Hong Kong businesses show growing interest in SE Asia expansion

UOB Hong Kong’s Ricky Ng dives deep into the Business Outlook Survey that shows 39% of Hong Kong firms are aiming for regional growth.

Around 39% of Hong Kong businesses are planning to expand into the Southeast Asian region, according to the latest Business Outlook Survey conducted by UOB.

The poll’s result is like a siren call echoing through the business corridors of Hong Kong, Ricky Ng, head of Wholesale Banking at UOB Hong Kong, said in a recent interview with Hong Kong Business.

“We’re seeing a significant interest among Hong Kong companies, especially larger corporations, in overseas expansion opportunities,” he said.

The survey revealed that 50% of respondents expressed interest in investing in mainland China, whilst 9% were eyeing opportunities in Southeast Asia.

In the grand scheme of overseas expansion, Ng pulled back the curtain on four pivotal pillars: “Ensuring a seamless voyage demands an intimate understanding of the labyrinthine legal landscapes, financial intricacies, cultural tapestries, and the kaleidoscope of local customs.”

These pillars lay the foundation for a triumphant entry into new markets, mitigating risks associated with intellectual property laws, currency fluctuations, and cross-border tax intricacies.

The key considerations for successful overseas expansion, as pointed out by Ng, are centred on understanding legal and regulatory policies, financial considerations, cultural differences, and local customs when expanding into overseas markets.

“Entering a new market requires adapting to new legal and regulatory environments, managing currencies, considering taxation, and understanding cultural differences,” Ng said.

In this regard, he reiterated the need for building strong relationships with local partners and customers by adapting to local business practices. “Forge ahead by weaving your strategies in tandem with the threads of local customs. Establishing enduring relationships hinges on respecting the business rhythms of the host nation,” he advised.

UOB’s resolute commitment to shepherding businesses across foreign shores shines through its Foreign Direct Investment (FDI) advisory unit, acting as a beacon for those navigating the uncharted waters of regional operations setup in Asia.

Ng mentioned that UOB’s collaboration with government agencies, trade associations, and professional service providers enables them to offer customised solutions to corporate customers for cross-border expansion.

“We aim to minimise barriers for companies expanding abroad and help them manage their business and finances effectively,” Ng added.

For preferences, Singapore remains a popular choice for business expansion due to its business-friendly environment, robust ecosystem, and transparent regulations. Thailand and Vietnam also attract businesses with investment incentives and simplified administrative procedures.

“Each ASEAN (Association of Southeast Asian Nations) country has its own advantages, and businesses should consider factors such as legal compliance and test support when choosing a destination for expansion,” Ng explained.

There are pressing challenges, though, that need to be confronted, so UOB has a toolkit of remedie, he said. “Crafting networks in unfamiliar terrain, aligning with diverse cultures, and deciphering local manufacturing intricacies can feel like traversing a labyrinth,” he said.

UOB’s FDI platform functions as a lighthouse, providing navigation assistance by brokering local partnerships.

As a parting shot in the interview, Ng left this promise: “UOB stands as a sentinel, ready to escort businesses not just across borders, but into a thriving ASEAN theater teeming with promise and opportunity.”

CEO Raymond Ong shares the recipe for Etiqa Insurance Singapore’s growth and innovation.

Etiqa Insurance Singapore cannot be denied as a prominent player in the insurance industry as it continues to steadily evolve in terms of insurance solutions since its establishment in 1961.

Under the leadership of CEO Raymond Ong, the company’s growth trajectory and strategic direction is definitely to be envied. But in this interview with Insurance Asia, Ong is all-out in sharing his recipe for sustained growth the Etiqa way.

Leveraging agility in a competitive market

Etiqa’s relative newness to the Singapore insurance scene, established in 2014, has emerged as a strategic advantage for the company, said Ong.

“Being relatively new means we are not bogged down with legacy systems and processes, and we can be agile, and this is something that the team has been able to leverage on in the first phase of our growth,” he said.

He pointed out how the company’s agility has been harnessed to create a multi-channel approach, partnering with Maybank and leading brands like SingTel, fostering a dynamic presence in the market.

Technology with a human touch

Etiqa’s commitment to technological advancement is evident, yet Ong emphasised the significance of balancing technology with personalised assistance.

“Our tagline is to humanise insurance, which means that despite being technology-driven, we believe in a human touch,” he said.

To accomplish this goal, Ong said Etiqa has been progressively deploying AI chatbots and self-service capabilities, ensuring accessibility while retaining human interaction for those who seek it.

Strong shareholder support for growth

With a robust foundation of shareholder support, Etiqa Insurance Singapore is well-positioned to seize growth opportunities.

Along this line, Ong said: “With a focus on international best practices, Etiqa has established itself as a reliable insurance provider in Singapore, fostering customer trust and brand reputation.”

Strategic cross-industry partnerships

Ong added that Etiqa’s commitment to customer-centric partnerships is exemplified by its collaboration with SingTel.

Giving due weight to this move, Ong said they intend to continue to seek more cross-industry partnerships that “align with our core vision of putting customers first.”

In fact, the company’s strategy extends to engaging younger audiences through advanced mobile apps, which provide self-service functionalities and loyalty programs.

Capitalizing on market growth

It cannot be overemphasised that Etiqa’s aspirations align with the promising landscape of the Singapore insurance industry, which is projected to experience near to a 10% annual growth.

“We aim to address the evolving demands for financial protection arising from life-threatening events and diseases, particularly in light of increased awareness brought about by the pandemic,” said the Etiqa CEO, noting emphasis on protection and investment solutions that aligns seamlessly with the growing need for comprehensive coverage.

Innovation and tech advancements

Ong said Etiqa’s commitment to continuous innovation is deeply rooted in the utilisation of technology to enhance customer experiences and streamline operations.

“By leveraging digital solutions, Etiqa aims to provide convenient access to insurance products and services while ensuring a seamless customer journey,” he explained.

It is the company’s dedication to remaining at the forefront of digital transformation that resonates its vital ambition to remain an industry leader.

Navigating industry challenges

Drawing on his extensive experience spanning over two decades in the insurance industry, Ong highlighted the resilience of the sector.

“Throughout my time within the insurance industry, the one thing that stays constant is that the fundamentals of insurance are always there,” he said.

Ong’s perspective on the industry’s role in society and its potential to drive the global ESG (Environmental, Social, and Governance) agenda reflects his deep understanding of its dynamics.

Looking ahead, Etiqa Insurance Singapore’s future is marked by its commitment to innovation and seizing new opportunities.

“We plan to remain at the forefront of innovation to capitalize on new opportunities as they arise,” said Ong, whose excitement reflects the company’s dedication to driving positive societal impact through insurance.

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