UOB inks MOU with chambers of commerce to boost collaboration, investments in Johor-S’pore SEZ

SINGAPORE – UOB has signed an agreement to boost collaboration and investment opportunities in the Johor-Singapore Special Economic Zone (JS-SEZ).

The bank inked the memorandum of understanding with the Singapore Chinese Chamber of Commerce & Industry (SCCCI) and the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) on Jan 16.

The agreement involves UOB offering financial and advisory services to support businesses looking to enter new markets in the region or expand operations in the JS-SEZ.

The bank – the largest foreign lender in Malaysia by assets – will help connect these firms to local partners. UOB and the Chinese chambers will also jointly organise activities such as visits, conferences and networking events, as well as propose new initiatives aimed at connecting businesses with opportunities.

UOB chief executive and deputy chairman Wee Ee Cheong told the signing ceremony held at the SCCCI building: “We are very optimistic of the growth of the SEZ and stand ready to support companies on both sides of the Causeway to seize new opportunities in Johor, Malaysia and across the Asean region.”

While many small and medium-sized enterprises want to be part of the Asean growth story, Asean countries are diverse and complex in terms of culture and regulations, Mr Wee added.

SCCCI president Kho Choon Keng said the partnership will provide members with the network, resources and financial solutions to thrive in a dynamic business environment. The SCCCI represents over 40,000 large, small and medium-sized companies across a range of industries.

ACCCIM president Ng Yih Pyng added: “This would unlock new avenues for businesses, fostering sustainable investment growth in 11 diverse sectors as promoted in the JS-SEZ. Amongst these include electronics and electrical products, energy, logistics, food security, tourism and digital economy.”

The ACCCIM represents around 110,000 Malaysian Chinese companies, individuals and trade associations in consultative meetings organised by key government ministries and agencies.

Mr Dave Ng, chairman of Singapore Logistics Association, told The Straits Times that it was a challenge for Singapore companies to understand the rules and regulations of doing business in Malaysia and vice versa.

“With this MOU signing, we can actually have more dialogue to understand them. It will be beneficial to us. We can therefore explore more things like cross-border trucking and the opportunity for multi-modal transportation,” Mr Ng said.

Mr Lim Kian Chin, chairman of the Singapore Transport Association, said the MOU provides confidence that both chambers are coming together to help each other, instead of competing against each other.

In addition, UOB being a Singapore bank gives local firms a sense of familiarity, Mr Lim said, noting that UOB has been operating in Malaysia for more than 70 years and is familiar with the regulations there.

However, more details are needed in order to know if the MOU will indeed help Singapore’s transport companies, Mr Lim said.

The

JS-SEZ agreement signed on Jan 6

has been praised as a key milestone in Malaysia-Singapore relations. It will allow businesses to tap Singapore’s capital and technology and Malaysia’s vast resources and cost benefits.