The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia (NBC) have inaugurated the Financial Transparency Corridor (FTC) initiative to enhance financial cooperation between the two countries, particularly for small and medium-sized enterprises (SMEs). (fintechnews.sg)
The event, held at Istana, Singapore, was attended by Singapore Prime Minister Lawrence Wong and Cambodian Prime Minister Hun Manet during his official visit to Singapore from 18 to 19 June 2024.
The FTC is a consent-based digital infrastructure connecting financial institutions in both countries, aiming to boost trade and cross-border financial services for SMEs.
This platform allows for improved data accessibility, enabling participating financial institutions to make better credit risk assessments and facilitate financing for SME trade between Singapore and Cambodia.
The FTC is is designed and run by Proxtera Pte Ltd, a meta-hub that connects B2B platforms and SMEs for trade and financing.
The first batch of financial institutions from Singapore and Cambodia have joined the initiative.
Singapore participants include ANEXT Bank Pte Ltd, Liquid Group Pte Ltd, and Sing Investments & Finance Limited, while Cambodian participants include Advanced Bank of Asia Ltd, ACLEDA Bank PLC, Phillip Bank PLC, Sathapana Bank PLC, and Wing Bank PLC.
Information sharing and financing through the FTC have begun with these institutions executing initial live transactions.
For example, Sing Investments & Finance Limited will use the FTC to finance Singapore SMEs, such as JR Group, for purchasing raw materials from Cambodian SMEs.
Liquid Group Pte Ltd will assist with foreign currency payments related to this trade.
In Cambodia, Sathapana Bank PLC will use the FTC to provide financing to Cambodian SMEs, such as Comin Khmere Company Ltd, which imports building materials from Singapore.
Future phases of the FTC initiative will expand the number of participating financial institutions, increase deal flow, and explore green finance and trade finance opportunities to enhance trade capabilities between the two countries.
MAS and NBC signed a Memorandum of Understanding (MoU) in July 2023 to collaborate on the FTC initiative.
MAS Managing Director, Chia Der Jiun, said,
“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.”
NBC governor, H.E. 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 for SMEs 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.”
