UOB to double loans to foreign firms

KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) aims to double its corporate loans to foreign companies in Malaysia within the next three years.

The growth is expected to be driven by the fast-growing volume of foreign direct investments (FDIs) and increased intra-regional trade flows into Malaysia.

The bank has established an FDI Advisory Unit to help foreign companies expand their businesses into the country, UOB Malaysia said in a statement.

Malaysia currently attracts 10 per cent of the total FDI inflows from intra-regional trade in the Southeast Asian region.

UOB Malaysia's FDI Advisory Unit's priority is to focus on Singapore's mid-sized small and medium enterprises (SMEs) which are expanding their businesses into Iskandar Malaysia.

According to the UOB SME Survey 2013, Malaysia is the second most preferred country by Singapore businesses, after Indonesia, for expansion purposes.

UOB Malaysia chief executive officer Wong Kim Choong said Iskandar Malaysia's lower cost of land, skilled labour resources and special tax incentives are attracting companies from across the causeway.