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A Kazakh-Singapore business forum was held in Astana with the participation of Kazakh Prime Minister Alikhan Smailov and Singapore President Halim Yacob, which brought together more than 200 representatives of government agencies and business circles of the two countries.

In his speech, Alikhan Smailov noted that over the past years, strong and harmonious relations have been built between the states. Today, Singapore is Kazakhstan's largest trade and investment partner in the ASEAN region. Thus, by the end of last year, bilateral trade increased by 65% and reached almost $2 billion. At the same time, the volume of Singapore investments increased 6 times over the same period to a record level of $400 million.

"Today, more than 230 Singaporean companies and joint ventures are successfully operating in Kazakhstan. At the same time, we have great potential to expand and deepen our economic ties. We have all the necessary prerequisites for the implementation of breakthrough investment projects," Alikhan Smailov said.

He stressed that large Singaporean companies are actively expanding their presence in Kazakhstan. In particular, the Head of Government noted the successful partnership with Surbana Jurong in the implementation of the large-scale G4 City project in the Almaty region, cooperation with the world-famous Indorama production group, as well as the importance of the agreement between KTZ and PSA International on the creation of a joint venture that will accelerate the development of the Middle Corridor.

"The growing interest of Singaporean business in launching joint projects in Kazakhstan is evidence that great attention is being paid in our country to improving the investment climate. This is reflected in government support measures and various preferences. Thus, there are special economic and industrial zones focused on priority sectors of the economy. Their participants get access to all necessary infrastructure. We are ready to further deepen our cooperation with Singapore partners," the Prime Minister said.

For her part, Singapore's President Halima Jacob noted that Kazakhstan is Singapore's largest partner in Central Asia and expressed confidence that relations between the countries will continue to strengthen.

"Today's business forum brought together many business leaders, including Singaporean companies who want to explore the possibilities of implementing projects in Kazakhstan. Given the growing geopolitical challenges, this will contribute to the diversification of the economies of both countries. In this context, Singapore continues to be open to expanding the partnership. Kazakhstan, with its huge resources and strategic location in the heart of Central Asia, is an attractive place for investment from the point of view of various countries and companies," President Halima Yacob said.

As a result of the forum, a number of bilateral agreements and memoranda were signed aimed at strengthening cooperation in the fields of trade, investment, logistics and training of civil servants, as well as commercial documents worth $275 million.

A source: Prime Minister of the Republic of Kazakhstan (www.primeminister.kz)

In some banks, an increase in the number of applications for unsecured loans was noted in the first quarter.

Demand for loans from SMEs continued to decline in the first quarter of this year, the press service of the National Bank of Kazakhstan reports, citing the results of a survey of banks.
Olzhas Kubenbayev, Director of the Financial Stability and Research Department of the National Bank, explained that the decline was due to small and medium-sized businesses (SMEs).
"The continued decline in the demand index from SMEs, as in the previous quarter, is the result of the high cost of credit resources. In addition, large banks note the effect of temporary suspension of financing under the state program. At the same time, the number of loan applications for unsecured credit products for SMEs based on scoring models continued to grow in some banks. As a result, the total number of SME loan applications increased by 7% (from quarter to quarter) to 546 thousand and by 21% (q/a) to 6.4 thousand, respectively," the speaker's comment says.
The demand of large business entities for loans, according to the data of most banks, remained at the level of the previous quarter. At the same time, some banks note a one-time increase due to the appeals of a large group of large customers. As a result, the total number of large business loan applications increased by 20% (q/a) to 254.
"The share of approval of loan applications for small businesses was at the level of the previous quarter at 39%. At the same time, this indicator decreased by 3% for medium and 25% for large businesses compared to the previous quarter and amounted to 48% for both medium and large businesses," Olzhas Kubenbayev said.
In the reporting quarter, banks mainly maintained the basic terms of lending to business entities and did not make significant changes. Nevertheless, some large banks noted an improvement in a number of services for small businesses.
"In the next quarter, most banks expect an increase in demand for loans from businesses as a result of the work done to improve services and launch financing under government programs," the speaker noted.
Demand for retail loans increased in the first quarter compared to the previous quarter in the segment of consumer unsecured loans and car loans. While demand for mortgage and consumer loans with collateral has decreased slightly.
"According to banks, the reduction in demand for mortgage loans in the first quarter is closely related to the rapid development of limits on funds allocated under the state program "7-20-25". Compared to the previous quarter, the number of loan applications decreased from 224 thousand to 194 thousand applications. In the mortgage lending segment, there is a softening of collateral requirements and an increase in interest rates," the National Bank explained.
The demand for consumer unsecured loans has mainly increased in banks with a greater share in commodity lending due to the simplification of online loan issuance processes, as well as conducting sweepstakes among loyal customers.
"In turn, in the reporting quarter, demand for secured consumer loans decreased due to a decrease in demand at a separate large bank. Credit conditions have tightened for both unsecured and secured loans. Thus, the requirements for the solvency of customers have increased. This was reflected in a decrease in the share of approval for such loans to 30.6% (in the fourth quarter of 2022 – 34.4%) and to 46.7% (in the fourth quarter of 2022 -57.8%), respectively," the director of the Department of Financial Stability and Research of the National Bank cited the figures.
With the increasing availability and supply of cars on the market in the reporting quarter, demand in the car loan segment increased. Thus, the number of applications for them increased by 7% to 532 thousand applications. In terms of car loans in a separate bank, the credit limit was reduced and the requirements for the creditworthiness of customers were increased.
In the second quarter, banks expect an increase in demand for mortgage loans and car loans, as well as a decrease in demand for consumer lending.

A source:The Capital Business Portal (www.kapital.kz)