United Overseas Bank Limited (UOB) plans to double its small and
medium-sized enterprise lending across its Southeast Asian network by 2015.
To achieve this growth in
Singapore, Malaysia, Thailand and Indonesia, UOB will continue to invest in
attracting experts in small business and enhancing its regional platform. Last
year, UOB invested S$15 million to develop a new credit application tool to
reduce the loan processing time for small businesses.
According to Victor Lee, UOB
Group's head of business banking, Southeast Asian economies generally expect to
be bolstered by domestic consumer and public spending, so there will be
opportunities for small businesses to grow.
"Small businesses can take
advantage of the current low interest rate environment to take up a loan to
expand and reposition their business or strengthen working capital," he
said.
Mr Lee said there were several
domestic trends contributing to Southeast Asia's economic growth. In Indonesia,
private consumption contributed approximately 40% of the country's gross
domestic product (GDP) growth in the first three quarters of this year and will
continue to be the key driver of the economy. The bank projects a growth of 6%
this year and 6.5% in 2013.
In Malaysia, the recent
introduction of a minimum wage for the private sector will support private
consumption growth in the country in the medium term, which should spur growth
of 4.3% this year and 5% in 2013.
Similarly in Thailand, post-flood
reconstruction efforts and stipulated minimum wage increases could spur further
growth in private consumption, an increase of 5% this year is expected and 4%
in 2013.
In Singapore, growth is expected
to be driven by tourism, retail, food and beverage, and the pharmaceutical
sectors, projected at 2.5% in 2012 and 3% next year.
"We also find many small
businesses currently having aspirations to own their factories and commercial
offices. This is a reflection of their stronger capital structures and greater
financial strength than before. We are well-positioned to help our customers
build their long-term assets and business," said Mr Lee.
Currently, UOB operates more than
100 business banking centres, branches and hubs specifically focused on the
needs of small businesses across the region.
In Singapore, UOB is the only
bank providing business relationship managers at all of its retail branches to
cater to the requirements of small businesses.
"More than ever, small
businesses want more than a cheque-book account and a line of credit. They want
to talk to a knowledgeable consultant who understands the needs of their
business and offer insightful advice," explained Mr Lee.
UOB set up business banking as a
separate division three years ago to serve the financial needs of this group of
customers.
"Small businesses are key
drivers of employment and commerce, representing 90% of all SMEs," said Mr
Lee.
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