19-6-2024 (SINGAPORE) In a move set to deepen the longstanding ties between the two nations, Singapore and Cambodia on Tuesday (Jun 18) inked an agreement to bolster their cooperation in the realm of digital government. The Memorandum of Understanding (MoU) was signed by Cambodia’s Minister of Post and Telecommunications, Chea Vandeth, and Singapore’s Senior Minister of State for Communications and Information, Janil Puthucheary, at the historic Istana, in the presence of the prime ministers of both countries.
The ceremonial signing took place during the first official visit to Singapore by Cambodian Prime Minister Dr. Hun Manet, who received a traditional ceremonial welcome at the Istana on Tuesday afternoon. Dr. Hun Manet also called on Singapore’s President Tharman Shanmugaratnam, reaffirming the “warm and longstanding ties” between the two nations as they look ahead to the 60th anniversary of the establishment of diplomatic relations next year.
According to a statement from Singapore’s Ministry of Foreign Affairs (MFA), President Tharman and Dr. Hun Manet discussed avenues for strengthening cooperation in vital areas such as trade, investment, financial transparency, food security, and water security. The Cambodian Prime Minister also held a meeting with his Singaporean counterpart, Lawrence Wong, who hosted an official dinner in his honor and witnessed the naming of an orchid hybrid in Dr. Hun Manet’s honor, a gesture symbolic of the deep-rooted friendship between the two countries.
The prime ministers welcomed the burgeoning economic ties between Singapore and Cambodia, exploring ways to deepen cooperation in emerging fields such as renewable energy and carbon credits. Notably, they lauded the establishment of the Laos-Cambodia-Singapore working group on cross-border electricity trading, aimed at catalyzing the development of projects to drive the ASEAN Power Grid. Singapore has granted conditional approvals for electricity imports from Cambodia, Indonesia, and Vietnam, underscoring the region’s commitment to sustainable energy solutions.
Mr. Wong also reiterated Singapore’s continued support for Cambodia’s human resource development and capacity building initiatives, reflecting the nation’s dedication to nurturing talent and fostering growth within the ASEAN community.
In a broader context, the leaders exchanged views on regional and international developments, emphasizing the importance of upholding ASEAN centrality and unity, deepening regional economic integration, and building an open and inclusive regional architecture.
Speaking at the official dinner, Mr. Wong paid tribute to the “long-standing bilateral ties” between Singapore and Cambodia, stating, “Over the decades, our bilateral ties have grown tremendously. It is marked by mutual respect, shared aspirations, and a commitment to regional stability and prosperity.”
He highlighted the pivotal role of trade and investment as key pillars of the relationship, with Singapore being “one of the early believers of Cambodia’s potential” and now standing as one of Cambodia’s top investors. Singapore’s investments span crucial sectors such as real estate, logistics, agribusiness, and finance, with economic cooperation expanding into new domains like renewable energy and carbon credits.
In a significant development during Dr. Hun Manet’s visit, the Monetary Authority of Singapore (MAS) and the National Bank of Cambodia announced the launch of the Financial Transparency Corridor (FTC) initiative. Both leaders presided over the commemoration event at the Istana, marking a milestone in the financial cooperation between the two nations.
The FTC aims to establish a digital infrastructure to facilitate trade and cross-border financial services for small and medium-sized enterprises (SMEs) in Singapore and Cambodia. Subsequent phases will seek to increase the deal flow, expand the number of participating financial institutions, and explore opportunities in green finance and trade finance, bolstering the trade capabilities of both countries.
MAS Managing Director Chia Der Jiun emphasized the initiative’s potential, stating, “The start of the FTC, with an initial set of financial institutions from Cambodia and Singapore, will support greater access to financial services for SMEs, through the exchange of SME financial data on the FTC digital infrastructure. This will create greater business opportunities for our SMEs and participating financial institutions.”
Dr. Serey Chea, Governor of the National Bank of Cambodia, echoed the sentiment, highlighting the shared vision of the two central banks to “support information flows for businesses, in particular SMEs, through enhancing financial trust data for financial services between Singapore and Cambodia, which will promote abilities of SMEs in better access for SMEs to finance beyond borders.”
