Singapore’s top banks are reorienting their strategies to capitalize on growth prospects in the ASEAN region, according to a recent CreditInsights report. With trade policies from the US potentially impacting global markets, the ASEAN region is expected to remain “relatively insulated” from the fallout, positioning itself to benefit from an increase in non-US cross-border trade.
DBS, OCBC, and UOB, the three major Singaporean banks, are all eyeing the Johor-Singapore Special Economic Zone (SEZ) as a key area for expansion. They aim to target both small and medium enterprises (SMEs) and retail customers, leveraging services like remote account opening to attract a wider clientele.
DBS, which has a more modest footprint in Malaysia compared to its counterparts, is reportedly considering acquiring Temasek’s stake in Alliance Bank Malaysia as part of its strategy to strengthen its presence in the Malaysian market.
Meanwhile, UOB has decided to sell its underperforming retail banking business in mainland China, aligning with a broader trend of retail banks in China facing challenges amid the country’s ongoing economic slowdown, according to CreditInsights.
OCBC, on the other hand, has a well-established presence in Johor with seven branches and a commercial banking division that serves both Chinese and bumiputra entrepreneurs. The bank’s strong digital capabilities are allowing it to expand its customer base, with features like pre-approved loans for SMEs further enhancing its appeal, noted UOB Kay Hian analyst Jonathan Koh.
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