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The Sun
a day ago
- Business
- The Sun
UOB, FMM, SMF in pact to spur cross-border manufacturing projects, investments
PETALING JAYA: In a move to bolster regional economic integration and facilitate foreign direct investment (FDI) flows, UOB signed a tripartite memorandum of understanding (MoU) with the Federation of Malaysian Manufacturing (FMM) and the Singapore Manufacturing Federation (SMF) at the Asean Conference in Singapore today. The strategic partnership aims to strengthen the Malaysia-Singapore manufacturing corridor by leveraging UOB's regional network and sectoral expertise to help businesses, especially SMEs, scale across borders, access new markets, and grow sustainably. The collaboration supports the 2025 Asean Summit's theme of inclusivity, ensuring that businesses of all sizes can participate in and benefit from regional growth. It also builds on the momentum of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement between both governments. Deputy Investment, Trade and Industry Minister Liew Chin Tong said, 'One of the key visions laid out for the JS-SEZ is to establish a better integrated and resilient supply chain ecosystem across the Malaysia-Singapore border. Both Johor and Singapore can leverage on our complementary capacities, join hands to drive innovation and enhance productivity. This MoU between FMM, SMF and UOB is therefore timely and propitious to align the strengths of Malaysia and Singapore for greater regional economic growth in the current global trade climate.' UOB Malaysia CEO Ng Wei Wei said, 'UOB is proud to have been an early supporter of the JS-SEZ, launching initiatives such as the Green Lane with Invest Johor and setting up dedicated SEZ Desks and introduced a fast lane account opening services. Since 2024, UOB has committed RM11.5 billion in financing to support businesses in Johor and is actively facilitating RM10 billion of FDI flows into the zone. Through this MoU, we look forward to working with FMM and SMF to help their members seize cross-border opportunities and contribute to Asean's industrial growth.' Reflecting the bank's long-term commitment to Asean's sustainable economic growth, the MoU outlines two key objectives. The first is to promote opportunities by facilitating and exploring business opportunities and cross-border projects in the region, particularly between Singapore and Malaysia, for stakeholders and ecosystem partners. The second is to deepen collaboration by driving joint business, trade, and investment initiatives focused on strengthening the cross-border manufacturing ecosystem. To support these efforts, UOB will provide advisory services, including tailored market entry and in-market guidance, to FMM and SMF members. These services will help businesses navigate the financial and operational aspects of establishing a presence in Singapore, Malaysia and across Southeast Asia. FMM president Tan Sri Soh Thian Lai said, 'This collaboration sets the stage for more cross-border success stories under the JS-SEZ. FMM is committed to supporting our members in leveraging this important bilateral initiative to build stronger regional connections. With the support of UOB and SMF, our manufacturers, especially SMEs, will be better equipped to pursue growth opportunities, foster innovation, and become integral players in ASEAN's evolving industrial landscape.' SMF president Lennon Tan said, 'Asean's competitiveness rests on how quickly our manufacturers can innovate, scale and connect. Through this partnership with UOB and our Malaysian counterpart FMM centred on the Johor-Singapore Special Economic Zone, SMF will help businesses to seize cross-border opportunities, accelerate innovation, and strengthen supply chain resilience. Together we will open clearer paths to capital, talent and technology, enabling sustainable growth and keeping the Malaysia–Singapore manufacturing corridor competitive and future-ready.'
Business Times
2 days ago
- Business
- Business Times
Ripe time to grow regional industrial giants, work towards Asean-led development: panellists
[SINGAPORE] In an era marked by multipolarity, supply chain disruptions, geopolitical conflicts and growing protectionism, it is a pivotal time to strive towards creating regional industrial champions and advancing Asean-led development to deepen intra-bloc integration. Such sentiments were shared by panellists on Thursday (Jul 3) at the Asean Conference, during a ministerial dialogue titled 'Asean integration in the multipolar world' with Singapore Deputy Prime Minister Gan Kim Yong. The day-long event at the Resorts World Convention Centre was organised by the Singapore Business Federation (SBF), alongside founding partners UOB, RSM Singapore and Rajah & Tann. The panel featured Malaysia Deputy Minister of Investment, Trade and Industry Liew Chin Tong and Indonesia Deputy Minister for Investment Cooperation at the Ministry of Investment and Downstream Industry Tirta Nugraha Mursitama. The hour-long session was moderated by SBF chief executive officer Kok Ping Soon, and explores how each country interprets the mandate of an integrated Asean and their plans to deliver on this. Noting that now is a difficult but interesting time for Asean, Liew posed the question: 'Do we still rely on a foreign direct investment-driven economic model or an export-led industrialisation model where we export to the US – or do we start thinking about growing Asean companies?' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The bloc has to start thinking about growing regional giants and creating its own technologies – with it, he said, intra-Asean cooperation, integration and trade will not be too difficult because member states will have to work with one another. On the way forward, Prof Tirta said: 'My optimistic way of thinking is that if we are internally strong as Asean… we can create the idea of not state-led development but Asean-led development.' The Indonesian minister called for stronger cooperation and communication between business and government leaders. Bilateral and regional complementarity On recent news of Vietnam's trade agreement with the US that supposedly culminated in a lower-than-promised 20 per cent levy, Kok noted that the world's largest economy is 'obviously pursuing a divide-and-conquer strategy'. On whether that weakens Asean centrality, DPM Gan, who is also the minister for trade and industry, contended that, at the end of the day, tariffs have to be negotiated bilaterally. Nonetheless, Asean member states have made a commitment to honour agreements signed with one another, so as to ensure intra-bloc trade remains rules-based, he continued. 'Even while we negotiate with the US separately and bilaterally, at the same time, at the back of our minds, we remain committed to Asean cooperation and integration,' added the Singapore minister. His sentiments were echoed by SBF chairman Teo Siong Seng, who highlighted the importance of Asean's collective response in his welcome remarks. Known in the shipping circles as SS Teo, the executive chairman of home-grown carrier Pacific International Lines, said: 'At the enterprise level, many companies initially adopted a wait-and-see stance, viewing themselves as pricetakers or downstream in the supply chain, or assuming the tariffs were just a scare tactic.' But it has become clear that action must be taken, he continued. In an environment characterised by trade realignment and uncertainty around capital flows brought about by a shift in US trade policy, Teo noted: 'Asean's collective response will be crucial (and) we are already seeing our community step up.' UOB deputy chairman and CEO Wee Ee Cheong highlighted in his opening address the opportunities from the rapidly expanding digital economy and new investments in climate and sustainability. Artificial intelligence and environmental, social and governance factors are now central to government and business trends, added Wee, who urged small and medium-sized enterprises to adapt their business models to compete and thrive. 'Let us all work together to build (an) inclusive Asean, where every business – big or small – has a stake in our shared success,' he said. Deepening cooperation The conference also saw UOB ink five memorandums of understanding (MOU) with government agencies and leading industry players across Asean and China. The agreement between the lender and Enterprise Singapore saw both parties pledging to encourage partnerships between local enterprises and foreign companies seeking to expand in the region. A second deal with the Federation of Malaysian Manufacturing and Singapore Manufacturing Federation was aimed at facilitating business opportunities in the region. The third pact was between UOB Hong Kong and the Hong Kong Trade Development Council, and is aimed at establishing a framework of cooperation to strengthen regional ties and promote sustainable growth The fourth agreement was signed by UOB China and ZGC International. It will see UOB China providing complementary financial services and empowering the cross-border development of companies in ZGC industrial parks. The final memorandum, which was between UOB, J-Will Corporation and Hildrics Capital, is aimed at the joint development of business opportunities and supporting Japanese companies entering the Asean market. Noting that the region remains an attractive destination for businesses despite global tensions, UOB's Wee said: 'As opportunities arise from the rewiring of global supply chains, trade flows within Asean and between China and Asean are expected to increase.'
Business Times
2 days ago
- Business
- Business Times
Businesses cannot bank on tariff rollbacks to come with political transition; higher costs to stay: DPM Gan
[SINGAPORE] Enterprises must be prepared for lasting US tariffs and higher export costs to the world's largest economy to endure, rather than counting on the levies to end with a change in administration after four years. Deputy Prime Minister Gan Kim Yong, who is also Singapore's minister for trade and industry, said this in his opening remarks at the Asean Conference on Thursday (Jul 3). The day-long event at the Resorts World Convention Centre was organised by the Singapore Business Federation, alongside founding partners UOB, RSM Singapore and Rajah & Tann. In line with this year's theme of 'Asean integration in the multipolar world', DPM Gan noted: 'There is growing bipartisan consensus within the US on the use of tariffs to achieve fair and balanced trade with the world, as well as to 'reshore' or 'near-shore' critical industries.' He added that a rising fiscal deficit means that tariffs will increasingly be an important source of tax revenue for the American government. And though many firms today are pushing back on tariffs, DPM Gan contended that upon investing in the US and setting up production bases there, their incentive would be to ensure these duties stay in place so as to protect their investments. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up He urged businesses to prepare for greater scrutiny over their production and supply chains, and set up separate lines for exports to the US versus the rest of the world. 'To benefit from lower tariffs – especially in sectors such as steel, autos and, in time to come, pharmaceuticals – companies must be prepared to meet the US' conditions… even if these requirements come at a much higher cost,' he said. On top of differentiation, firms must also diversify into new markets – perhaps even new products and services. Even with concerted effort among like-minded partners to preserve an open global trade environment, we must be prepared for a more protectionist landscape ahead, he said. What does America want? Commenting on the recent news of Vietnam's trade agreement with the US that supposedly culminated in a lower-than-promised 20 per cent levy, DPM Gan noted that everyone is 'eagerly waiting' for the outcome of US negotiations with the rest of its key trading partners. It is important to reflect on the US' intentions, he continued. For one thing, the superpower wants 'fair and balanced trade' with the rest of the world – but this also does not translate into an indifference to free trade or, more specifically, trade barriers against its exports, contended the minister. 'In fact, the US is also looking to address non-tariff measures in these discussions, such as standards, testing and certification requirements, and sanitary and phytosanitary requirements,' he said. Furthermore, the US wants to reshore or near-shore domestic production in industries in the likes of steel, pharmaceuticals and semiconductors that it views as key to national and economic security, which explains its product-specific tariffs. A global, rules-based framework DPM Gan noted that the US has not yet given up on the multilateral trading system. Though the US has criticised the World Trade Organization (WTO) for what it sees as an inability to effectively address issues such as non-market practices and overcapacity, it has not pulled out of the international forum, said the minister. Maintaining that the WTO remains an important institution foundation on which to build stronger global, rules-based trade architecture, DPM Gan said: 'While the system is not perfect, we should not abandon it.' He reiterated Asean's commitment to working together to strengthen the WTO and the global, rules-based trading framework. 'Without a rules-based global trading system – and, in particular, the assurance that global trade will continue to be conducted on a free, fair and non-discriminatory basis – we risk being at the mercy of larger economies that possess stronger levers on account of their market size,' he said.
