MANILA, Philippines — Export Development Canada opened offices in Singapore to herald a new era in business interaction between Canada and Southeast Asia.
The offices will be EDC’s hub to facilitate dealings with member countries of the Association of Southeast Asian Nations, bringing global-scale business financing that much closer to projects and companies.
This development is exciting to Bill Brown, regional vice president for Asia. “EDC’s financing is now offered more quickly and effectively, which will significantly benefit both Canadian companies operating in the Philippines, as well as Philippine companies seeking financing,” he said.
The implications for the Philippines are numerous not the least of which is shortening the processing time of all financing transactions. These transactions will now be done in actual Asian time, eliminating what was once a 12-hour delay in connecting with financial teams in Canada.
All transactions and processes will be much faster and are seen to benefit Canadian companies operating in the Philippines and Philippine companies seeking financial assistance.
Canada, renowned for its world-class technology and services, will be connected to Philippine companies and entities through a new convenient access to Canadian entities. EDC provides financial and insurance solutions for Canadian exporters and investors and now will be able to provide direct and timely assistance to Philippine companies seeking financing especially when dealing with Canadian companies.
Canadian firms have been active in the resource, infrastructure and extractive sectors and are in a good position to contribute to the same sectors in the Philippines. For EDC, will be made possible by its presence in Southeast Asia. Canadian suppliers in the food, beverage, packaging, fuel, oil, energy and telecommunications industries are a natural fit for many Philippine businesses, the company said.
EDC already has strong relationships with San Miguel Corp., First Pacific Company Limited, Globe Telecom, Philippine Long Distance Telephone Company (PLDT). EDC is providing funds to finance some of these companies’ capital expenditure plans.
The Philippines was Canada’s 32nd export destination in 2015 with $732 million in transactions. EDC contributed $242 million of this amount—roughly 33 percent. The total contribution of EDC went up the following year, hitting $343 million in total volume and highlighting the importance of what Canadian industries consider a high potential market.
The presence of the new office in Singapore is set to double EDC’s annual income by 2020.
For EDC, business in the Philippines is promising, with the company having identified the sectors where it sees the most opportunity. These are food processing, clean technology, pulp and paper, information and communications technology, and aerospace technology—similar to prospect industries across ASEAN. Another high growth sector that may not be similar among the various ASEAN countries is oil and gas.
EDC is helping to establish connections between various entities in different countries and Canadian companies leveraging on these corporations’ expertise for greater growth in ASEAN and especially the Philippines. Win-win situations become possible through buyer financing and matchmaking.
Canada, like other ASEAN-member countries, depends heavily on trade to keep its economy stable. This makes the prospects for EDC quite positive, especially with the Trans Pacific Partnership Agreement, which is seen to increase Canada’s GDP by $4.3 billion by 2040. The momentum can be expected to create opportunities for new trading agreements and arrangements that were previously difficult to access.
Bill Brown, Export Development Canada’s regional vice president for Asia. EDC/Released
With such a financial facility being made available through EDC, more companies will be encouraged to build and base their supply chains through Canada, tapping other opportunities and possibilities in that country.
EDC has been supporting and developing Canada’s export trade and international business efforts and its much stronger presence in Southeast Asia, through its Singapore office, gives it an even greater reach and power.
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