Singapore and China Tighten Financial Cooperation Together
editor - November 26, 2018

The financial cooperation between China and Singapore has achieved a new mark since a release of Monetary Authority of Singapore.

Mr. Teo Chee Hean, Singapore Deputy Prime Minister, and Coordinating Minister for National Security, And Mr. Han Zheng, People’s Republic of China Executive vice premier of State Council, continued ongoing discussions regarding the collaboration to meet countries in agreement while they co-chaired the 14th Joint Council for Bilateral Cooperation (JCBC).

Singapore – one of four dragons of Asia – is proving themselves by emerging notably as one of the top three offshore RMB centers globally relating to deposits, trade finance, clearing etc. According to a new announcement of MAS, RMB is included in top 5 foreign currencies traded in Singapore.

Mr. Ravi Menon, MAS Managing Director, had some comments about this announcement. At the view of the banks, especially MAS, the increase in financial co-operation between China and Singapore will let them be able to advance fresh initiatives on it each year and prove to the strong relationship between MAS and their counterparts in China. With the further development in financial factors in both China and Singapore, they can take some significant opportunities to enhance financial connectivity for them and other mutual benefits. Because of this value chance, MAS is stepping up collaboration in supervision to make sure that their financial markets grow and become more connected stably and confidently.

China and Singapore insisted on enhancing cooperation in future areas, including:

Strengthening Supervisory Cooperation: The financial authorities from both sides will facilitate a deeper understanding regulatory approach of their cooperator through strengthen supervisory cooperation as financial institutions and investors by increasing activities in other’s markets. This action also contributes to a more effective cross-border supervisory and regulatory oversight there need. Consequently, the bilateral engagements through regular high-level dialogues and staff attachment will also be stepped up.

Enhancing Financial Connectivity – In the medium term, many investors will want to participate in each other’s markets. Both sides need to find possible initiatives for a effective investment flows so the enhancing financial connectivity is necessary.

Expanding Cooperation in Fintech- China and Singapore are beholding an epoch that global financial landscape changes and FinTech activities growth faster than ever. Therefore, financial agencies from both countries need to expand collaboration in FinTech matters to deal with these changes especially in information exchange on FinTech developments and risks and providing for regulatory cooperation on cross-border FinTech activities.

Supporting the Belt and Road Initiative – China has strong potential to dovetail their initiative with infrastructure financing and development initiative of their Belt and Road – ASEAN. Singapore will be the first step when it provides their infrastructure Asia as an open platform for developing the infrastructure and financial institution for China to partner relevant players in not only Singapore but also other regions of South East Asia through regional infrastructure project supporting ASEAN’s needs.

China and Singapore are pioneers prove their important role in the international market, especially in technology. While China is the largest FinTech market in the world due to its outsized presence in online lending and an aggressive policy regarding blockchain technology and Singapore is a prominent FinTech hub. Singapore Tightens Financial Cooperation with China will be a hit for not only both sides but also the whole world.

 

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