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Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Financial institutions ready to support JS-SEZ investors, say industry leaders
FMT managing director Azeem Abu Bakar (left), head of FDI advisory in the CEO's office at UOB Chiok Sook Yin (second from left), Affin Hwang Investment Bank's head of research Loong Chee Wei (centre), and Deloitte Malaysia executive director Thean Szu Ping during a session at the Nikkei Forum Medini, Johor 2025, co-organised by Iskandar Investment Bhd in Iskandar Puteri, Johor, yesterday. ISKANDAR PUTERI : Financial institutions are prepared to provide end-to-end support for investors in the Johor-Singapore special economic zone (JS-SEZ), offering a full suite of services to facilitate foreign direct investment, say industry leaders. Chiok Sook Yin, head of foreign direct investment advisory in the CEO's office at United Overseas Bank Ltd, said the bank was well-positioned to 'connect the dots' for businesses entering Malaysia. 'Besides having strong network connectivity, we have financial supply chain management solutions that help investors expand local sourcing and support new suppliers that follow (prominent) companies into Malaysia. 'We're also helping lower the barrier to entry for investors and addressing their concerns before they enter the markets they've targeted,' she said during a session at the Nikkei Forum Medini, Johor 2025, co-organised by Iskandar Investment Bhd here today. Chiok was responding to a question from FMT managing director Azeem Abu Bakar, who moderated the session, on the role that financial institutions play in supporting expansion into the JS-SEZ. 'Johor is an up-and-coming hub where we're seeing a lot of cross-border opportunities and businesses. 'What's going to unlock this potential is the financial aspect, and to make things happen here, the money has to come in,' he said. JS-SEZ was formally established in January through an agreement between Malaysia and Singapore to boost economic connectivity between the state and the republic. It aims to attract 100 projects worth RM100 billion and create about 100,000 jobs in high-value sectors such as manufacturing, digital economy, logistics, clean energy, and tourism over the next decade. Chiok noted that JS-SEZ was attracting strong interest not only from Singaporean companies but from those in Europe and North Asia as well. Meanwhile, Affin Hwang Investment Bank's head of research, Loong Chee Wei, said the bank had evolved beyond financing to help connect stakeholders such as state authorities, manufacturers, and supply chain partners. 'We have strategic agreements to collaborate with key sectors and promote investment, including from Japan to Malaysia. 'We also advise our institutional investors and organise trips to Johor to explore opportunities,' he said. Deloitte Malaysia executive director Thean Szu Ping added that while financial institutions played a key role as facilitators, the government was also stepping up efforts to attract investment, especially in high-tech industries. 'For these industries, a special tax rate of 5% is available for up to 15 years. 'There are also additional incentives for capital-intensive industries, which will receive an investment tax allowance instead of a reduced tax rate,' she said.
Business Times
a day ago
- Business
- Business Times
Stocks to watch: DBS, UOB, Sats, Far East Orchard, GuocoLand, Elite UK Reit
THE following companies saw new developments that may affect trading of their securities on Thursday (Jun 19): DBS : The lender inked a memorandum of understanding with the the Australian Trade and Investment Commission on Wednesday to deepen investment links between Australia and South-east Asia. The two will collaborate to help Australian companies expand into markets in the region, including Singapore, Indonesia, Malaysia and Vietnam. The counter ended on Wednesday 0.5 per cent or S$0.23 lower at S$44.23. UOB : The bank and its wholly-owned subsidiary UOB China have become direct participants in China's Cross-border Interbank Payment System, a wholesale payment system authorised by the People's Bank of China that facilitates the settlement of trading and investments in renminbi. This will enable UOB to provide cross-border renminbi clearing, settlement and payment services to businesses and financial institutions within and outside China, the bank said. Its shares closed on Wednesday 0.3 per cent or S$0.12 lower at S$34.83. Sats : In-flight caterer and ground handler Sats on Wednesday priced US$100 million in fixed-rate notes due Jun 23, 2030 under its US$3 billion multicurrency debt issuance programme. The net proceeds will be used to refinance existing borrowings and the issuance will not result in an increase in the group's overall debt. The notes are expected to be issued on Jun 23 and the interest rate is fixed at 4.648 per cent each year, payable semi-annually in arrear. Sats shares closed flat at S$3.08 on Wednesday. Far East Orchard (FEO) : The group's first private student accommodation development fund secured £96 million (S$166 million) in total committed capital at its closing. The sum includes £70 million raised at the fund's first closing in August last year. The fund focuses on purpose-built student accommodation development opportunities in strong universities across the United Kingdom and has committed more than 35 per cent of the raised equity into two such developments to date. These are a 273-bed project in Glasgow, Scotland and a 239-bed one at Plymouth Grove in Manchester, England. Shares of Far East Orchard closed flat at S$1 on Wednesday, before the announcement. GuocoLand : Its subsidiary, GuocoLand Malaysia, said on Wednesday that its unit GLM Emerald Hills was directed to pay monies to a contractor it is embroiled in a dispute with in an arbitration matter. The current estimated net financial impact in relation to the arbitration is RM 5.5 million. GLM EHills is in consultation with solicitors on the next course of action, including to set aside the arbitration award, and will announce material development in due course. The counter ended on Wednesday 0.7 per cent or S$0.01 higher at S$1.46. Elite UK Reit : The manager on Thursday announced its issue of some 13.6 million new private placement units at an issue price of £0.295 (S$0.51) per unit, bringing the total number of units in issue to around 609.9 million. The new units will commence trading on the main board of the Singapore Exchange at 9 am on Thursday. Units of Elite UK Reit closed Wednesday flat at £0.325.
Business Times
2 days ago
- Business
- Business Times
European, North Asian companies also eyeing the potential of JS-SEZ: UOB banker
[SINGAPORE] The Johor-Singapore special economic zone (JS-SEZ) is drawing interest from companies not just from Singapore, but also from Europe and North Asia. Chiok Sook Yin, UOB's head of foreign direct investment (FDI) advisory in the chief executive officer's office, said on Wednesday (Jun 18) that the bank has noticed a number of European and North Asian companies that are using Singapore as a base to tap into Johor's potential, thus creating new opportunities for the bank. The bank is also seeing increasing possibilities in the 'plus-one' strategy – in that companies are expanding beyond operating in 'China plus one' country into 'Vietnam plus one' and 'Europe plus one', she said. Chiok's remarks came in a panel discussion on the role of regional financial institutions in driving foreign direct investments (FDIs) into Asean, held as part of the Nikkei Forum held in Medini in Malaysia's state of Johor. Also speaking on the panel were Thean Szu Ping, executive director at Deloitte Malaysia, and Loong Chee Wei, head of research at Affin Hwang Investment Bank. The panel was moderated by FMT News managing director Azeem Abu Bakar. The panellists also discussed opportunities and concerns that investors might have when setting up in the JS-SEZ. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Affin Hwang's Loong said that companies which are in the supply chain for FDIs entering the JS-SEZ are finding opportunities there, including those in the electronic manufacturing services and medical devices sectors. He also noted rising investments in data centres, which would benefit construction and property companies which are building these data centre parks and developing modern industrial parks. Furthermore, there are also opportunities for companies in the business of outsourced airline maintenance works, he explained. But Loong noted that government policy changes and talent shortages are key concerns for foreign investors. 'The good thing for Malaysia is that since the new government came into power, it has been very stable – and that is boosting confidence,' he said. As for talent shortages, industries have to offer higher salaries, he added. Deloitte's Thean listed three main considerations for foreign investors to look into when it comes to tax: company structures, transfer pricing and immigration and employment. For example, companies may opt to site their manufacturing plant in Johor and their regional office and research and development centre in Singapore. They would also need to consider transfer pricing – the price that a company's division charges another division for goods and services – because they would then be setting up multiple operations in different jurisdictions, she explained. 'Each country would want to tax an appropriate amount of income in that respective country, so setting up a good or correct transfer pricing policy right from the beginning is very important.' Turning to immigration, she said that companies would likely move staff together with their operations to Johor, so they would need to look into the immigration and tax aspects of these individuals. Thean added that specific companies operating in the JS-SEZ would be granted tax incentives that are more attractive than if they were to operate outside the zone, making it 'very beneficial' for the business environment. Nevertheless, many other factors are in play when an investor wants to invest in a specific country, she pointed out. 'Incentives are usually just the icing on the cake.'
Business Times
2 days ago
- Business
- Business Times
UOB becomes direct participant in China's cross-border clearing and settlement system
[SINGAPORE] UOB and its wholly-owned subsidiary UOB China have become direct participants in China's Cross-border Interbank Payment System (CIPS), the bank said on Wednesday (Jun 18). This is a wholesale payment system, authorised by the People's Bank of China, to facilitate the settlement of trading and investments in renminbi. As at May 2025, it had 174 direct participants and 1,509 indirect participants. Direct participants can open an account in the CIPS; indirect participants have to go through direct participants to handle cross-border renminbi payments and settlements. UOB and UOB China were previously indirect participants. The direct access will enable UOB to provide cross-border renminbi clearing, settlement and payment services to businesses and financial institutions within and outside China, the bank said. UOB clients can enjoy real-time gross settlement and remittance at lower payment and clearing costs. Being on board CIPS also means the bank can expand its trading network by connecting CIPS participants globally and handling cross-border renminbi payments and settlements on behalf of indirect participants. UOB said that its cross-border renminbi payments and trade-settlement flows doubled between 2023 and 2024, and that it expects the use of renminbi for investments, payments and trade to continue to grow. So Lay Hua, UOB head of group transaction banking, expects the direct access will 'significantly enhance' the bank's capability to serve regional clients in their renminbi businesses.
Business Times
2 days ago
- Business
- Business Times
European, North Asian companies also eyeing the potential of JSSEZ: UOB banker
[SINGAPORE] The Johor-Singapore special economic zone (JSSEZ) is drawing interest from companies not just from Singapore, but also from Europe and North Asia. Chiok Sook Yin, UOB's head of foreign direct investment (FDI) advisory in the chief executive officer's office, said on Wednesday (Jun 18) the bank has noticed a number of European and North Asian companies that are using Singapore as a base to tap into Johor's potential, thus creating new opportunities for the bank. The bank is also seeing increasing potential in the 'plus-one' strategy – in that companies are expanding beyond operating in 'China plus one' country into 'Vietnam plus one' and 'Europe plus one', she said. Chiok's remarks came in a panel discussion on the role of regional financial institutions in driving foreign direct investments (FDIs) into Asean, held as part of the Nikkei Forum held in Medini in Malaysia's state of Johor. Also speaking on the panel were Thean Szu Ping, executive director at Deloitte Malaysia, and Loong Chee Wei, head of research at Affin Hwang Investment Bank. The panel was moderated by FMT News managing director Azeem Abu Bakar. The panellists also discussed opportunities and concerns that investors might have when setting up in the JSSEZ. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Affin Hwang's Loong said companies which are in the supply chain for FDIs entering the JSSEZ are finding opportunities there, including those in the electronic manufacturing services and medical devices sectors. He also noted rising investments in data centres, which would benefit construction and property companies which are building these data centre parks and developing modern industrial parks. Furthermore, there are also opportunities for companies in the business of outsourced airline maintenance works, he said. But Loong noted that government policy changes and talent shortages are key concerns for foreign investors. 'The good thing for Malaysia is that since the new government came into power, it has been very stable – and that is boosting confidence,' he said. As for talent shortages, industries have to offer higher salaries, he added. Deloitte's Thean listed three main considerations for foreign investors to look into when it comes to tax: company structures, transfer pricing and immigration and employment. For example, companies may opt to site their manufacturing plant in Johor and their regional office and research and development centre in Singapore. They would also need to consider transfer pricing – the price that a company's division charges another division for goods and services – because they would then be setting up multiple operations in different jurisdictions, she said. 'Each country would want to tax an appropriate amount of income in that respective country, so setting up a good or correct transfer pricing policy right from the beginning is very important.' Turning to immigration, she said companies would likely move staff together with their operations to Johor, so they would need to look into the immigration and tax aspects of these individuals. Thean noted that specific companies operating in the JSSEZ would be granted tax incentives that are more attractive than if they were to operate outside the zone, making it 'very beneficial' for the business environment. Nevertheless, many other factors are in play when an investor wants to invest in a specific country, she said. 'Incentives are usually just the icing on the cake.'
