DBS and Japan Finance Corporation partner to strengthen business connectivity between Japan and rest of Asia
Singapore, 27 Nov 2024 - DBS and Japan Finance Corporation (JFC), a financial institution wholly owned by the Japanese government, have signed a memorandum of understanding (MOU) to support the regionalisation of Japanese small and medium-sized enterprises (SMEs). The partnership enables DBS to provide financing support for SMEs expanding into key Asian markets – China, Hong Kong, India, Indonesia, Singapore and Taiwan. For the first time, these SMEs can access multiple markets through a single banking partner.
Tan Su Shan, Deputy Chief Executive Officer and Group Head of Institutional Banking, DBS, and Kenzo Yoneda, Senior Managing Director and General Manager, SME Unit, Japan Finance Corporation, inked a memorandum of understanding today to support the regionalisation of Japanese small and medium-sized enterprises. The partnership enables DBS to provide financing support for SMEs expanding into key Asian markets. For the first time, these SMEs can access multiple markets through a single banking partner.
Representatives from DBS and the Japan Finance Corporation at the signing of a memorandum of understanding today to support the regionalisation of Japanese small and medium-sized enterprises.
Through this collaboration, Japanese SMEs can tap into DBS’ regional footprint and deep local expertise across the bank’s six core markets in North Asia, South Asia and Southeast Asia. They will also gain access to DBS’ suite of innovative financial solutions, including digital cross-border payment capabilities and trade financing, as well as its ecosystem of professional services providers offering legal, accounting and human resource support.
To further facilitate their expansion, JFC will extend standby letters of credit, which will enable Japanese SMEs’ local subsidiaries to secure long-term, local currency-denominated funding. Under this programme, JFC’s standby letter of credit acts as a guarantee, facilitating smooth access to funds through DBS. Together, this partnership holds the potential to enhance business connectivity between Japan and the rest of Asia, fostering a stronger presence for Japanese SMEs across the region.
Tan Su Shan, Deputy Chief Executive Officer and Group Head of Institutional Banking, DBS, said:
“DBS is proud to partner with Japan Finance Corporation to create a multi-regional pathway that empowers Japanese SMEs to tap into Asia’s vast opportunities. A recent survey by the Japan External Trade Organization (JETRO) highlights that eight Asian markets - China, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand and Vietnam – are among the top destinations for Japanese businesses eyeing future growth. This MOU represents our commitment to helping Japanese SMEs regionalise and diversify by providing them with the financial and strategic support they need to grow across Asia with confidence. Together, we are building bridges that foster trade, business connectivity and sustainable growth for businesses of all sizes.”
Kenzo Yoneda, Senior Managing Director and General Manager, SME Unit, JFC, said: “With the business alliance with DBS, we have established a strong foundation to support our customers' financing in DBS’ six core markets. This will enable our customers to raise funds smoothly overseas and take advantage of DBS’ financial services and extensive overseas network. We are very much looking forward to this business alliance leading to further growth and development of our customers.”
This partnership builds on DBS’ longstanding commitment to Japan as an important market to drive innovation and growth. In 1977, DBS established its Tokyo branch to offer a suite of financial products and services to corporate and institutional clients – marking the bank’s first international foray into an overseas market. In 2016, DBS Securities Japan was formed, expanding the bank’s in-market offerings to include securities.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “
World’s Best Bank
” by Global Finance, “
World’s Best Bank
” by Euromoney and “
Global Bank of the Year
” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “
World’s Best Digital Bank
” by Euromoney and the world’s “
Most Innovative in Digital Banking
” by The Banker. In addition, DBS has been accorded the “
Safest Bank in Asia
“ award by Global Finance for 16 consecutive years from 2009 to 2024.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
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