Cambodia and Singapore have reached a deal on setting up the Financial Transparency Corridor (FTC) initiative, facilitating trade and cross-border related financial services between small and medium-sized enterprises (SMEs) in the two countries.
The National Bank of Cambodia (NBC) and the Monetary Authority of Singapore (MAS) signed the memorandum of understanding on July 11, 2023.
Under the FTC, a Singapore financial institution, in assessing financing support for a Singapore SME buyer's cross-border business with a Cambodian SME seller, can utilise the FTC to acquire trusted information from a Cambodian financial institution on the Cambodian SME seller.
Similarly, a Cambodian financial institution supporting a Cambodian seller can obtain trusted information on the Singapore buyer through the FTC.
“Through such enhanced information flows, this 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,” NBC’s press release said.
H.E. Dr. Chea Serey, NBC Deputy Governor, said that in March (2023), Singapore and Cambodia collaborated on cross-border sharing of individual consumer credit profiles that makes it easier for citizens from both countries to access financial services in their country of residence.
The creation of the Financial Transparency Corridor will further extend the two countries' cross-border information sharing to businesses and SMES, she said.
“SMEs are the backbones of the Cambodian and Singaporean economies and their abilities to access financing beyond the border will greatly help them grow their operations and better contribute to both countries' economic growth,” she said.
Mr. Sopnendu Mohanty, MAS’ Chief FinTech Officer, said the Financial Transparency Corridor will support open trade flows for businesses, in particular SMEs, through enhancing financial trust data for financial services between Singapore and Cambodia.
“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 said.