Cambodia and Singapore Foster Stronger Trade Ties with Financial Transparency Corridor, Powered By Proxtera

[Singapore, 19 June 2024] 

Small and medium-sized enterprises (SMEs) in Cambodia and Singapore are poised to benefit from a more streamlined and efficient cross-border trade environment.   The Financial Transparency Corridor (FTC), established in July 2023 under the supervision of the National Bank of Cambodia and the Monetary Authority of Singapore, is now fully operational in its first pilot phase, powered by Proxtera’s digital infrastructure.

The FTC facilitates communication and information exchange between financial institutions (FIs) in both countries, fostering trust and transparency, empowering them to better assess risks and provide enhanced & faster financing for SMEs engaged in cross-border trade.

FTC fills the gaps in current information exchange between Cambodian and Singaporean FIs creating obstacles for SMEs engaging in cross-border trade to access financing. FIs lack transparency on SME risk profiles, leading to slow financing decisions and hindering growth.  The FTC addresses this challenge by establishing a platform for FI communication and verified information sharing.  For instance, a Singaporean FI can now use the FTC to acquire trusted information from a Cambodian FI about a Cambodian SME seller, enabling a more informed assessment of a Singaporean SME buyer’s cross-border transaction and vice versa.

This enhanced and private data exchange governed by robust protocols allows for better risk assessment and management, opening doors for increased cross-border trade and financial support between Singapore and Cambodia. 

Initial Participating Institutions:

• • Cambodia: Phillip Bank, Sathapana Bank, Acleda Bank, Wing Bank, ABA Bank

• • Singapore:  ANEXT Bank, Liquid Group, Sing Investments & Finance Limited

Mrs. Mar Amrara, Acting President & Group Managing Director of ACLEDA Bank Plc., said “ACLEDA Bank Plc. is proud to participate in the the start of the Financial Transparency Corridor (FTC) initiative between the National Bank of Cambodia (NBC) and the Monetary Authority of Singapore (MAS). This initiative provides customer choice for small and medium-sized enterprises (SMEs) in Cambodia and Singapore, enabling a more streamlined and efficient cross-border trade environment. SMEs are poised to benefit significantly, gaining opportunities for global network expansion.”

Mr. Ong Teong Hoon, Director & Shareholder Representative, Phillip Bank said, “In Cambodia, Phillip Bank is part of the Phillip Capital Group headquartered in Singapore, and its presence in the Kingdom includes Phillip General Insurance, Phillip Life Assurance, and Phillip Trustee. As a Singaporean bank, Phillip Bank is pleased to be amongst the first financial institutions to participate in the Financial Transparency Corridor (FTC) initiative. This collaboration will enable us to create innovative solutions and financial offerings for our corporate and SME customers, significantly enhancing trade between the two countries. With the digital economy rapidly reducing physical barriers between countries, Phillip Bank looks forward to the development of the FTC throughout the region to further boost trade and economic growth.”

Mr. Iwasa Tomoyuki, Acting CEO, Sathapana Bank said “Sathapana Bank PLC is excited to leverage this program to fast track its underwriting, increase its lending pool while derisking cross-border trade for its customers. FTC could enable several Cambodian exporters and importers, like the likes of Comin Khmere Company Ltd, which purchases building materials from multiple Singaporean SMEs, to benefit from uncollateralized additional working capital.”

Mr. Han Peng Kwang, CEO, Wing Bank said “WingBank is excited to participate in this innovative Financial Transparency Corridor, a platform  that foster trust between financial institutions of both countries and  empowering SMEs in Cambodia and Singapore to thrive in a streamlined and efficient cross-border trade environment. This corridor will offer new business opportunities for SMEs in both countries, paving the way for more collaborations and growth in the region.“

Mr. Askhat Azhikhanov, CEO of ABA Bank, said “ABA Bank is excited to participate in this innovative Financial Transparency Corridor, which improves cooperation between financial institutions in Cambodia and Singapore and provides local SMEs with a better and more efficient business tool. We are proud to support this initiative, aiming to enhance and increase cross-border trade and provide better banking service for our customers. The new corridor will surely create more business opportunities for Singaporean and Cambodian companies.”

Ms. Toh Su Mei, CEO, ANEXT Bank said “Cross-border trade is vital to the growth of economies and SMEs, and digital infrastructures will be crucial in scaling this. Initiatives like the FTC will enable greater efficiency, transparency and trust. More importantly, it lowers barriers by making financing more accessible, allowing even small and growing businesses to participate in cross-border trade. ANEXT Bank is proud to be part of today’s milestone in helping SMEs in Singapore and Cambodia access digital trade networks as one of the first financial institutions from Singapore to partner Proxtera in the FTC. Leveraging our innovation-led tech, we remain committed to empowering local and regional SMEs with accessible, effortless and secure digital financial services.”

Mr. Jeremy Tan, CEO of Liquid Group said “We are enthusiastic about our role as a trusted fintech participant in this initiative. The Financial Transparency Corridor (FTC) represents a significant advancement in fostering trust and streamlining cross-border trade for SMEs in both Singapore and Cambodia. The sharing of comprehensive information between counterparties enables full transparency of underlying trade and brings us closer to realising real-time cross-border B2B payments for our fellow participants.”

Mr. Lee Sze Siong, Deputy CEO of Sing Investments & Finance Limited (“SingFinance”), said, “Being part of the Financial Transparency Corridor ecosystem is an honour for SingFinance. We are confident that this digital infrastructure will enhance our credit assessments, empowering our robust AML and KYC processes for financing trades in ASEAN and other growth regions. This aligns perfectly with our strategic focus on digital transformation and our commitment to supporting local SMEs in expanding their businesses beyond Singapore.”

Ms. Jocelyn Chng, Group CEO of JR Group of Companies said “This initiative allows me to seamlessly inform my bank of upcoming cross border trades and gives them the ability to verify the counterparty details as required. It also provides additional security for our business as the bank’s verification process ensures the counterparty is reliable.  We are excited to participate in the ecosystem. Through FTC, we are confident to perform an agricultural trade with a Cambodian counterpart, a first for us. We look forward to joining the FTC initiative and using the Proxtera trade platform to grow our business.”

Mr. Saurav Bhattacharyya, CEO of Proxtera added “Proxtera is proud to provide the digital infrastructure for the FTC to drive increased trade and accelerate financing for SMEs in Cambodia and Singapore. Our platform ensures that Cambodian and Singaporean FIs can confidently share trusted information with the counterparty FI.  We are extremely happy to have ANEXT, Liquid Group, SingFinance from Singapore, and Acleda, Philip Bank, Sathapana Bank, Wing Bank and ABA Bank from Cambodia as the pioneering FIs piloting the first phase of use of the FTC run by Proxtera.”

About Proxtera

Proxtera is creating the global open digital ecosystem of MSMEs (micro, small and medium enterprises) with trusted credentials that help them gain access to trade opportunities and financial services for greater growth.

Proxtera’s mission is to transform business-to-business trade using technology to make marketplaces efficient and discoverable globally and to enable holistic cross-marketplace and cross-border trade leveraging trusted credentials to improve financing, fulfilment and empowerment.

Proxtera was launched at the end of 2020 as the operationalisation of the Business sans Borders (BSB) initiative by MAS and the Infocomm Media Development Authority (IMDA). BSB seeks to develop a collaborative global digital infrastructure that would help to increase cross-border trade opportunities and enhance digital and financial inclusivity for MSMEs in the underserved global B2B e-commerce market space.

Find out more at https://proxtera.com or email us at contact@proxtera.com.