UOBT hones in on regional investment opportunities

UOBT hones in on regional investment opportunities

United Overseas Bank (Thai) or UOBT, the local unit of Singapore's United Overseas Bank (UOB), has set up a foreign direct investment (FDI) advisory unit as part of its parent's strategy of cashing in on rising intra-regional trade and investment.

UOBT has already established FDI units in India, China, Malaysia, Indonesia and Singapore.

An FDI advisory unit is charged with providing financial support to both local and foreign investors expanding their business across Asia, especially those keen to prepare for the Asean Economic Community (AEC) in 2016.

Eric Tham Kah Jin, the managing director and head of commercial banking at parent UOB, said ailing Western economies combined with burgeoning Eastern ones have underpinned Asia's FDI activities, particularly intra-regional trade and investment.

Infrastructure-based development and healthy domestic consumption has also facilitated growth of FDI activities in the region, he said."Intra-regional trade and investment in Asia made up 44% of total trade flows in 2011, and they are expected to increase to around 60% in 2020 thanks to the economic momentum of the region," said Mr Tham.

Sam Cheong Chwee Kin, UOB's executive director of commercial banking, said Southeast Asia's total share of global FDI jumped to 8.2% last year from 2% in the wake of the 1997 financial crisis.

In 2012, FDI into Asian countries is expected to show a rise, with China being the top destination with US$120 billion.

Singapore ranks second at $54 billion, followed by India ($27 billion), Indonesia ($19 billion), Malaysia ($10 billion) and Thailand ($8 billion).

For Asean markets, FDI inflows grew by 227% over the past three years, with Singapore accounting for most of the amount.

Outbound investment by Thais surpassed FDI into Thailand for the first time in 2011.

This was due mainly to the manufacturing, mining and financial sectors.

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