Latest news with #UnitedOverseasBank
The Star
a day ago
- Business
- The Star
Bank Negara lowers growth forecast
PETALING JAYA: Bank Negara believes the Malaysian economy is facing external headwinds from a 'position of strength', as it announces a new gross domestic product (GDP) growth forecast of between 4% to 4.8% for Malaysia. The latest projection is a fractional downgrade from between 4.5% to 5.5% previously, although the central bank emphasised that latest indicators, including advanced estimates for the second quarter growth, continue to point towards sustained strength in economic activity. While marginal, the lower forecast is nonetheless noticeable, in the context of global growth outlook that is being affected by shifting trade policies and uncertainties surrounding tariff developments. Furthermore, the renewed projection has also led economists to chorus that it is crucially vital for Malaysia to secure a beneficial tariff position with the United States before Aug 1, in light of what Vietnam and Indonesia have done, to reinstate the former's more favourable trade position. In a statement released yesterday, Bank Negara stressed that resilient domestic demand will continue to support growth going forward, as decent labour market conditions, particularly in domestic-oriented sectors, and policy measures will continue to underpin private consumption. The central bank acknowledged that the updated growth projections account for various tariff scenarios, ranging from a continued elevation of tariffs to better trade negotiation outcomes. 'This forecast remains subject to uncertainties surrounding the global economy, both on the downside and upside,' it said. Senior economist at United Overseas Bank (UOB) Julia Goh perceives that the central bank's new position on Malaysia's growth prospects is the impact of a prolonged uncertainty surrounding the tariff situation. She said Bank Negara has also taken into account the slower growth trajectory that is seen in the first half of 2025 (1H25) and projected moderation in 2H25. 'We continue to see scope for a potential 25 basis points (bps) overnight policy rate (OPR) cut in 4Q25, though it will depend on the extent of downside risks from trade and slower export demand, as well as effects of domestic policy reforms and fiscal expansionary measures in the upcoming budget,' she told StarBiz. Professor of economics at Sunway University, Dr Yeah Kim Leng, recognises that weakening global demand has softened Malaysia's external outlook, reducing earlier expectations of stronger contribution from external trade and foreign investment to Malaysia's growth. Nevertheless, he noted that domestic consumption and investment, coupled with higher government spending are expected to underpin Malaysia's GDP for 2025, before adding that the GDP growth of 4% to 4.8%, if realised, is still commendable in light to the strong headwinds facing the global economy amid geopolitical turbulence and trade war uncertainties. Together with a better than expected 4Q25 GDP out-turn of 4.5% amid low inflation, Yeah reckons Bank Negara is in a comfortable position to provide the necessary financial and monetary conditions to support continuing growth as well as ensure a conducive environment to anchor structural reforms that will further strengthen consumer and investor confidence. Asean economist at HSBC, Yun Liu, opined this downward revision of GDP growth forecast for this year from Bank Negara is largely expected, and the magnitude of the adjustment is not as significant as other regional peers. Seeing the glass as half full, she views GDP growth in 1H25 to be 'decent', before commenting that while a large part was thanks to front-loading trade activities before the higher levies come into effect, other sectors, particularly services, had remained robust. Of interest, and in variance from Goh's stance, Liu said despite growth being the primary concern in Bank Negara's reaction function, she believes the 25bps rate cut in July by the central bank is a one-off insurance cut to pre-empt possible negative spillovers to the economy, and not to open the door for easing. 'We do not expect another rate cut in this easing cycle, although a lot would depend on the trade negotiations ahead of the Aug 1 deadline. 'It is not only about the absolute tariff level Malaysia faces, but also about the relative tariff rate between Malaysia and regional competitors,' she told StarBiz. Doris Liew, an economist specialising in South-East Asian development, concurs that Malaysia's trade performance has been partly affected by global tariff tensions and supply chain uncertainties, particularly involving the United States. In response to these concerns, she observed that some exporters have front-loaded shipments to the United States, a trend that may taper off in 2H25. Liew said: 'However, growth in 1H25 has remained moderate, staying below 4.5%, and is noticeably slower than the same period last year. 'This suggests that front-loading alone has not significantly bolstered economic performance, and a subsequent slowdown in export activity could weigh further on overall growth momentum.' She cautioned that the United States remains a critical trade partner, accounting for around 20% of Malaysia's exports, and as such, preserving lower tariff access is thus important for maintaining Malaysia's comparative advantage in key sectors. 'If global trade headwinds persist, further monetary policy easing may be on the horizon. With inflation remaining relatively stable, Bank Negara retains policy space to support growth through rate cuts without stoking inflationary risks,' Liew pointed out. While economist Geoffrey Williams also believes that the growth downgrade by Bank Negara has been widely signalled, he suspects that that GDP growth will be closer to 4%, down by at least 1% year-on-year. 'This is mostly due to tariffs. Although total trade and exports have been strong, it is net trade that matters for growth and this has been squeezed very much by front-loading and volatility due to the delayed tariff negotiations,' he said. Like Liew, Williams thinks it is essential for Malaysia to secure a good tariff deal to remain competitive against other countries such as Vietnam and Indonesia. The economist estimated the impact of a less-than-favourable tariff deal would result in a growth decline of 1%, or RM20bil, and Malaysia should do its best to avoid such an outcome, as this would be the cost of protecting Malaysian markets, or maintaining bumiputra preferences for example. 'The OPR cut should keep growth within the new forecast range so there is no need for further cuts,' said Williams, in agreement with HSBC's Liu. Separately, Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour said the country's economy remains resilient despite global uncertainties, which is in part, the outcome of structural reforms that the central bank has undertaken over the years. 'The sustained strength in economic activity and moderate inflation provides a supportive environment to pursue structural reforms for a more resilient and competitive Malaysia in the future,' he said.
Yahoo
5 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of United Overseas Insurance Limited
SINGAPORE, July 25, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of "aa-" (Superior) of United Overseas Insurance Limited (UOI) (Singapore). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect UOI's balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management. In addition, UOI's ratings factor in rating enhancement from the company's ultimate majority ownership by, and importance to, United Overseas Bank Limited (UOB), a leading banking corporation in Asia. UOI's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is expected to remain comfortably at the strongest level over the medium term, as measured by Best's Capital Adequacy Ratio (BCAR). UOI has demonstrated good internal capital generation over time. The company's shareholder equity increased by 5.9% in 2024, supported by unrealised investment gains and good earnings retention. AM Best views UOI's investment portfolio to have moderate risk, comprising mainly high-quality fixed-income securities, cash and deposits, albeit with a moderate exposure to equity investments. In addition, balance sheet volatility arising from large loss and catastrophe losses is mitigated through reinsurance, and the company's credit risk is mitigated by a reinsurance panel that consists of well-rated counterparties. AM Best views the company's operating performance as very strong, supported by exceptionally strong and consistent underwriting results. UOI's disciplined underwriting approach and access to a defensible fire segment of the Singapore non-life insurance market have contributed to consistently stable earnings. The company's underwriting performance remained highly profitable in 2024, driven by its strong insurance revenue growth. Investment returns remained favourable and continued to be an important contributor to overall earnings. As the sole insurance subsidiary of UOB, UOI benefits from cross-selling insurance policies to UOB customers. The company's affiliation with its banking parent enables good access to business through the bancassurance channel. UOI's underwriting portfolio remains focused predominantly in Singapore, whereby approximately three quarters of gross premium is sourced domestically. Regional business expansion over the medium term is expected to be aligned with opportunities arising in connection with the group's strategy. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Susan Tan Senior Financial Analyst +65 6303 5023 Chris Lim, FCII, CFA Associate Director, Analytics +65 6303 5018 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
H1 2025 APAC syndicated loans market overview
Greater China Greater China syndicated loans issuances concluded at USD 82.9 billion in H1 2025, marking a 34.5% decrease in volume year-on-year. Borrowers are cautious in raising funds, with over half of the loans issued went into supporting refinancing efforts, sitting at 55% of the total volume. Meanwhile, project finance and general corporate purposes came in at 14% and 12%, respectively. As for capital-related expenditures, the spending momentum did not sustain from last year, issuances fell sixfold. In terms of currencies, HKD gained the spotlight, with 34.8% of Greater China loans volume denominated in HKD. Worth noting, there was also an increase in the popularity of issuing in Euros in H1 2025. Especially in the Offshore China Loans market, the popularity of Euro-denominated loans accounted for around 40% of the volume. The largest deal signed in H1 2024 was issued by Fengmiao Wind Power with SMBC as the green loan coordinator. It was signed with a dual-currency TWD-EUR in a 9-tranche structure, totaling TWD 102.9 billion (USD 3.9 billion equivalent). The deal was also considered the second largest APAC ex-Japan Green UoP deal in H1 2025. Syndicated borrowing amongst ASEAN borrowers in H1 2025 were not in line with the trend of dropping volume across the broader APAC ex-Japan region, marking an increase of 25.3% year-on-year, totaling USD 42.9 billion. ASEAN Borrower loans were primarily issued for general corporate purposes (24%) and refinancing (23%), while issuance for real estate and sustainable purposes rose to 16% and 9%, respectively. The share of refinancing has declined, reflecting a growing focus on ESG, long-term infrastructure, and development financing. The share of USD-denominated loans to ASEAN borrowers has dropped from 48% to 27.5% year-on-year, as borrowers increasingly diversify into other currencies like SGD, which now leads at 43.5%. This shift is largely driven by the weakening of the U.S. dollar—spurred by recent U.S. tariff policies and evolving global monetary dynamics—making USD borrowing less attractive. The largest ASEAN loan signed in H1 was to Marina Bay Sands integrated resort for SGD 12.0 billion (USD 9.4 billion equivalent). It is to finance the expansion of the Marina Bay Sands Resort, including the construction of a new fourth tower. It is signed with a 3-tranche structure with over 26 banks participating in the deal. Among the mandated lead arranging banks, United Overseas Bank claimed the top spot, followed by DBS and Oversea-Chinese Banking Corp, with market shares of 8.73%, 8.0%, and 7.94%, respectively. Among the bookrunners, United Overseas Bank ranked top, followed closely by BDO Union Bank, and DBS, making up market shares of 10.59%, 9.84% and 8.32%.
Finextra
11-07-2025
- Business
- Finextra
What sustainability-linked bank accounts are out there?
1 Like 4 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Due to the increasing pressure on big banks to meet net zero goals and fulfill environmental, social, and governance (ESG) requirements, a wave of sustainability-focused banking services have been released, seeking to help integrate green initiatives into consumers' everyday lives. As Scott Hamilton detailed in an earlier Finextra long read on ESG-linked accounts, there are several incumbents that offer such services, which align with the United Nations (UN)'s Sustainable Development Goals (SDGs) – including Standard Chartered, CIBC, and United Overseas Bank. However, the new administration in the United States has initiated a row-back in diversity, equity, and inclusion (DEI) and ESG initiatives and requirements for domestic companies – with global repercussions. Despite this push against sustainable initiatives in banking, there has been a pickup in the availability of sustainable bank accounts for users. McKinsey research found that sustainable banking products are attractive to consumers regardless of income levels and types of communities. The research found that 40% of US consumers are interested in using climate-linked financial products, and of those interested, two in three would place 40% of their savings or credit card spending into a green retail product. Sustainable bank accounts – an increasingly popular service – are not exclusive to companies. Such products integrate sustainability directly from the transactions being made through that account – such as tracking carbon footprints, making sustainable banking choices, and allocating funds for green initiatives. So, what bank accounts of this kind are out there for climate-conscious, digitally savvy users looking to change the way they bank? Are they truly sustainable? There are various parameters that are used to measure sustainability and ethical banking, and different methods to accurately quantify ESG are still in development. The following banks are transparent about their emissions and which industries they lend to, and contribute to initiatives that promote climate-consciousness and ethical banking. Triodos Bank Triodos Bank is a B Corp-certified European bank headquartered in the Netherlands. The bank has an ethical ethos, publishing information on every organisation that it lends to – excluding those in the oil, gas, arms, tobacco, and deforestation industries. Triodos focuses its lending on renewable energy and joined the Fossil Fuel Non-Proliferation Treaty in 2023, to fully phase out fossil fuels. The bank has set 2035 emissions reductions targets that were validated by the Science-Based Targets Initiative (SBTi). Triodos offers ethical current and savings accounts for users, as well as Ethical Savings Bonds. Banco Pichincha This Ecuadorian bank headquartered in Quito prioritises ESG in its offerings. Banco Pichincha supports businesses with sustainable principles. The bank was ranked in the top 100 of 500 on Time's list of World's Best Companies in Sustainable Growth 2025. In February this year, the bank received a USD $137 million loan to fund green financing and gender equality in access to credit from CAF. Banco Pichincha offers personal bank accounts for users in Ecuador, and online bank accounts for Ecuadorians living abroad to send money back, which can be opened in the US. The City Bank Limited Bangladesh-based bank has over 1.7 million customers and has joined the UN's Net-Zero Banking Alliance. Named one of the top sustainable banks in Bangladesh for the last three years, City Bank is actively engaged in green refinance and core banking sustainability. City Bank offers a Green Savings Account to Bangladeshis, for which trees will be planted for every account and available funds will be invested into sustainable projects. Amalgamated Bank New York City-based Amalgamated Bank is a certified B Corp that operates fully on renewable energy and net zero emissions. The bank is Fossil Free certified and 23% of their loans fund climate solutions. The goal of the bank is to make green living easier, which is why they offer homeowners special credit to install solar panels. The Amalgamated Bank Give-Back Checking account matches half of the interest earned and donates it to one of their partnered charities, which include an array of social activism organisations. Climate First Bank Florida-based Climate First Bank is certified B Corp and Fossil Free. The bank was built on belief that banking can be climate-conscious and sustainable. The bank's Climate First Bank Pride Banking checking account allows people to use their chosen name and pronouns to open an account – and will donate $100 to an LGBTQ charity if the user sets up a direct deposit, worth at least $750. Along with Amalgamated Bank and Areti Bank, Climate First is one of three remaining US members of the UN's Net Zero Banking Alliance. Ecology Building Society Ecology Building Society is a UK-based bank focused on creating a climate-focused, green banking experience that is committed to environmental sustainability. The bank has pledged not to fund fossil fuels, mining companies, the arms trade, and deforestation. Ecology offers current and savings accounts that fund energy efficient homes, clean energy, and community projects. The bank also offers residential and commercial mortgages for those looking to make eco-friendly self-builds and refurbishments, and community housing projects. Nationwide Building Society Nationwide does not lend to the fossil fuel industry and is committed to be gas-free by 2030 and net zero by 2050. The bank sources 100% of its electricity from renewable energy. The UK-based bank discloses all carbon emissions associated with mortgage, commercial real estate, and registered social lending – and has set science-based targets to reduce them. To promote sustainable housing, Nationwide has the Green Additional Borrowing mortgage product with 0% interest, and offers homeowners £500 cashback if they purchase a home with a high Energy Performance Certificate score. The Co-operative Bank This high-street UK bank is committed to renewable energy and biodiversity protection. It offers green bonds and loans to make the UK more energy efficient. Focusing on funding SMEs, the bank does not support any form of fossil fuel production and ethically reviews not only the firms it funds, but their parent companies as well. In 2024, the bank was acquired by Coventry Building Society, though in the press release the bank clarified that products and services will remain the same for their customers. The bank offers a variety of accounts, including a student account, current account, an account for Ukranian refugees, and the Cashminder account for people with no credit history or a low credit score. Vancity Community Investment Bank Vancity is a Canadian bank based in Vancouver. The organisation achieved carbon neutrality in 2008 and has set net zero goals for 2040. The bank does not invest in fossil fuels and supports clean energy initiatives. Vancity's profit-sharing program returns 30% of its profits to members to invest in initiatives such as climate change mitigation and financial literacy. The bank also focuses on backing climate action projects to improve the local community, such as funding a hydrogen fuel network and promoting renewable energy solutions. In 2023, Vancity added an emission tracking feature to their credit cards so that users could track their carbon footprint through their purchases. Moving forward The sustainable finance revolution is here, and big banks need to be putting in the work to ensure SDGs are being met. Since its inception in 2021, membership to the Net Zero Banking Alliance has increased to 127 banks in 44 countries to set science-based net zero targets for 2030 – more and more banks are stepping up to the task. While there are several banks now that offer bank accounts that integrate sustainability into payments, there is definitely room for more growth. All banks should not only offer sustainability-linked accounts, but embed green and clean energy practices into their retail infrastructure.
Bangkok Post
09-07-2025
- Business
- Bangkok Post
Frasers expands its regional presence
Frasers Property, the Singapore-based property developer and management company of the Sirivadhanabhakdi family, is deepening its presence in Thailand, Vietnam and Singapore to build a resilient portfolio amid an increasingly uncertain global environment. Panote Sirivadhanabhakdi, group chief executive, said the trade environment is increasingly uncertain and conditional, prioritising domestic value creation and compliance with stricter origin rules. Thailand, Southeast Asia and Asia more broadly stand to benefit selectively from this transformation, he said. "In the longer term, we are optimistic about the growth drivers, including strong demographics, urbanisation and a rising middle class, all of which support long-term consumer demand and urban development, even as near-term uncertainties in the trade and geopolitical landscape introduce new layers of complexity and cost," said Mr Panote. But to realise this potential, stronger local ecosystems and integrated logistics will be needed, he said at a regional conference co-hosted by United Overseas Bank (UOB). "Our strategy is built on addressing long-term fundamentals, and we are deepening our presence in our key markets such as Thailand, Vietnam and Singapore to unlock more opportunities," said Mr Panote. The focus is on resilient asset classes amid ongoing macro-uncertainty, particularly for the industrial and logistics sectors, where growing emphasis on domestic production and traceable supply chains reinforces the need for real estate partners with scale, transparency and strategic reach, he said. Frasers Property is well-positioned to evolve with the supply chain recalibration, with roughly 3.8 million square metres of international-grade industrial and logistics warehouses operating in Thailand, Vietnam and Indonesia. In February, Frasers and joint venture partners unveiled ARAYA – The Eastern Gateway, which positions Thailand for the long term in terms of capturing opportunities from trade shifts, said Mr Panote. Spanning more than 4,600 rai, he said the estate provides a fertile seedbed of growth for the semiconductor, electronics, electric vehicle, pharmaceutical, logistics and data centre segments. "We view our role as a real estate investor-developer-manager to be more than just creating spaces. It is about fostering the right environment and playing field for companies and communities to grow and flourish," said Mr Panote. "Southeast Asia's story is still unfolding, and we believe it remains a compelling destination for investment and impact." A diversified presence across the region in industrial and logistics, residential, retail and commercial enables Frasers to contribute to its progress in several facets, helping to shape connected, liveable and sustainable cities of tomorrow, he said. "We remain mindful that success in the new global trade landscape will depend on adaptability, ecosystem resilience and the ability to create genuine local value," said Mr Panote. Last week, Frasers and UOB announced a strategic memorandum of understanding to jointly support industrial investment, trade promotion and financial facilitation for businesses expanding across Thailand, Vietnam and Indonesia. Under the agreement, Frasers Property Industrial Thailand provides general support for businesses investing in industrial space, including offering guidance on local policies, regulations and potential investment opportunities. UOB Thailand is offering financial solutions, including project financing, trade facilities and treasury services, leveraging its regional banking network to support cross-border investments. Frasers operates more than 3.48 million sq m of industrial facilities across Thailand, housing 946 factories and warehouses nationwide. In Vietnam and Indonesia, the company holds 140,000 sq m and 150,000 sq m of industrial space, respectively.
