How UOB partnered with Oceanus Group on its journey to become a food security expert in Asia
The Southeast Asian bank leverages its regional presence, connections and business expertise to enable long-term success for SMEs
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UOB partners with Oceanus Group on its journey to become an Asian food security expert
With its strong franchise in the Asean bloc of Southeast Asian nations and extensive range of services, United Overseas Bank’s (UOB) Group Wholesale Banking (GWB) division has much to offer businesses looking to leverage opportunities for growth in some of the world’s most dynamic markets.
A winning combination of sector expertise, deep local knowledge and strong regional connectivity make it possible to provide companies with strategic advice and tailor-made solutions at every stage of the business cycle.
UOB partners with its clients to continually progress towards sustainable growth in various ways, including timely investment in upgrades or acquisitions, or new forays into cross-border trade within the Asean region as well as with Greater China and beyond.
It also helps small and medium-sized enterprises (SMEs) navigate economically difficult times before setting them on the path to success with a firmer financial footing.
UOB has been doing so for decades, and its key to helping clients succeed is by gaining a deep understanding of their businesses. That is how it builds the kind of long-term relationships which create value for companies and communities, and sustains the continuous process of adapting to change and identifying opportunities for growth.
One prime example is the bank’s long-standing relationship with Oceanus Group, a Singapore-headquartered food technology company founded in 1998.
Originally specialising in abalone farming, Oceanus now has a diverse business portfolio built on four pillars: food production, distribution, services and innovation.
It operates 36 subsidiaries across the world, including in mainland China, Hong Kong and countries across Southeast Asia. And, branching out further, the group was recently appointed as exclusive distribution agent in China for Treasury Wine Estates’ Penfolds, one of Australia’s best-known wine brands.
Oceanus’ stated ambition is to be the leader in Asia for food security, which is a growing challenge faced around the globe. As the world’s population continues to rise, there will need to be a 70 per cent increase in food production by 2050, according to a report by the United Nations’ Food and Agriculture Organization (FAO). Furthermore, the FAO estimates that about 14 per cent of the food produced globally is going to waste due to problems such as inadequate supply chain management and infrastructure.
Oceanus is tackling these issues by offering food procurers and suppliers solutions powered by astute deployment of the latest technology, which monitor internal processes, inventory management, logistics, payment and other aspects of these operations in order to optimise the flow of food trade around the world.
The company’s progress towards those goals has been helped immensely by working closely with UOB as its principal bank over the past few years. This partnership underpinned Oceanus’ successful expansion into China thanks to the customisation of a structured cross-border trade facility, which made it easier and more efficient to secure agreements and finance deals.
Oceanus has enhanced its financial operations by leveraging UOB Infinity, a digital banking platform for cash management and trade finance services. This integrated platform has helped the company streamline payments and trade finance flow, resulting in faster and more efficient business processes. By using UOB Infinity’s comprehensive end-to-end solutions, Oceanus has made improvements in financial control and operational efficiency.
Each of these factors has cemented the relationship between Oceanus and UOB, which, through the careful allocation of working capital and loans, helped the company grow the size of its trade portfolio by more than six times in recent years. That marks quite a turnaround from a not-too-distant past when Oceanus was fending off creditors and in deep financial trouble.
“When I joined 10 years ago, the company was struggling to survive; it was technically insolvent,” recalls Peter Koh, group CEO of Oceanus Group. “It was a difficult time. The banks were running away from us – everyone was. But we had one partner who came forward; UOB took a different view.”
Sitting down with Eric Lian, the managing director and head of group commercial banking at UOB, the plan was to come up with both short- and longer-term plans – first to stabilise the company, then to develop and execute a restructuring plan that would enable Oceanus to build steadily on a solid foundation.
“When I met Eric, he was not just talking about money or business. Instead, he was interested in learning about the DNA of the company and what we wanted to be,” Koh says. “For us, it meant hope – that someone from the outside actually believed in what we were doing.”
An immediate challenge at the time was to diversify, so as to avoid the inherent risks of relying on just one product or revenue from a single country. Now, several years later, the next phase of growth will include digitalising wherever possible and keeping faith in a banking relationship that has worked so well.
“Doing business with SMEs is not so easy,” Lian says. “You need to spend some time understanding the market and be committed to staying through the business cycle. I remember that Peter shared his vision with a lot of passion, and it resonated well with us. We are now part of Oceanus’ growth story. That is quite an achievement.”
Lian believes this sense of close partnership with clients plus the bank’s ability to offer effective strategies and solutions are what set UOB apart from its competitors.
“Many of our clients have been banking with us for 30, 40, 50 years. Maintaining these long-term relationships is very important to us,” he says. “This is something that we are very proud of.”
In Oceanus’ case, Lian says witnessing its comeback story first-hand is meaningful on many levels. “Seeing the company’s transformation is a testimony of the relationship between UOB and Oceanus. And knowing that you can make a difference for the company gives a sense of personal satisfaction, too.”
In addition to offering financial solutions for clients, UOB also focuses on developing next-generation business leaders who are poised to succeed with their family businesses and continue to grow them in the future. In 2019, the bank launched The Business Circle, a programme that features regular networking events for young entrepreneurs and executives from different sectors across the region to exchange knowledge and explore opportunities for collaboration.
“We started the programme in Singapore, and we have since hosted networking events in Malaysia, Thailand, Indonesia and China to bring a younger generation of leaders together,” Lian says. “We hope forward-looking programmes and initiatives like these can support and inspire them.”