UOB joins hands with BOI to facilitate investment opportunities

The bank signed a memorandum of understanding with Thailand's Board of Investment (BOI) on Thursday, with the goal of exploring practical collaboration between the two parties.

The partnership will also promote business cooperation and new investment opportunities in Thailand, as well as assist Thai entrepreneurs in investing overseas.

Sam Cheong, UOB's head of Foreign Investment Advisory Unit, pointed out that the Thailand and the Southeast Asian region had become one of the first choices for investors and manufacturers worldwide due to a stronger supply chain, reasonable wages for skilled workers, and an increase in middle-income consumers.

"If you look at the ASEAN trend of the last 10 years, there is a tremendous growth coming into this part of the world," he said pointing out that ASEAN FDI grew from 6% in 2015 to 17% in 2022.

Meanwhile, the reasons for investment into the region shifted from cheap labour and rich resources to the strong supply chain network and stable infrastructure.

He said each ASEAN country had its own set of strengths that foreign investors would consider when making their final investment decision. For example, Indonesia is known for its natural resource production, Vietnam for skilled labour, Singapore for financial technology and systems, and Thailand for its incentive policies and infrastructure and quality auto parts supply chain.

As a result, foreign investors looking at the ASEAN region will consider what conditions meet their needs, implying that Thailand's efficiency in high-tech production such as electronics, EVs, and all-related smart devices, as well as strong and secure infrastructure, will help attract investors to the country.

Still, in order to connect more foreign investors with the right partners in Thailand, UOB's advisory unit is strengthening its collaboration with the BOI.

Tan Choon Hin, president and CEO of UOB Thailand, explained that the MoU would support strategic collaboration between the BOI and UOB, as well as foster and facilitate new FDI into Thailand and assist Thai companies to expand overseas, with the goal of fostering greater economic and industrial linkage through both parties' strengths.

He expected the collaboration would allow UOB to make a greater contribution to Thailand's capabilities, such as policy understanding and human capital development.

"Thai and foreign companies can take advantage of UOB's comprehensive suite of tailored financial solutions, as well as the bank's regional networks, to connect with various government agencies, trade associations, and professional service providers throughout Asia," he said.

UOB will also collaborate with BOI on investment promotion activities, such as business matching fairs, trade exhibitions, and seminars to attract new investment to Thailand, he said.

Meanwhile, Choeng, head of the advisory unit, added that the unit expects to collaborate with the BOI to develop more policies to attract potential investors. UOB's long-term goal is to create more quality job opportunities in Thailand and strengthen the country's position as a global supply chain base, he said.

BOI secretary-general Narit Therdsteerasukdi said that this partnership would help implement BOI’s broader role, “not only as an incentive provider or promoter, but also an integrator, facilitator and connector”.

“The BOI has realised opportunities across emerging countries as the immense market and inclusive supply chain. We have currently set up 16 BOI overseas offices, including in China, India, Vietnam and Indonesia. We still see Singapore as a promising prospect, which is currently ranked the second biggest FDI contributor in Thailand. So we have targeted Singapore for the new overseas office in the near future. In addition, we will set up an office in Riyadh, Saudi Arabia, along with Chongqing, China, to also tap into the two most active investment communities to increase our outreach capability this year,” Narit added.

According to the BOI, Thailand, as ASEAN's second-largest economy, remains one of the most successful countries in attracting FDI, with Greater China and Singapore being the top sources of investment.

Nonetheless, rising global uncertainty and disruptive developments on multilateral trade fronts require businesses in the region, including Thailand, to look inward for new growth opportunities within ASEAN.

During the first nine months of last year, 910 projects with a total investment value of over 398 billion baht requested investment promotion support from the BOI.

The UOB Business Outlook Study 2023 found that 83% of businesses in this region want to expand overseas, with Indonesian, Chinese, Thai, and Vietnamese companies leading the way. Thai businesses, in particular, are looking to expand their investments in Singapore, Vietnam, Malaysia, and mainland China.

Tan Choon Hin, president and CEO of UOB Thailand, assured that the bank looks forward to working closely and collaboratively with the BOI to accelerate the country's transition to the "New Economy" and facilitate the rapid growth of FDIs across this region.

Since its inception in 2011, UOB's Foreign Investment Advisory unit has assisted over 4,200 foreign companies with cross-border expansion, and more than 370 companies to expand into Thailand, the bank said.

It has also allowed more than US$1.6 billion in projected FDI and over 18,000 job opportunities in Thailand since 2019. For outbound FDI, the bank has helped over 210 Thai companies expand across ASEAN, with Singapore, Malaysia, and Vietnam being the most popular investment destinations, the bank said.