A collaboration between the UK government and one of the largest banks in Southeast Asia is expected to unlock £10bn of investment into Britain, including in the clean energy sector.
Minister for Investment Baroness Poppy Gustafsson has signed the new MoU with the Oversea-Chinese Banking Corporation Limited’s (OCBC) head of global corporate banking Elaine Lam.
Minister for Investment Baroness Poppy Gustafsson said: ”This £10bn 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 our clean energy industry, a key growth sector identified in our upcoming Industrial Strategy.
“We have the most open, stable and connected economy in the world – and our 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 billions of pounds worth of investment 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 £10bn worth of investment until 2030 signifies the significant opportunities from Asia and is a huge vote of confidence in the UK economy.
Elaine Lam said: ” The UK and Singapore share historically deep ties and OCBC is proud to play a part in further strengthening the relationship with this agreement.
“Our UK business has grown significantly over the years and our London branch is now the largest in our 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.
“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.”
The UK and Asia-Pacific trading relationship is worth £126bn.
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 £2bn a year in the long-term, according to the government.
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, it added.