DBS Group Holdings 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).
In its release dated Nov 27, DBS revealed that this partnership would enable DBS to provide financing support for SMEs expanding into key Asian markets such as China, Hong Kong, India, Indonesia, Singapore and Taiwan.
For the first time, these SMEs can access multiple markets through a single banking partner.
Through this collaboration, Japanese SMEs can tap into DBS’ regional footprint and will gain access to DBS’s financial solutions, including cross-border payment capabilities, trade financing as well as its professional service providers.
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.
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Tan Su Shan, deputy chief executive officer and group head of institutional banking at DBS, says: “DBS is proud to partner with Japan Financial Corporation to create a multi-regional pathway that empowers Japanese SMEs to tap into Asia’s vast opportunities.”
“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,” Tan adds.
