UniCredit’s Gihan Candappa writes for CFO Innovation Asia on the rise of Asian RTCs

UniCreditBankOver the past few years, growth in inter-regional trade and the internationalization of the renminbi have made centralized regional treasury centres (RTCs) in Asia a real possibility for many international corporates. Hong Kong and Singapore, in particular, are emerging as inviting locations, says Gihan Candappa, Head of Cash Management Sales, Singapore at UniCredit, in CFO Innovation Asia.

Much of their success in this respect can be put down to their favourable business environments – with both boasting sophisticated banking sectors and numerous tax incentives (both locations, for instance, offer low rates of tax on profits generated by specific treasury activities). Of course, the other major factor here is their close proximity to mainland China.

Those companies more active outside China, however, may want to locate their RTCs elsewhere. Locations such as India, Malaysia, the Philippines or Sri Lanka, for example, all offer fundamentally lower cost, while many are rolling out their own incentive schemes designed to draw in new business.

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