SMRT, UOB team up to help retailers improve cash flow, gain access to digital, financial solutions
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(From left) Group CFO of SMRT Phua Yung Keat, Group CEO of SMRT Ngien Hoon Ping, chairman of SMRT Seah Moon Ming, UOB CEO Wee Ee Cheong, head of group wholesale banking and markets at UOB Frederick Chin, and head of group corporate banking and group investment banking at UOB Edmund Leong at an MOU signing ceremony on Nov 25.
PHOTO: UOB
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SINGAPORE – SMRT Corporation and UOB signed an agreement on Nov 25 to help retailers boost cash flow and access digital and financial solutions, among other measures, as small and medium-sized enterprises (SMEs) in Singapore grapple with operational challenges.
Eligible tenants of about 800 retail spaces in SMRT’s network will be able to replace traditional cash security deposits with banker’s guarantees issued by UOB – potentially freeing up to three months’ rent.
The initiative will apply to new and re-contracting tenants, SMRT and UOB said in a joint press statement on Nov 25.
Such tenants will also gain access to solutions for accounting, point-of-sale systems and marketing.
Mr Tony Heng, president of SMRT’s business arm Stellar Lifestyle, said in a statement: “Retail SMEs are the heartbeat of our communities, yet many are facing unprecedented challenges in recent times.”
Stellar Lifestyle manages the estimated 800 retail spaces across the rail network, which serves more than two million commuters daily.
“At Stellar Lifestyle, we are deeply committed to helping our SME tenants reduce their operational costs and equip them with innovative solutions for growth,” said Mr Heng.
“Our partnership with UOB marks a significant step forward in unlocking vital cash flow for our merchants, enabling them to thrive longer, even in tough times,” he added.
The partnership will give tenants access to UOB BizSmart, a suite of digital tools to simplify SME operations and enhance productivity.
Through UOB BizSmart, tenants can streamline functions such as accounting, human resources and payroll, point-of-sale systems and digital marketing.
They will get support from UOB’s digital advisers, who offer free-of-charge consultations on solutions that aid businesses’ digital transformation.
Several BizSmart digital services will be offered to tenants at no cost or at discounted rates.
One of Stellar Lifestyle’s tenants – Mr Lance Tang, co-founder and group director of Dancepointe Academy – said the company can do more with cash flow freed up.
“With more flexible cash flow, we can invest in upgrading our store, improving the commuter experience and identifying opportunities for expansion into other retail spaces. The additional digital solutions and advice from UOB will also help transform daily operations, which is a big win for SMEs like ours,” he said.
Under the memorandum of understanding, UOB will run campaigns and promotions on Stellar Lifestyle’s Wink+ app, offering commuters greater access to deals and rewards.
SMRT chairman Seah Moon Ming said: “With our strong network and wide reach of 1.3 billion weekly impressions across 15,000 assets in MRT stations and bus shelters, we can help UOB reach customers across Singapore’s transport ecosystem – on every street, every screen and every journey.”
The bank will further collaborate with Stellar Lifestyle to promote and adopt new retail and advertising technologies, including joint marketing efforts and the integration of innovative solutions to help merchants improve the customer journey and operational efficiency.
The partnership will extend to SMRT’s subsidiary Strides, which will provide limousine and taxi services to UOB’s customers and partner with UOB Travel on taxi and limousine services and cross-border transportation within Singapore and Malaysia.
Strides will also refer car buyers to UOB for vehicle loans on preferential rates.
Further, UOB will partner SMRT Group as well to explore supply chain financing solutions for its vendors. Companies in SMRT’s supply chain network – including parts distributors, facilities management, software and solutions service providers – stand to benefit.
UOB will provide a sustainability financing framework, and environmental, social and governance-linked advisory services to SMRT Group and its vendors.
UOB’s foreign direct investment advisory unit will provide market advisory services to SMRT Group’s overseas partners that are seeking business expansion and opportunities in Singapore and across the region.
