Ministers welcome new private sector forum to boost offshore Renminbi market outside Greater China

Singapore, 25 February 2014…The UK and Singapore have agreed to set up a UK-Singapore Financial Dialogue, which will focus on deepening financial and economic cooperation between the two countries.

2   Making his first trip to Singapore, Chancellor of the Exchequer, George Osborne, and Singapore’s Deputy Prime Minister, Minister for Finance and Chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam, agreed to the Dialogue at a meeting in Singapore yesterday. London and Singapore are two of the world’s leading international financial centres and play similar roles as financial hubs and major asset management centres for Europe and Asia respectively.  They are also the largest and third largest foreign exchange centres in the world¹.  Led by HM Treasury for the UK and the Monetary Authority of Singapore, this dialogue will form the basis for a regular and structured exchange of views on domestic and international financial issues.

3   Alongside the Dialogue, the Ministers also agreed to support the establishment of a new, private sector forum to boost the development of the offshore Renminbi market.  The forum will be led by the private sector and focus on increasing cooperation between the UK and Singapore markets.

4   George Osborne said: “I am delighted to be able to announce the new UK-Singapore Financial Dialogue. The UK and Singapore are both leading financial centres. Sharing our knowledge and expertise will open up new opportunities for both of our economies and help the UK succeed in the global race. London and Singapore are integral players in Renminbi markets outside of Greater China. Our financial firms and institutions are leading the way in promoting the use of Renminbi and I am pleased to support work to help develop it further.”

5   Tharman Shanmugaratnam said: “The UK-Singapore Financial Dialogue reflects our common interests in promoting a stable and vibrant international financial system, and will help strengthen what is already a solid base of economic and financial cooperation. The new private sector forum will also help advance cooperation as we each play our role in developing the offshore RMB market.  Outside of China and Hong Kong, London and Singapore are the leading centres for RMB trading and financing, and serve different investor bases and business communities. The two centres can cooperate to promote fungibility of the RMB globally, encourage innovation in RMB products and services and meet the growing appetite for RMB investment instruments.”