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Building Asia is a collection of business stories on CNA that examines the financial forces driving Asia’s position as an economic powerhouse.
UOB – Building the future of ASEAN was first aired on 22 May 2023 under the Building Asia with UOB series. With the ASEAN region poised for further economic growth, learn how UOB is helping companies seize the opportunities within ASEAN – as we build the future of ASEAN together.
Transcript
Frederick Chin (Head, Group Wholesale Banking and Markets, UOB):
I see ASEAN awakening. An economic powerhouse to the world. The ASEAN potential is the result of a multi-polar world. Today ASEAN is still attractive for foreign direct investments.
It offers cost competitiveness, a growing young population and rising middle income. Despite the pandemic, ASEAN could grow its FDI inflows by over 40 per cent in 2021, setting a new record against pre-pandemic times. ASEAN is the third largest FDI destination, after the US and China.
The total trade value of ASEAN is also close to 2.5 trillion US dollars. Singapore, as a transshipment hub and financial centre, saw about 1 trillion US dollars in trade value flows. The potential of ASEAN is also due to greater technology adoption. And there is growing potential for ESG transition investments estimated at US$1 trillion.
We have helped many clients unlock ASEAN’s potential. And I hope to see many more achieve the same success. We are ready to support with our regional capabilities: A seamless cross-border network. We have a Foreign Direct Investment advisory unit to help our clients to set up in new markets.
We also have product capabilities and systems across cash, trade and supply chain management. And our people have deep sector and local market knowledge to address pain points and provide banking solutions and services. Our clients are also supported by dedicated ESG teams on their transition plans.
Today, with China emerging as the second largest economy, integration with ASEAN will serve as a new growth engine. We continue to see increasing trade flows between China and ASEAN, at about 900 US billion dollars. The rich natural resources of ASEAN allow it to benefit from trade with both China and the West. However, it also has a diverse culture, language and regulations. So, what businesses need is to make this diversity work for them.
What we would like to do is to connect our clients to cross-border trade with, and within, ASEAN. We want to build the future of ASEAN, together.
