Singapore signs with Mizuho group to lure Japanese investment

Asian Economic News, August 8, 2005

SINGAPORE, Aug. 2 Kyodo

Two subsidiaries of Japan's largest banking group, Mizuho Financial Group Inc., signed a pact with a Singapore government agency Tuesday to woo Japanese companies to invest in Singapore and neighboring Asian countries.

The two-year agreement by Mizuho Corporate Bank and Mizuho Bank on one side and Singapore's Economic Development Board on the other marks the first time the agency has teamed with a private bank to lure investment to Singapore.

The agency hopes to tap both large Japanese companies and smaller enterprises using Mizuho's huge customer base and extensive branch network in Japan.

''With the (pact), Mizuho will tap into its client base and act as a conduit for strategic trade enquiries, consultation and contact with the (board) for Japanese companies that are interested to expand their operations in Singapore or the region,'' a joint statement said.

Mizuho set up an Asia Corporate Banking Division in Singapore in May to boost its business in Asia. The new division will offer professional banking services such as syndicated loans and advice on doing business in Asia.

Japan was the second largest foreign investor in Singapore last year, pumping about 77 billion yen in direct investment into Singapore, double the amount in 2003.

About 3,000 Japanese companies are based in Singapore, which signed a free trade agreement with Japan in 2002.

The agency's move to link with Mizuho comes at a time when Japanese companies are refocusing on Southeast Asia to diversify their overseas investments, which have been flowing mainly to China in recent years.

The region has regained some of the economic dynamism lost during the 1997 Asian financial crisis that shattered Japanese business confidence in the region and induced many companies to shift to China.