Singapore-Chongqing financial connectivity strengthens amid the pandemic
Singapore, 23 November 2021… Financial connectivity between Singapore and the Western Region of China has strengthened over the past year despite the pandemic. The China-Singapore (Chongqing) Connectivity Initiative (CCI) has helped to catalyse US$3 billion in multi-currency financing deals from the Western Region this year, amounting to over US$17 billion in cross-border deals since the CCI’s inception in 2015. These figures were shared at the opening ceremony of the 4th China-Singapore (Chongqing) Connectivity Financial Summit that was held this afternoon.
2. Ten MOUs between Singapore and Chongqing corporates and institutions relating to cross-border financial services cooperation, green finance and FinTech were also inked during the Summit (Please see Annex A for list of MOUs).
3. Speaking virtually at the opening ceremony, Mrs Josephine Teo, Minister for Communications and Information and Second Minister for Home Affairs, Singapore, highlighted the role that the financial services sector can play in meeting today’s economic challenges, and in supporting the transition towards a more sustainable future. Mrs Teo also highlighted the importance of leveraging technology to facilitate trade and investments along the CCI New International Land-Sea Trade Corridor (CCI-ILSTC), which connects Southeast Asia and Western China.
4. Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, said the greater use of electronic trade documents along the CCI-ILSTC would make verification checks easier, reduce the incidence of fraud and human error, and ultimately lower costs. Mr Menon also offered suggestions on how Singapore and Chongqing could work together to mobilise green financing and investments in a safe, sound, and orderly manner.
5. The two-day Summit, which continues tomorrow, features discussions between ASEAN central bank representatives and financial sector leaders on key areas of mutual interest between the Western Region of China and ASEAN under the theme of Deepening China-ASEAN Financial Cooperation, Creating a New Paradigm of Interconnectivity. The current and incoming ASEAN Chairs, Ms Noorafidah Sulaiman, Deputy Managing Director of the Brunei Darussalam Central Bank (BDCB) and Ms Neav Chanthana, Deputy Governor of the National Bank of Cambodia, delivered their keynote remarks today and other ASEAN representatives will participate in panel sessions tomorrow.
6. The CCI Financial Sub-Committee Advisory Group (CAG), which comprises financial leaders from Singapore and China, will also hold its second meeting tomorrow to explore ways to support the development of Chongqing as the leading financial centre in the Western Region and strengthen collaboration in green finance between Chongqing and Singapore (Please see Annex B for the list of members).
About the Summit
The China – Singapore (Chongqing) Connectivity Initiative Financial Summit is the signature event under the Financial Services pillar of the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity. The two-day Summit focuses on opportunities to deepen financial collaboration between Singapore and Chongqing, and between ASEAN and Western China. Attendees of the Summit include representatives from central banks, financial institutions and corporates from across ASEAN and Chinese policymakers and financial institutions.
The Summit is co-organised by the Singapore Ministry of Trade and Industry, the Monetary Authority of Singapore, the Ministry of Commerce of the People’s Republic of China, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange of the People’s Republic of China, and the Chongqing Municipal People’s Government.
The China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI) is the third Government-to-Government collaboration project between Singapore and China. Cooperation under the CCI covers four areas: (i) Financial Services; (ii) Aviation; (iii) Transport and Logistics; and (iv) Information and Communications Technology. The vision for the Financial Services pillar is to promote Singapore-Chongqing connectivity and innovation in Financial Services to facilitate economic transformation in Western China.
Mr Ravi Menon, Managing Director, MAS, spoke on MAS' efforts to build three foundational digital infrastructures, as well as MAS’ collaboration with UNDP to maximise opportunities for MSMEs.
Joint Statement of the 10th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM)
State Bank of Vietnam, the central bank of Viet Nam, has officially joined the Regional Payment Connectivity (RPC) initiative. This recent development is an expansion of the Memorandum of Understanding on Cooperation in Regional Payment Connectivity (MOU RPC) that was initiated by the central banks of Indonesia, Malaysia, Philippines, Singapore, and Thailand at the sidelines of the G20 Leaders’ Summit.