SPECIAL ZONE DEVELOPMENT

The special zone development project of SHANCORP HOLDING

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Promoting the platform of establishing Special Financial Center in Batam by Shancorp together with IBA

In 2019, Shancorp Holding was officially established in Singapore. The purpose of Shancorp Holding's establishment is to incorporate the results of oversea operations in the past 20 years into the management of the holding business, and through the integration of various businesses with new ones, it is able to give back to the society and the country with great synergies of commercial development.

At present, Shancorp Holding's sub-businesses are consolidated into three categories: establishment of platform of special zone development, assets transformation development and commercial operation. Currently we have 2 special zone development projects, 2 assets development projects and 8 subsidiaries in operation. The industries involved include finance, restaurants, tourism, country clubs, biotechnology and medical care, life services and so on. As a member of IBA, Shancorp actively assists this association in promoting the establishment of the platform of Special Financial Centre (SFC) in Batam. This project has a great influence on the improvement of the country’s economic development and the platform will be jointly promoted together by more organizations and corporations.

SSFC in Batam is to simulate the setting of financial special zones in the world. It uses Bermuda, Cayman, and the Virgin Islands Special Zone as a blueprint to establish a tax-exemption zone in Southeast Asia. This project is located in Batam, covering an area of 871 hectares and Bintan 800 hectares of free trade zone, these two areas are adjacent to Singapore's financial center. In addition to their own development, these two islands can also be used as the extended hinterland of Singapore's financial center. Because Singapore is limited by its insufficient land, if connected to SFC in Batam, it can supplement its inadequacy of resources such as the hinterland. In addition, Indonesia and Islam in the region have the same unique religious color. The social culture is more convenient to connect the power of Petrodollars exerted by the Islamic financial economy in the Middle East to be integrated in Southeast Asia. The booming market of the region is multifaceted with various advantages and that not only makes this region the core of Asian economy but also takes SFC in Batam to the higher level of trade and financial centers.

On the other hand, with regard to the development of the Indonesian domestic market, trade representative offices in 34 provinces can be set up in SFC in Batam. And major companies in the world will be invited to set up branches to facilitate their needs for investments in Indonesia, such as setting up small exhibition halls or the foreign management village to smooth communication on the platform.

In addition to the convenience of providing the above, it is more straightforward that SFC will be facilitated with tax cuts or tax exemptions to attract more capital injections and activities in the international market, especially the huge wealth of petrodollars in the Middle East and Islamic funds all over the countries. The assets in more than 300 syariah banks in 70 countries and the fund from issuing Islamic financial bonds are even more impressive. Coupled with the geographical relationship of the nearest Singapore, it will be easier to attract Singaporean financial wealth management talents, because wealth management is Singapore’s expertise, and at the same time, it can also leverage on the delicate relationship between Singapore and Hong Kong. When Hong Kong is in crisis and its status as a financial center is being challenged by Shenzhen, it is much more easier to incorporate Hong Kong’s mature financial structure and complete financial service quality, and further more couple with integration into the Islamic economic and financial system, and this trend of integration will become an important indicator of global economic and financial development.

In this way, the value generated by the financial centers of Asian countries in terms of expertise of managing wealth & assets, geography, culture, etc., not only promotes the circulation of funds, but also introduces the establishment of bank headquarters, and requires international standard payment and settlement systems. It has a series of functions that can solve the supply and demand of capital and the liquidity of funds, and a fair securities transaction management system, and provide a standardized contract futures market, as well as a series of functions such as technical analysis to determine the trend of the foreign exchange market to maximize the benefits of the financial center. It can also combine the power of the Asian financial centers to respond to changes in the future oil prospects, prepare for the oil bubble crisis and economic problems in the next decade, and alleviate the increasing competition of the overall global economy, and respond to the global issue of limited resources and lack of funds in dealing with climate change, etc.

Batam, with its geographic location, culture, religion, and the uniqueness of the country where Indonesia has deep development potential, at this historical time when the economic development of the world is facing bottlenecks, SFC in Batam has the opportunity to learn from Dubai's successful experiences of developing an international financial center, combining the financial centers of Hong Kong and Singapore in Asia to build a service platform for the exchange of information and funds for the world. SFC in Batam will play a role in building a bridge between Islamic finance and Asian finance to world finance, and promote global social, economic and cultural exchanges. The integration of financial centers in Indonesia, Singapore, Hong Kong and Dubai will make SFC in Batam the top financial center in the world.

Based on the above-mentioned favorable conditions, Shancorp will continue to cope with more IBA partners and foreign resources to promote the establishment of the platform to develop SFC in Batam.