UOB and China Council for the Promotion of International Trade (CCPIT) renew MOU to facilitate regional trade & investment
MOU aims to enhance enterprises’ supply chain resilience along China-ASEAN investment and trade corridors
SINGAPORE, 2 February 2024 – UOB Group and the China Council for the Promotion of International Trade (CCPIT) signed an enhanced Memorandum of Understanding (MOU) on 31 January 2024 to boost foreign investment and trade between China and Southeast Asia. This remains CCPIT’s only collaboration with a bank in Southeast Asia.
Established under China’s State Council in 1952, CCPIT plans and implements policies to promote trade and investment relations between China and foreign countries. CCPIT’s affiliated body, the China Chamber of International Commerce (CCOIC), was set up in 1988 to represent its members’ interests and support Chinese enterprises in overseas ventures.
Through this collaboration with UOB, more than 350,000 Chinese companies which are members of CCOIC can access UOB’s comprehensive suite of local and cross-border solutions. They can also tap on an ecosystem of strategic partners across the Bank’s Southeast Asian network, which include Malaysia. Both parties will also facilitate UOB’s regional clients’ projects and businesses in China.
UOB and CCPIT will support enterprises in key industry sectors to build resilient supply chains, drive progress through innovation, and practise sustainable development. Tapping on UOB’s strength in the region, the two parties will jointly strengthen services and support for Chinese enterprises investing in the ASEAN region.
Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, UOB, said, “With global supply chains continuing to shift into Southeast Asia, the region remains a bright spot and continues to attract investment flows. With our extensive regional footprint, strong sector solutions capabilities and regional payments, trade, and cash platforms, UOB is well positioned to support Chinese enterprises expanding into ASEAN. This will promote the interconnection of local value chains, create more job opportunities and forge a brighter future for people and communities in this region.”
UOB and CCPIT first signed an MOU in 2012 and first renewed it in 2014. Since then, the partnership has helped numerous Chinese companies to explore business expansion opportunities in Southeast Asia. China foreign direct investments (FDI) into ASEAN increased 81% from US$10.3 billion in 2016 to US$18.7 billion in 2022, reflecting ASEAN’s attractiveness to Chinese companies.
This collaboration draws on the strength of UOB’s Foreign Direct Investment (FDI) Advisory Unit, which was established in 2011 as a one-stop platform to help companies set up regional operations in Southeast Asia. To date, UOB’s FDI Advisory Unit has supported more than 1,500 Chinese companies expand beyond their shores, of which more than 90 per cent moved into Southeast Asia. Since 2020, the FDI Advisory Unit has facilitated more than S$22 billion FDI into Southeast Asia from China and enabled the creation of more than 50,000 job opportunities in the region. UOB has 10 FDI Advisory Centres across the region, including Malaysia to help companies lower the barriers as they look to expand across borders.
UOB Malaysia and CCPIT to strengthen partnership
Before visiting UOB in Singapore, the delegates also participated in the 16th Malaysia-China Business Council meeting on Tuesday in Kuala Lumpur supported by UOB Malaysia. Ms Ng Wei Wei, UOB Malaysia’s Chief Executive Officer, also met CCPIT Chairman Ren Hongbin to discuss collaboration opportunities. Malaysia is the first country Chairman Ren visited in 2024.
Ms Ng said, "The enhanced collaboration between UOB and CCPIT is timely as Malaysia and China celebrate 50 years of diplomatic ties in 2024. China is one of Malaysia’s largest foreign investors and trading partners, and UOB Malaysia has been playing an active role in facilitating these investments and bilateral trade between the countries. To-date, the Bank has supported more than 200 Chinese companies which have expanded into Malaysia. With the renewed commitment between the two nations to drive investment and trade relations, UOB Malaysia looks forward to leveraging our financial expertise and supply chain solution, as well as strong local ecosystem network to attract more investments from China into Malaysia.”