United Overseas Bank (UOB), Singapore’s third-largest lender by assets, is aiming to dominate trade financing in Southeast Asia, capitalising on the region’s appeal as a beneficiary of a widening rift between the US and China.
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The bank, which serves thousands of small and medium enterprises (SMEs) and corporate giants, wants to capture a bigger slice of the US$2 trillion trade flows in the region, according to Frederick Chin, head of group wholesale banking and markets.
“The bright spot will be in Asean for the next few years,” he said in an interview in Ho Chi Minh City last week, referring to the grouping of Southeast Asian nations. “We are already the number one trade bank in Asean, and I want to invest [our resources] to dominate this region.”
As global manufacturers adopt “China plus one” strategies to mitigate the economic fallout from Washington-Beijing tensions, Southeast Asia has emerged as a key beneficiary of supply-chain upheavals. As a result, the region’s top economies attracted more foreign direct investment than China for the first time in a decade last year.
UOB’s global wholesale banking offers a broad range of products including loans, trade services, cash management, and advisory services. The segment produced a record income of S$7.1 billion (US$5.5 billion) in 2023, according to the bank’s annual report to shareholders.