Two firms, YCH Group and Forchn Holdings, have come together to sign a memorandum of understanding that would expand their collaborative operations and they would explore several investment opportunities together to capitalize on the BRI or Belt and Road Initiative corridor. YCH Group, a major supply chain management company, and Forchn Holdings, a major ecommerce logistics services provider, have decided to set up a BRI Logistics Real Estate Private Equity Fund with an influx of $150 million (US Dollars) or $198 million (Singaporean Dollars) to create and expand warehousing infrastructures and logistical assets in China and Southeast Asia.
YCH Group has a dominating presence in Singapore and is one of the more important players in Southeast Asia. Forchn Holdings is a dominant player in Shanghai and wields considerable influence across Southeast Asia and Oceania, including Australia. The two power houses have plenty to offer each other and the combined effort will definitely derive the optimum benefits of the Belt and Road Initiative. While much is being talked about and written pertaining to the involvement of South Asian nations and countries in the Middle East, it is actually Singapore that can play a crucial role in the southeastern leg of the sea route that will serve as the maritime alternative to the original Silk Road, which is the inspiration at the crux of the One Belt One Road initiative being spearhead by China.
YCH Group and Forchn Holdings would be using the substantial fund to become one of the most important players in the Belt and Road Initiative, particularly across the Asia Pacific. The companies have cited Knight Frank’s New Frontiers report that has identified Singapore as one of the most crucial players in the entire Belt and Road Initiative. Knight Frank has even gone on to say that Singapore can determine the scope of success of the initiative. Beyond the initial fund, the two firms will also be collaborating to develop omni channel logistics and ecommerce fulfillment across China and Southeast Asia. The objective is to utilize the strengths of both firms to the maximum so both can expand and benefit. The two would also be sharing the real estate assets as and when applicable in mutually rewarding projects.
The development comes at an interesting time, when Forchn is looking to expand beyond China and YCH is trying to explore overseas markets. Both the governments of China and Singapore have been working on various initiatives to help its local businesses expand beyond the geographical confinements. Singapore has rolled out special training and networking programs, manpower policies and also teamed up with strategic partners to facilitate such expansions. The collaboration of two major players in their niche can certainly boost the prospects of enterprises operating in related domains, both in Singapore and Shanghai, possibly beyond as well. Forchn already has a base in Singapore, whose market leading position would be ensured by the joint venture and YCH will be able to expand in the city state and beyond through the same arrangement.
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