SINGAPORE, MALAYSIA: ING TAKES PART IN THE BELGIAN ECONOMIC MISSION

Since the 1980s, ING is continually expand-ing its global network. It is now present in40 countries. "In Asia, you can find us inChina – including Hong Kong –, India, thePhilippines, Japan, Indonesia, Vietnam,Mongolia, Thailand… and of course Malaysiaand Singapore," says Sébastien D'Hondt,

ING Commercial Banking's Head ofCorporate Clients Belgium. "Asia is in fullgrowth - at least 5% per year, which meansthat the Asian economy will double in sizeevery 14 years." In addition to its offer of payment and finan-cial services, ING can intervene in the financ-ing of foreign trade: guarantees, documen-tary credits, etc. For all its professional cus-tomers who want to strengthen their inter-national presence, it applies the same strate-gy, relying mainly on its relationship man-agers. "These are key people in our struc-ture," Sébastien D'Hondt states. The rela-tionship managers conform to the demandsof each company, offering their expertise

according to its needs. They are natives orhave been residents for several years, so theyknow the strengths and challenges of thecountry. In addition to this valuable localexpertise, they often act as a 'liaison whoopens doors', letting their enterprise cus-tomers benefit from their network.According to the entrepreneurs present inthe region, one should be aware that theAsians do not await us. "Thus the impor-tance of joining a mission, which increasesthe visibility of our country, and greatly facili-tates contacts", resumes Sébastien D'Hondt,who will himself attend this trip. Examples ofBelgian companies who have chosen to relo-cate to Singapore include Solvay and Sibelco,

"well placed to take advantage of theincrease in Asian demand and of the exportof Southeast Asian countries". During themission, logistics company Katoen Natie willinaugurate its new Singapore terminal. Morebroadly, the areas of health, chemicals, foodprocessing, communications technology, aswell as banking technology will be very wellrepresented within the mission, as well asthe construction and oil and gas activities.

For a complete overview of the interna-tional network of ING, go towww.ingcb.com

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ING WANTS TO OPEN THE DOORS OF ASIA TO ITS CUSTOMERSING Bank will take part in theeconomic mission to Malaysia-Singapore and is putting its net-work at the service of Belgiancompanies looking for interna-tional growth.

VIETNAMHanoi

including through making it costlier to employ low-skilled foreign workers. the early 2000s, the SingaporeGovernment's policy tends toward a more service-based economy, focused on an increasing rate of pro-ductivity and a decreasing share of unskilled labour.The government sees that staying at the top of thecompetitiveness rankings is the best way to ensurebright job prospects for Singaporeans. Malaysia, meanwhile, is battling its belittling image asa country stuck in the middle-income trap. Malaysian'spublic authorities are introducing supply-side reformsaimed at escaping the trap, including a public financereform to be implemented in 2015 that will shift toindirect taxation – a goods and services tax – fromdirect taxation – personal and corporate income taxes.The authorities have imposed a 55% of GDP limit onpublic debt . Malaysian manufacturers also may benefitfrom slower growth in China. After all, the Chineseboom in the 2000s was more beneficial to producers inChina’s northeast Asian neighbours, who had toincrease productivity to stay ahead of Chinese competi-tors. Many producers in Southeast Asia, starting from alower average level of technological sophistication,were unable to survive the increased competition.Slower growth puts this process into reverse: SoutheastAsia will benefit as producers in North Asia react toslower growth by outsourcing production capacity tolower-cost destinations. Malaysia has historically been atop destination for foreign investors, in part because itsinfrastructure is much better than that of its neigh-bours. Singapore competes with places like Hong Kong andShanghai (China) as a preferred site for regional offices.Shanghai continues to lead in terms of proximity tomarkets and the sheer strong production base of theChinese labour force but costs have increased overtime and some of the new reforms and related investi-gations have made international investors wary. Overtime Hong Kong has become associated as the gate-way to China and has relinquished some of its role asgateway to the rest of Asia to Singapore.

‘IIn the areas of trade and investment,Singapore and Malaysia are two of the coun-tries that matter most for Southeast Asia,being the top two trading partners with theEU in the ASEAN," says Manuel Salak, Head of

Clients and Corporate Finance for Asia at ING.Companies appreciate the world class infrastructure,excellent and efficient services particularly in logisticsmanagement, a health care system which is amongone of the world's best, and the presence of skilledworkforces, both local and expatriate. An opinion shared by Tim Condon, Chief Economist,Asia at ING: "Stability certainly is one of the mostappreciated assets of Singapore and Malaysia, togetherwith the effectiveness of the public authorities. Even ifthe two States have not regained their pre-crisis growthlevel, the rate of growth remains enviable (3.3%expected in 2014 for Singapore, and 5.6% forMalaysia). One can safely state that neither faces anyserious macroeconomic stress and that their prospectsare very good." In the eyes of the economist, economicdevelopments in the rest of the world, for exampleanother global financial crisis, are more of an economicthreat than anything in their own economies. Theirfinancial markets are highly transparent and managedin an exemplary manner. The Singapore authorities arevery aware that Singapore is one of the largest financialcentres of the world, and are determined to maintainand strengthen its position. "It is possible thatexchange control measures taken in Malaysia at thetime of the Asian crisis in 1997-98 have somewhatundermined the reputation of the financial centre, butthat is only a hypothesis", adds Tim Condon.

SINGAPORE, THE BEST PLACE IN THE WORLD TODO BUSINESS.Singapore is one of the most welcoming places on theplanet for entrepreneurs. A go-for-growth policy in theearly 2000s strained the island’s infrastructure capacityand since 2011 government policy has aimed atexpanding infrastructure and raising productivity,

SINGAPORE: � Growth 2013: 3.9% � Growth 2014 (forecast): 3.3% � GDP per capita: $55,182 (2013) � Unemployment rate: 2 %� Ease of doing business ranking: 1st worldwide

� Expected export growth in the years to come: + 2-4% per year

� Expected import growth in the years to come: + 3-5%

MALAYSIA: � Growth 2013: 4.7% � Growth 2014 (forecast): 5.6% � GDP per capita: $10,898 (forecast 2014) � Unemployment rate: 3.1 %� Expected export growth in 2014 (forecast): 1.6%

� Expected import growth in 2014 (forecast): 2.2 %

Source: ING, World Bank

With their stableenvironment, world-class infrastructure,access across all ofSoutheast Asia – thecentre of future growth– Singapore andMalaysia possessremarkable advantages.

Present in Singapore for 27 years, ING supports theestablishment and development of Belgiancompanies in this key area of Southeast Asia. Asearly as 2015, the creation of the ASEAN EconomicCommunity will pave the way for a market of 600 million consumers.

‘Two ideal doorways to Southeast Asia’

Finally Singapore and Malaysia are looking to playtheir own regional hub roles with the creation of theAEC (ASEAN Economic Community). The AEC envi-sions an integrated platform of free flowing goods,investment, and capital and aims to create a singlemarket of 600 million people by 2015. Many compa-nies already are adopting an integrated approach tothe area, a whole new world of opportunities tograsp for Belgian companies and the EU!ING has been helping both local and internationalclients in Singapore both for their local bankingneeds and their requirements when they deal withtheir own operations in China or Southeast Asia. INGremains one of the top three banks in the region fortrade commodity finance and relies on its interna-tional network for landmark corporate advisory andindustry lending deals. "We have strong expertise infinancial transactions related to commodities financeand all trade flows", continues Manuel Salak. "Weare also financing our customers and advising themon their banking needs in various sectors such astransport and logistics, Power and utilities, telecomsmedia, natural resources and food/consumer.Identifying the right opportunities and supportingtheir efforts with strong quality execution is key toour client centricity and providing value added dif-ferentiation."

� ING Commercial Banking network in Asia

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Sébastien D'Hondt, Head of CorporateClients Belgium ING Commercial Banking

Tim Condon, Chief Economist AsiaManuel Salak, Head of Clients and Corporate Finance Asia

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