UOB and CCPIT sign enhanced MOU to facilitate China-Asean trade

SINGAPORE: UOB Group and the China Council for the Promotion of International Trade (CCPIT) have inked an enhanced memorandum of understanding (MoU) to boost foreign investment and trade between China and South-East Asia.

Through this collaboration with UOB, more than 350,000 Chinese companies that are members of the China Chamber of International Commerce (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 South-East Asian network, which include Malaysia. Both parties will also facilitate UOB’s regional clients’ projects and businesses in China,” UOB said in a statement.

The MoU was signed on Jan 31, 2024, and is CCPIT’s only collaboration with a bank in South-East 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.

The CCOIC, which is an affiliated body of CCPIT, was set up in 1988 to represent its members’ interests and support Chinese enterprises in overseas ventures.

According to the statement, UOB and CCPIT will support enterprises in key industry sectors to build resilient supply chains, drive progress through innovation, and practise sustainable development.

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 into Asean increased 81% from US$10.3bil in 2016 to US$18.7bil in 2022, reflecting the region’s attractiveness to Chinese companies.

UOB deputy chairman and chief executive officer Wee Ee Cheong said with global supply chains continuing to shift into South-East 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,” Wee added.

Before visiting UOB in Singapore, the delegates also participated in the 16th Malaysia-China Business Council meeting in Kuala Lumpur supported by UOB Malaysia.

UOB Malaysia Ng Wei Wei 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,” Ng said.