On 11 July 2023, the Monetary Authority of Singapore ("MAS") and the National Bank of Cambodia announced that they have signed a Memorandum of Understanding to collaborate on a Financial Transparency Corridor ("FTC") initiative.
The FTC initiative aims to establish supporting digital infrastructures to facilitate trade and cross-border related financial services between small and medium-sized enterprises ("SMEs") in Singapore and Cambodia. Under the FTC, when a Singapore financial institution ("FI") is assessing financing support for a Singapore SME buyer's cross-border business with a Cambodian SME seller, the Singapore FI can utilise the FTC to acquire trusted information from a Cambodian FI on the Cambodian SME seller. Likewise, a Cambodian FI supporting a Cambodian seller can obtain trusted information on the Singapore buyer through the FTC.
This enhanced trusted information flow will assist SMEs in Singapore and Cambodia to access broader digital trade networks. An example is the Business Sans Border Proxtera global network, which is a digital platform that aims to facilitate cross border trade connectivity among emerging market SMEs. SMEs will thereby be able to access greater trade connectivity within ASEAN and other growth regions.
For more information, click here to read our Legal Update (page 13).
