MAS and National Bank of Cambodia to set up financial transparency corridor for SMEs
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The corridor aims to facilitate information exchange between participating financial institutions in the two countries.
PHOTO: ST FILE
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SINGAPORE - The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia (NBC) will set up a financial transparency corridor (FTC) initiative to facilitate trade and cross border-related financial services for small and medium-sized enterprises (SMEs) in Singapore and Cambodia.
They signed the memorandum of understanding on Tuesday.
Under the initiative, the corridor aims to establish a consent-based digital infrastructure to facilitate information exchange between participating financial institutions in Singapore and Cambodia to support the provision of cross-border financial services to SMEs.
The corridor will also support financial institutions’ loan assessments for trade financing and an SME’s compliance with anti-money laundering rules to mitigate risks and potential trade disputes.
For example, a Singapore financial institution, in assessing financing support for a Singapore SME buyer’s cross-border business with a Cambodian SME seller, can use the FTC to acquire trusted information from a Cambodian financial institution on the Cambodian SME seller, said MAS and NBC in a joint statement on Tuesday.
Similarly, a Cambodian financial institution supporting a Cambodian seller can obtain trusted information on the Singapore buyer through the FTC.
“Such enhanced information flows... can help SMEs in Singapore and Cambodia access broader digital trade networks such as the Business Sans Border Proxtera global network, and provide SMEs with greater trade connectivity within Asean and other growth regions,” said MAS and NBC.
The FTC will support open trade flows for businesses, in particular SMEs, through enhancing financial trust data for financial services between Singapore and Cambodia, said Mr Sopnendu Mohanty, chief fintech officer of MAS.
“This will lead to closer partnerships between our financial centres for better products and innovative solutions, and stronger growth together for our economies in the global digital economy,” he added.
SMEs are the backbones of the Cambodian and Singaporean economies, said Dr Serey Chea, deputy governor of NBC.
“Their ability to access financing beyond the border will greatly help them grow their operations and better contribute to both countries’ economic growth,” she added.
MAS previously announced an FTC with the Bank of Ghana in 2020 to benefit SMEs and micro-SMEs in Singapore and Ghana.
