DBS Group Holdings, Southeast Asia’s biggest bank, plans to spend $250 million over the next five years to expand its treasury and markets business in the region with a focus on China and India.

DBS, which plans to boost the unit’s workforce by about 50% to 600 employees over the same period, will build operations offering yuan-denominated foreign exchange, bonds and client advisory services, Andrew Ng, head of treasury and markets, said in an interview today. The bank also plans to set up debt capital markets operations in India, he said.

Revenue from its treasury and markets business, which handles the company’s fixed income and currency operations, may reach as much as $2.5 billion in five years, after growing fivefold to $1.7 billion in the 10 years to 2009, DBS said. More than 55% of the revenue is expected to come from outside Singapore by 2013, from 35% currently, Ng said.

“With the low-interest rate environment, fixed income products will be an area that investors will be chasing after,” Ng said. “In China, there is going to be a quickening in the pace of renminbi relaxation, and we see there is a big demand in the renminbi business.”

DBS transacted 9 billion yuan ($1.7 billion) of business last month. Ng said he expects the volume to grow by at least three times over the next two years. The bank’s yuan business will span foreign exchange, bonds, structured products and hedging solutions, he said.

The bank, which now employs the bulk of its treasury and markets staff in Singapore, will hire mostly for its sales, structuring and support teams in China, Hong Kong and India. DBS plans to hire 60 people in Hong Kong and China, as well as 40 in India over the next three to five years.