Financial and economic ties between Singapore and the UK are set to become stronger after the latest UK-Singapore Financial Dialogue, according to a latest joint-statement issued by the Monetary Authority of Singapore (MAS) and the British Treasury.
The new financial dialogue between the two countries will form the basis for a regular and structured exchange of views on domestic and international financial issues and support the setting up of a private sector forum for further development of the offshore Renminbi market.
The announcement, which was made after a meeting in Singapore between the UK’s Chancellor of the Exchequer, George Osbourne, and Singapore’s Deputy Prime Minister, Tharman Shanmugaratnam,has been welcomed by banks and financial institutions in the two countries.
The new private sector forum, in addition to strengthening the offshore Renminbi market, will focus on fostering greater cooperation between the UK and Singapore markets.
With London and Singapore already being two key players in Renminbi markets outside of Greater China, the latest dialogue will further promote use of the Renminbi (RMB) and aid innovation in RMB products and services at the two centers.
After the meeting 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 centers. Sharing our knowledge and expertise will open up new opportunities for both of our economies and help the UK succeed in the global race.”
Tharman Shanmugaratnam commented, “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 co-operation. The new private sector forum will also help advance cooperation as we each play our role in developing the offshore RMB market.”
He added: “Outside of China and Hong Kong, London and Singapore are the leading centers for RMB trading and financing, and serve different investor bases and business communities. The two centers 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.”
The latest agreement comes two years after George Osbourne signed a similar agreement with Hong Kong – the largest offshore Renminbi centre – which was aimed at making London an offshore trading center for the currency. There was also a similar agreement with Beijing that allowed for direct Renminbi-Sterling trade and for Chinese banks to set up branches in the UK.