SCB gives investment option to SMEs with surplus liquidity

SCB has noticed over the last year that businesses in the country are starting to have some surplus liquidity, and is currently finding ways to assist businesses grow their wealth.

Eng Siok Tin, general manager of Wealth Management and Treasury said that businesses with surplus liquidity can look at more options in terms of investment.

She told The Brunei Times on the sidelines of the workshop entitled "Surplus Liquidity for Business" that previously, Standard Chartered Bank (SCB) were more inclined to offer investment products to its priority clients.

"But now, more businesses are coming forward to ask what they can do with their cash, and what other options they have with surplus liquidity that they have for one year or so," she explained.

Eng added: "So some are looking for shorter-term options in building up their cash."

In regards to Small Medium Enterprises (SMEs) which is what the workshop, held in partnership with the Brunei Economic Development Board (BEDB) at the iCentre was targeted at.

"For SMEs, I thought it would be good to pitch them some of our ideas because with $1,000 you can slowly build up your cash. If SMEs can put aside a small amount, it would benefit them. However, bigger corporations can do bigger ticket products," he said.

With these options, Eng said that it opens up more possibilities to SMEs, so that "they won't feel like they have nothing to invest in".

When asked what the usual concerns are when SMEs choose to invest, Eng said that liquidity is the main concern.

"SMEs need to know how they are able to get funds back or pledge to get money back to the bank. Some investment products, you can pledge it to the bank to get a loan and so on," she said.

However, on the banking side, the GM said that SCB must ensure that a risk profile is done to understand the client better.

"We have a tool to do business profiling for our clients. Then they can decide on which of the products they can take on, some having a higher starting investment amount, whilst others have a lower amount," she said.

Eng added: "We encourage them to do a risk profile, to know what risks are (at stake) and tell us what they can afford to invest in. So I think it's very much catered to individual businesses."

The workshop is the seventh one conducted by SCB and Eng, along with David Kwan, investment counsellor, to over 50 participants from the private and government sectors.

Following the workshop, was a one-on-one business clinic for interested parties, to have a private session with the two SCB representatives.

Eng said in a statement from the bank that "we know there are some businesses out there with surplus liquidity and there is an opportunity for these businesses out there to make their money work harder for them through the various products available".

"We are pleased that we can share our insight today and contribute and be the right partner to local SMEs," Eng added.

The next workshop in the series will be held on August 10, 2012.The Brunei Times