Singapore banks recalibrate ASEAN strategies

The three banks stand to see growth opportunities in the Johor- Singapore SEZ.

Singaporean banks are recalibrating their regional strategies, with a renewed focus on the ASEAN region, according to a report by CreditInsights.

Countries in the region are expected to remain “relatively insulated” from Trump’s trade policies, and even potentially benefit from an increase in non-US cross border trade.

All three banks— DBS, OCBC, and UOB— stand to see growth opportunities in the Johor-Singapore Special Economic Zone. They are expected to target not only small and medium enterprises (SMEs) but also retail customers with services such as remote account opening.

DBS, which has a smaller presence in Malaysia compared to the other two banks, is reportedly considering expanding into the Malaysian market by acquiring Temasek’s stake in Alliance Bank Malaysia.

Meanwhile, UOB has announced the sale of its small mainland China retail banking business, which is likely underperforming amid China's economic slowdown, similar to other retail banks in the country, Credit Insights said.

As for OCBC, a separate report by UOB Kay Hian (UOBKH) noted that it has a seven-branch presence in Johor, as well as a commercial banking business serving  Chinese and bumiputra entrepreneurs.

Its digital capabilities enable OCBC to acquire new customers and provide pre-approved loans for SME, said UOBKH analyst Jonathan Koh.