DBS and Japan Finance Corporation (JFC), a state-owned financial institution, have signed a memorandum of understanding to help Japanese SMEs expand in Asia.
This partnership, the first of its kind, allows SMEs to access six key markets: China, Hong Kong, India, Indonesia, Singapore and Taiwan, through a single banking partner.
Collaboration leverages DBS‘ regional expertise and services, including digital cross-border payments, trade finance and connections with professional service providers offering legal, accounting and HR support.
JFC will issue relief letters of credit, helping SMEs obtain long-term local currency financing through DBS, thereby facilitating smoother financial access for subsidiaries in these markets.
The initiative builds on DBS’s established ties with Japan, dating back to 1977, when the bank opened its branch in Tokyo.
The establishment of DBS Securities Japan in 2016 further expanded its domestic offering to include securities-related services.
Tan Su Shan, Deputy Managing Director and Head of Institutional Banking Group at DBS, said:
“A recent survey by the Japan External Trade Organization (JETRO) highlights that eight Asian markets – China, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand and Vietnam – are among the top destinations Japanese companies planning for future growth.
This MoU represents our commitment to helping Japanese SMEs regionalize and diversify by providing them with the financial and strategic support they need to grow confidently in Asia.
Kenzo Yoneda, Senior Managing Director and Managing Director of JFC’s SME Unit, said:
“Through the business alliance with DBS, we have established a strong foundation to support the financing of our customers across DBS’s six core markets.
This will enable our clients to smoothly raise funds overseas and benefit from DBS’s financial services and its extensive overseas network. We very much look forward to seeing this business alliance lead to further growth and development for our customers.
Cover image: Tan Su Shan, Deputy CEO and Group Head of Institutional Banking, DBS, and Kenzo Yoneda, Senior Managing Director and Managing Director of the SME Unit of Japan Finance Corporation, signed the MoU.