Stepping up to the plate
Business Times - 27 Jul 2006

Hong Leong Finance president Ian Macdonald tells CONRAD TAN why he thinks it's important for SMEs to look beyond our shores, and why they deserve to be helped, despite the risks of doing so.

SUCCESSFUL companies can leverage their skills and expertise by taking their products and services to larger markets. Overseas expansion can be a challenge for the SMEs. Different countries have different cultures, laws and ways of doing business.

In this context, the Singapore government has been very supportive of our local SMEs and has introduced many programmes and initiatives to help them gain access to overseas markets.

With its extensive free trade agreements (FTAs) network, tariff and non-tariff barriers are eliminated, increasing the competitiveness of our local companies and helping them to enter emerging markets. FTAs also offer protection, such as guarantees on repatriation of companies' capital and profits when they venture abroad.

Hong Leong Finance also started out as an SME and we recognise the challenges faced by such companies. We've helped many entrepreneurs achieve their goals. Smaller companies have high growth potential and are more nimble than large companies, so it is worthwhile to assist in their development. But SMEs need to focus on their own business and with their limited resources, they may not be well versed in all the financial aspects.
That's where we come in, to give advice, assistance and good financing support. Building up relationships and showing trust in SMEs encourages future business and we hope to share in the growth of the companies we help.
We've been a staunch supporter of the various government schemes assisting SMEs and an active participant in the ACE movement since its inception. We've expanded our scope of activities to include underwriting of shares on Singapore Exchange, third-party insurance distribution and foreign exchange services.

This means we can now underwrite the sales of shares and manage IPOs for SMEs, sell life and general insurance to customers and also assist SMEs in their foreign exchange hedging requirements. We also offer a whole suite of services from corporate loans, corporate finance and wealth management to SMEs to help improve their cash flow and raise the capital they need for overseas expansion and investments.'

"Hong Leong Finance also started out as an SME and we recognise the challenges faced by such companies.' - Ian MacDonald, Hong Leong Finance president