Singapore: A Springboard for your ASEAN Investment David Chao FDI Advisory UOB Hong Kong November 2016 1
Growing Regional FDI Trends FDI inflows into ASEAN and China (USD billion) 95 115 105 124 121 124 94 108 126 129 133 46 51% 2009 2010 2011 2012 2013 2014 China ASEAN More than 80% of FDI flows into ASEAN are from outside ASEAN. Source: UNCTAD World Investment Report 2015
Catalysts Sustaining Regional FDI Growth Trans-Pacific Partnership (TPP) ASEAN Economic Community (AEC) - High Standard Free Trade Agreement - 12 Participating Countries led by US - Make up 40% of World s Economy - UOB has presence in 8 countries Regional Comprehensive Economic Partnership (RCEP) - Regional Economic Integration - Single Market and Production Base - Free Trade and Freer Capital Flow - UOB has presence in 8 countries 21st Century Maritime Silk Road under One Belt One Road (OBOR) - Regional FTA led by ASEAN - China, India, Japan, Korea, Australia and NZ - Make up 45% of World s population and 35% of Global Trade - UOB has presence in 13 countries - Enhance Connectivity for trade and investment - Accelerate Chinese s ODI - UOB has presence in 8 countries in ASEAN
ASEAN s Regional Free Trade Agreement
ASEAN Growth Opportunities ASEAN Integration will accelerate regional economic growth. CONSUMER MARKET Rise of the middle-income group Diverse in taste and increasingly discerning in their choices Build strong brand through Multi-locals Strategy Rising intra-asean trade with further trade liberalisation INCREASING TRADE Regional trade pact with Regional Comprehensive Economic Partnership (RCEP), TPP, AEC Tap on government tax incentives for global trading hub Integrating with global value chain VALUE CHAIN Regional production network to reap industrial strength differential Hub & Spokes Strategy 1. RCEP comprises ASEAN and 6 other countries (comprising China, Japan, South Korea, India, Australia and New Zealand)
Economic & Cultural Diversity ASEAN Growth Strategies Local Partners Regional Banking Partner Identify Right Market Entry ASEAN Strategy Cultural Agnostic Multi-locals Strategy Industrial Strength Differential
ASEAN Hub and Spoke - Singapore
Singapore Incentives & Investment
Singapore Treasury Centre Incentive
Singapore FTA Agreements
HK vs Singapore? No clear cut and definitive answer of which one is more attractive Is a holding structure really necessary? Is a regional HQ for Asia Pacific necessary? Can economic substance be created in HK or Singapore to take advantages of the double taxation agreements? Is there a double taxation between HK/Singapore and the respective FDI country? Where do you wish to have your operational office? Are you seconding employees? What are the visa requirements?
UOB Foreign Direct Investment Advisory Launched in October 2011, to ride on increasing global FDI flows into the region. FDI into ASEAN (USD133 billion) exceeded FDI into China (USD129 billion) in 2014 1 Assist foreign companies in expanding and investing across the region, by leveraging UOB s strategic partnerships with government investment promotion agencies and professional service providers Facilitate cross-border financing by providing one-stop service to access full suite of banking products and services Home Market Strategic Partnerships Government investment promotion agencies Legal & accounting Market consultancy Company secretariat firm UOB FDI Advisory Service Host Market One-stop Access to Bank Services Corporate/Commercial Banking Personal Banking Transaction Banking Investment Banking Treasury Services 1. Source: UNCTAD World Investment Report 2015
Seamless Access to Banking Services Leveraging on Internal FDI Ecosystem Galvanize cross-segments/channels to capture FDI business opportunities Offering a seamless, integrated, coordinated go-to-market approach Internal FDI Ecosystem Commercial Banking Our FDI unit works with all customer segments, while UOB s overseas offices target and facilitate the onboarding of quality FDI into banking franchise International Private Banking FDI Privilege Banking Corporate Banking (S pore & Overseas) STCF Establish touch points at each customer segment to refer / receive FDI leads and collaborate on joint events / marketing Overseas branches/subsidiaries offer incountry FDI advisory services Implemented FDI KPIs in balanced scorecards of Group Wholesale Banking functions to drive business focus
UOB FDI Centres and Partner Ecosystem Business France Japan Finance Corporation UK Trade & Investment Investment Promotion Centre South Vietnam Singapore Economic Development Board International Enterprise Singapore China Council for the Promotion of International Trade Indonesia Investment Coordinating Board Foreign Investment Agency of Vietnam Myanmar Investment Commission Malaysian Investment Development Authority Thailand Board Of Investment
Outreach Events Outreach and Marketing Activities Organise national-level symposiums jointly with government agencies, trade bodies and business associations Organise group seminars and joint customer events for business owners UOB FDI ASEAN Series Niche seminars focusing on particular countries, their investment hotspots and key industries to attract and facilitate FDIs into those countries FDI ASEAN Series Indonesia 5 Aug 2015 FDI ASEAN Series Penang 30 Mar 2016
Contributing to Awards and Accolades Most Admired ASEAN Enterprise for ASEAN Centricity 2014 Awarded by ASEAN Business Advisory Council to recognise outstanding enterprises in the ASEAN business community. Banking Award 2015 The Hong Kong Business Awards aims to encourage and sustain the region s entrepreneurial spirit and recognise excellent standards of corporate management and governance.