SINGAPORE financial institutions (FIs) that are assessing their financing for local small and medium-sized enterprises’ (SMEs) cross-border businesses may soon be able to acquire trusted information on the Cambodian SME from the country’s FIs, and vice versa.
The enhanced data accessibility comes on the back of the launch of the Singapore-Cambodia financial transparency corridor initiative on Tuesday (Jun 18).
This will allow both countries’ FIs to make better credit risk assessments and facilitate greater availability of financing for SME trade between both sides. The aim is to boost trade and cross-border related financial services between local SMEs.
The launch of the corridor builds on the memorandum of understanding signed in July last year between the Monetary Authority of Singapore (MAS) and the National Bank of Cambodia.
The initiative is currently in its first phase, with the initial batch of participating FIs being onboarded. The goal is to execute the first live financing transactions in the second half of this year.
Participating FIs from Singapore are Anext Bank, Liquid Group, as well as Sing Investments & Finance. Those from Cambodia include Advanced Bank of Asia, Acleda Bank, Phillip Bank, Sathapana Bank and Wing Bank.
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The launch of the initiative was held in conjunction with Cambodian Prime Minister Hun Manet’s two-day official visit to Singapore from Jun 18, at the invitation of Singapore’s Prime Minister Lawrence Wong.
This is Hun Manet’s first visit to Singapore as his country’s prime minister, after he took office in August last year.
The Cambodian leader also witnessed the ceremonial exchange of a memorandum of understanding on digital government cooperation between the kingdom’s Ministry of Post and Telecommunications and Singapore’s Ministry of Communications and Information.
On Tuesday night, Wong hosted an official dinner at the Istana banquet hall in Hun Manet’s honour.
In his toast speech, he said: “Cambodia and Singapore are at different stages of economic development. But as two countries in South-east Asia, we face common challenges, and we share similar perspectives and interests on many issues.”
Wong added: “We both have a stake in making Asean a strong and robust grouping in the international arena.”
Relations between the two Asean member states – which will commemorate 60 years of diplomatic ties next year – were formally established on Sep 15, 1965.
“Singapore was one of the early believers of Cambodia’s potential,” said Wong, adding that trade and investment are key pillars of bilateral ties.
Singapore’s investments in Cambodia span a range of sectors, including real estate, energy, agri-business, education and finance.
In 2023, Singapore was Cambodia’s second-largest source of foreign direct investment. The Republic was also Cambodia’s eighth-largest trading partner from January to May this year, according to statistics from Cambodia’s General Department of Customs and Excise. Conversely, Cambodia was Singapore’s 26th-largest trading partner in merchandise from January to April this year, data from Singapore’s Department of Statistics revealed.
The eldest son of long-time ruler Hun Sen made an earlier visit to the Republic in June 2019 in his capacity as then-deputy commander-in-chief of the Royal Cambodian Armed Forces and commander of the Royal Cambodian Army. He also visited as the 64th Lee Kuan Yew Exchange Fellow in June 2018.
On the first day of his visit, Hun Manet received a ceremonial welcome at the Istana and called on President Tharman Shanmugaratnam.
An orchid hybrid, Vanchoanthe Hun Manet, was then named in honour of the Cambodian leader.
On display at Gardens by the Bay is also an exhibition showcasing a replica of famed temple complex Angkor Wat adorned with more than 50 species of Cambodian orchids.
The kingdom’s prime minister will receive a call from Senior Minister Lee Hsien Loong on Wednesday. He will also attend the Cambodia-Singapore Business Forum as the guest of honour. On his itinerary are also visits to Nanyang Polytechnic and Keppel’s solar-powered Infrastructure@Changi building, before he departs Singapore the same day.
The leader’s delegation in Singapore includes Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Sok Chenda Sophea, several ministers, senior government officials and representatives from the Cambodia Chamber of Commerce.
