of Monetary Authority of Singapore (MAS) And that National Bank of Cambodia (NBC) The two countries have launched the Financial Transparency Corridor (FTC) initiative to enhance bilateral financial cooperation, especially for small and medium-sized enterprises.
The event, held at the Istana in Singapore, was attended by Singapore Prime Minister Lawrence Wong and Cambodian Prime Minister Hun Manet, who were on an official visit to Singapore from 18-19 June 2024.
The FTC is a consent-based digital infrastructure connecting financial institutions in both countries, with the aim of facilitating trade and cross-border financial services for small and medium-sized enterprises.
The platform will improve data accessibility, enabling participating financial institutions to conduct better credit risk assessments and facilitate financing of SME trade between Singapore and Cambodia.
FTC is designed and run by Proxtera Pte Ltd, a meta-hub that connects B2B platforms and SMEs for trade and financing.
The first group 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.
With these agencies executing their first real transactions, information sharing and fundraising through the FTC began.
For example, Sing Investments & Finance Limited uses the FTC to raise funds for Singaporean small and medium-sized enterprises, such as JR Group, to purchase raw materials from Cambodian small and medium-sized enterprises.
Liquid Group Pte Ltd will assist with foreign currency settlement in connection with the transaction.
In Cambodia, Sathapana Bank plans to use the FTC to provide loans to Cambodian small and medium-sized enterprises such as Komin Khmer Corporation, which imports building materials from Singapore.
Future phases of the FTC initiative will expand the number of participating financial institutions, increase deal flows, and explore green finance and trade finance opportunities to strengthen bilateral trade capacity.
MAS and NBC Signed A memorandum of understanding (MoU) was signed in July 2023 to cooperate with the FTC’s efforts.
Cheer Da Ji Eun
MAS Managing Director Cheah Dar Ji Woong said:
“With financial institutions from Cambodia and Singapore joining the FTC as its first partners, financial data of SMEs will be exchanged on the FTC’s digital infrastructure, expanding SMEs’ access to financial services.”
This will create greater business opportunities for small and medium-sized enterprises and participating financial institutions.”
Dr. Cheah Serey
NBC President Dr Serey Cheah said:
“The FTC embodies the NBC and MAS’s shared vision to support the flow of information for businesses, especially SMEs, by enhancing financial trust data on financial services between Singapore and Cambodia, which will facilitate their ability to access financing across borders.”
The establishment of the FTC underscores our commitment to driving positive change to facilitate trade and financial services and foster sustainable economic development.”
