DBS and Japan Finance Corporation (JFC), a financial institution wholly owned by the Japanese government, have signed a memorandum of understanding (MOU) to support the regionalisation of Japanese small and medium-sized enterprises (SMEs). The partnership enables DBS to provide financing support for SMEs expanding into key Asian markets – China, Hong Kong, India, Indonesia, Singapore and Taiwan. For the first time, these SMEs can access multiple markets through a single banking partner.

Through this collaboration, Japanese SMEs can tap into DBS' regional footprint and deep local expertise across the bank's six core markets in North Asia, South Asia and Southeast Asia. They will also gain access to DBS' suite of innovative financial solutions, including digital cross-border payment capabilities and trade financing, as well as its ecosystem of professional services providers offering legal, accounting and human resource support.

To further facilitate their expansion, JFC will extend standby letters of credit, which will enable Japanese SMEs' local subsidiaries to secure long-term, local currency-denominated funding. Under this programme, JFC's standby letter of credit acts as a guarantee, facilitating smooth access to funds through DBS. Together, this partnership holds the potential to enhance business connectivity between Japan and the rest of Asia, fostering a stronger presence for Japanese SMEs across the region.

Tan Su Shan, Deputy Chief Executive Officer and Group Head of Institutional Banking, DBS, said:“DBS is proud to partner with Japan Finance Corporation to create a multi-regional pathway that empowers Japanese SMEs to tap into Asia’s vast opportunities. 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 for Japanese businesses eyeing future growth. This MOU represents our commitment to helping Japanese SMEs regionalise and diversify by providing them with the financial and strategic support they need to grow across Asia with confidence. Together, we are building bridges that foster trade, business connectivity and sustainable growth for businesses of all sizes.”

Kenzo Yoneda, Senior Managing Director and General Manager, SME Unit, JFC, said: “With the business alliance with DBS, we have established a strong foundation to support our customers' financing in DBS' six core markets. This will enable our customers to raise funds smoothly overseas and take advantage of DBS' financial services and extensive overseas network. We are very much looking forward to this business alliance leading to further growth and development of our customers.”

This partnership builds on DBS’ longstanding commitment to Japan as an important market to drive innovation and growth. In 1977, DBS established its Tokyo branch to offer a suite of financial products and services to corporate and institutional clients – marking the bank’s first international foray into an overseas market. In 2016, DBS Securities Japan was formed, expanding the bank’s in-market offerings to include securities.