United Overseas Bank (Malaysia) Bhd expects to facilitate greater foreign direct investment (FDI) into Penang as more of its corporate clients are attracted to the Malaysian state’s conducive business environment and well-established status as a global manufacturing and services hub.
UOB Malaysia estimates that the number of its overseas clients, especially those from the electronics and semiconductor industries, investing in Penang will increase by 30 per cent over the next 12 months.
These companies are mainly from China, Taiwan and Singapore who are looking to tap into Penang’s cost-effective manufacturing and electronics infrastructure, and have ambitions to extend their reach in Southeast Asia.
Kevin Lam, Deputy Chief Executive Officer and Head of Wholesale Banking at UOB Malaysia (pix), said that the Bank’s regional corporate clients see Penang as more than just a manufacturing base.
“Despite the muted global economic outlook, Penang remains an attractive expansion destination for our regional corporate clients. They are tapping into its favourable business conditions and the rising consumption power of Southeast Asia’s growing middle class population to seek long-term growth in the region,” said Lam.
To help clients seize business opportunities in Penang, UOB Malaysia partnered government promotion agencies – MIDA and InvestPenang – to share insights on the state’s investment potential during a half-day forum held in Singapore on 30 March 2016. About 100 participants attended the event, which is part of the UOB FDI ASEAN Series that aims to help companies appreciate the different business environments in Southeast Asia. UOB Malaysia will hold its second investment forum in Kuala Lumpur later this year.
UOB Malaysia’s FDI Advisory Unit has also collaborated with MIDA and other agencies such as the Iskandar Region Development Authority (IRDA), the East Coast Economic Region Development Council (ECERDC) and the Sarawak Corridor of Renewable Energy (SCORE) to position Malaysia as a key investment destination in Southeast Asia.
Established in 2013, the UOB Malaysia’s FDI Advisory Unit provides assistance to foreign enterprises looking to invest and expand their business in Malaysia. Their services include assisting with company incorporations, advising foreign companies expanding into Malaysia and providing access to the Bank’s full suite of corporate and personal banking solutions through its long established regional network