OCBC

OCBC: Group forecasts that its lending to Singapore SMEs going to Iskandar will triple in the next two years, as local SMEs looking to reduce expenses in a combination of lower land and labour costs compared to Singapore. Loan assets doubled from 2011 to 2012 (albeit from a low base), as Group targets another RM0.5b (S$202.9m) growth in assets by the end 2013, and 3x growth in the next 2 years. To reiterate, the recent significant Singapore government investment into Iskandar, as well as participation by CapitaLand (which spearheaded development in China and Vietnam back when those markets were just beginning to open up), may pave the way for more private sector involvement, eventually securing success for the Iskandar project. Meanwhile, a key risk remains as the Msian elections are currently ongoing.