The Financial Transparency Corridor (FTC) Initiative between Cambodia and Singapore was launched in Singapore this evening to catalyse increased trade and cross-border related financial services between small and medium-sized enterprises (SMEs) in the two countries.
The launching ceremony was presided over by Hun Manet, Prime Minister of the Kingdom of Cambodia and Lawrence WONG, Prime Minister of Singapore, during the former’s two-day (June 18-19) official visit to Singapore.
According to a joint media release between the National Bank of Cambodia (NBC) and the Monetary Authority of Singapore (MAS), designed and run by Proxtera Pte Ltd., FTC is a consent-based digital infrastructure and network between financial institutions (“Fls”) in Singapore and Cambodia. The ease of data accessibility will enable participating financial institutions to make better credit risk assessments and facilitate greater availability of financing for SME trade between the two countries.
The first batch of participating Fls from Cambodia and Singapore have been onboarded. They are: From Cambodia: Advanced Bank of Asia Ltd, ACLEDA Bank PLC. Phillip Bank PLC, Sathapana Bank PLC, and Wing Bank PLC, and from Singapore: ANEXT Bank Pte Ltd, Liquid Group Pte Ltd and Sing Investments & Finance Limited.
Information sharing and financing via the FTC has been initiated with various participating entities to execute the first live transactions. For Singapore, Sing Investments & Finance Limited, will be using the FTC to provide financing to Singapore SMEs, such as JR Group-a leading food services SME which will be purchasing raw materials and commodities from a Cambodian SME. Liquid Group Pte Ltd will also utilise the FTC to assist in necessary checks for foreign currency payments related to this Singapore-Cambodia trade. From Cambodia, Sathapana Bank PLC will leverage the FTC to provide greater financing to Cambodian SMEs, such as CominKhmere Company Ltd- an importer of building materials from multiple Singaporean SMEs.
Subsequent phases of the FTC initiative will increase the deal flow, number of financial institutions involved, and explore green finance and trade finance, to bolster the trade capabilities of both countries. MAS and NBC have signed a Memorandum of Understanding (MoU) in July 2023 to collaborate on the FTC initiative.
“The start of the FTC, with an initial set of financial institutions from Cambodia and Singapore, will support greater access to financial services for SMEs, through the exchange of SME financial data on the FTC digital infrastructure. This will create greater business opportunities for our SMEs and participating financial institutions,” said MAS Managing Director Mr. Chia Der Jiun.
For her part, NBC Governor, Dr. Serey Chea said, “The FTC exemplifies the shared vision of the NBC and MAS to support information flows for businesses, in particular SMEs, through enhancing financial trust data for financial services between Singapore and Cambodia which will promote abilities of SMEs in better access to finance beyond borders. The start of the FTC underscores our commitment in driving positive change to foster trade and financial services and promoting sustainable economic development.”AKP
