CashNews.co
DBS will provide financing and professional services support.
DBS and the Japan Financial Corporate (JFC) have signed a memorandum of understanding to help Japanese small and medium-sized enterprises (SMEs) expand into Asian markets.
DBS will provide financing support for SMEs to expand to six markets: China, Hong Kong, India, Indonesia, Singapore, and Taiwan.
Five of these markets are part of the eight Asian destinations that Japanese businesses are eyeing for future growth, according to a survey by the Japan External Trade Organization (JETRO), which also includes Malaysia, Thailand and Vietnam.
The SMEs only need a single banking partner to access multiple markets.
SMEs will gain access to DBS’ suite of 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.
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.
“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,” said Tan Su Shan, deputy CEO and group head of institutional banking, DBS.
“Together, we are building bridges that foster trade, business connectivity and sustainable growth for businesses of all sizes,” Tan added.