OCBC to Invest $13 Billion Into UK’s Growth Sectors
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Global Business Magazine- 5 minutes read
Boosting economic growth and driving forward the government’s ‘Plan for Change,’ a new collaboration between the UK government and Singapore’s Oversea-Chinese Banking Corporation (OCBC), one of the largest banks in Southeast Asia, will unlock around $13 billion of investment into Britain.
The UK’s Minister for Investment Baroness Poppy Gustafsson has signed the new MOU with the OCBC Head of Global Corporate Banking Elaine Lam. On Wednesday. The bank aims to finance $13 billion of investment from the Asia Pacific region into priority growth sectors including energy, infrastructure and real estate by 2030.
The UK Minister said that the commitment from OCBC is a major vote of confidence in the UK economy. Not only will it help create more opportunities in real estate and infrastructure, but will also back the country’s clean energy industry, a key growth sector identified in our upcoming Industrial Strategy.
She said that the UK has the most open, stable and connected economy in the world – and the ‘Plan for Change’ will encourage more international companies to invest here, delivering long-term growth that supports good, skilled jobs across the country.
Under the newly expanded Office for Investment, OCBC will collaborate with the government to promote the UK as a hub for businesses, investors and services, attracting huge investments from Asia and supporting the government’s growth mission.
“As one of the largest banks in Southeast Asia, OCBC brings valuable private capital from Asia into the UK. OCBC’s plan to finance $13 billion worth of investment until 2030 signifies the significant opportunities from Asia and is a huge vote of confidence in the UK economy,” the UK minister added.
Historic Ties
Elaine Lam said that the UK and Singapore share historically deep ties and OCBC is proud to play a part in further strengthening the relationship with this agreement.
OCBC’s UK business has grown significantly over the years and its London branch is now the largest in the bank’s international network. The growth has been driven by developments in sectors such as real estate, renewables, energy transition as well as digital and core physical infrastructure, Lam said.
“These align with the priority sectors outlined in the UK’s industrial strategy and we will double down on our efforts to drive further growth in these areas. We are also committed to supporting UK companies that are keen to establish or expand operations in Singapore and Southeast Asia. We look forward to building on our strong track record in the UK to deliver on these goals,” she added.
UK-APAC Trade Relations
The UK and Asia-Pacific trading relationship is worth $163.58 billion with UK-Singapore trade making up $28.56 billion of that.
This new partnership will create more opportunities in key growth driving sectors identified in the government’s upcoming modern Industrial Strategy, and build on the UK’s CPTPP ratification – expected to boost the economy by $2.6 billion a year in the long-term.
The collaboration will also help facilitate further trade and investment with the APAC region, as the UK remains committed to free and fair trade, with a pro-business approach focused on reducing barriers to investment.
The UK government’s new modern Industrial Strategy will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into the economy and hardwire stability for investors, giving them the confidence to plan not just for the next year, but for the next decade and beyond.
