Singapore and Cambodia launch financial transparency corridor for SME trade

Participating financial institutions include ANEXT Bank and Advanced Bank of Asia.

The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia (NBC) have commenced the Financial Transparency Corridor (FTC) initiative between their countries.

Designed and run by Proxtera Pte Ltd, the FTC is a consent-based digital network connecting financial institutions (FIs) in Singapore and Cambodia. It aims to better facilitate trade and cross-border financial services for SMEs between the two countries.

Better data accessibility will assist financial institutions in making more accurate credit risk assessments and boost financing options for SME trade between Singapore and Cambodia.

The first batch of participating FIs from Singapore include  ANEXT Bank, Liquid Group, and Sing Investments & Finance Limited. 

Participants from Cambodia are Advanced Bank of Asia, ACLEDA Bank PLC, Phillip Bank PLC, Sathapana Bank PLC, and Wing Bank PLC.

The participating FIs will leverage the FTC to provide financing to Singapore SMEs in transactions with Cambodian SMEs and vice versa and use the FTC to assist in necessary checks for foreign currency payments related to this Singapore-Cambodia trade.

The next phases of the FTC initiative will increase the deal flow and number of financial institutions involved and explore green finance and trade finance to enhance trade capabilities for both countries. MAS and NBC signed an MoU in July 2023 to support the FTC initiative.