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Business Times
7 days ago
- Business
- Business Times
One system to rule them all: Span to oversee 8 payment schemes including Giro, PayNow, QR code
[SINGAPORE] Banks play a critical role in helping companies as they adapt to a more protectionist global economic order, said Deputy Prime Minister Gan Kim Yong, who is also minister for trade and industry, and chairman of the Monetary Authority of Singapore (MAS). 'While many businesses are pushing back against the new tariffs, once they have invested in the US, they will have an even greater incentive to ensure that these tariffs will stay on to protect their investments,' said DPM Gan at the Association of Banks in Singapore's (ABS) 52nd annual dinner on Wednesday (Jun 25). While the banks and financial institutions may not be directly affected by tariffs on goods, they may be hit by the slowdown in overall economic activity, including reduced trade-related financial services due to weaker trading activity, DPM Gan said. Hence, banks need to help those companies, especially small and medium-sized enterprises, that may face cash flow issues due to cancelled or deferred orders as a result of the tariffs. They should also deepen the relationship with their customers, by supporting their growth and expansion into new markets, he added. As geo-economic disruptions are accelerating, other fundamental changes are also happening. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Speaking on the low-carbon transition, DPM Gan noted the need to establish clear, consistent and credible guidelines to drive effective climate-financing action. As a result, the Singapore Sustainable Finance Association will launch a guide to leverage the Singapore-Asia Taxonomy (SAT) to support green and transition financing. The SAT was launched by MAS two years ago to facilitate transition financing, with clear, credible and science-based definitions of what constitutes green and transition activities. The National University of Singapore (NUS) Business School will also be introducing an undergraduate specialisation in sustainable finance to strengthen the talent pipeline, DPM Gan said. The specialisation will equip students with key sustainable finance technical skills and competencies identified by the Sustainable Finance Jobs Transformation Map. NUS intends to enrol about 50 students in each academic year in this programme at the onset, with aims to scale up over time. 'Even though some countries have rethought their climate commitments, particularly in light of the US pulling out of the Paris Accords, the pace of climate change has not slowed down and is, in fact, accelerating,' DPM Gan said. Meanwhile, ABS chairman Helen Wong said at the dinner that Singapore will launch new Electronic Deferred Payment (EDP) solutions – EDP and EDP+ – at the end of July. MAS and ABS previously said they would launch new EDP solutions in mid-2025 to support the transition to e-payments. EDP and EDP+ complement the wider suite of e-payment methods, which will hopefully make for a smooth transition away from cheques, Wong said. More details will be shared closer to the roll-out, she added. CLG to consolidate national payment schemes At the dinner, MAS and ABS also launched a not-for-profit company limited by guarantee to consolidate the administration and governance of Singapore's eight national payment schemes. This follows an earlier announcement in February 2025 to consolidate the schemes, which includes Fast And Secure Transfers, the interbank Giro system, PayNow and the Singapore Quick Response Code. The schemes are currently administered and governed by specific scheme administrators, including the Singapore Clearing House Association, ABS, MAS and the Infocomm Media Development Authority. Called the Singapore Payments Network (Span), the company will aim to be operationally ready by end-2026. Its initial members include MAS and the domestic systemically important banks. It will also have an 11-member board comprising two senior representatives from MAS, five bank and non-bank financial institutions, as well as four independent industry directors. Chia Der Jiun, managing director of MAS, expects Span will set the foundation for the banking and payments industries to collaborate more effectively, to build and facilitate greater resilience and innovation across Singapore's payment infrastructures.
Business Times
25-06-2025
- Business
- Business Times
Banks critical to help companies in more protectionist global economic order: Gan Kim Yong
[SINGAPORE] Banks play a critical role in helping companies as they adapt to a more protectionist global economic order, said Deputy Prime Minister Gan Kim Yong, who is also minister for trade and industry, and chairman of the Monetary Authority of Singapore (MAS). 'While many businesses are pushing back against the new tariffs, once they have invested in the US, they will have an even greater incentive to ensure that these tariffs will stay on to protect their investments,' said DPM Gan at the Association of Banks in Singapore's (ABS) 52nd annual dinner on Wednesday (Jun 23). While the banks and financial institutions may not be directly affected by tariffs on goods, they may be hit by the slowdown in overall economic activity, including reduced trade-related financial services due to weaker trading activity, DPM Gan said. Hence, banks need to help those companies, especially small and medium-sized enterprises, that may face cash flow issues due to cancelled or deferred orders as a result of the tariffs. They should also deepen the relationship with their customers, by supporting their growth and expansion into new markets, he added. As geo-economic disruptions are accelerating, other fundamental changes are also happening. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Speaking on the low-carbon transition, DPM Gan noted the need to establish clear, consistent and credible guidelines to drive effective climate-financing action. As a result, the Singapore Sustainable Finance Association will launch a guide to leverage the Singapore-Asia Taxonomy (SAT) to support green and transition financing. The SAT was launched by MAS two years ago to facilitate transition financing, with clear, credible and science-based definitions of what constitutes green and transition activities. The National University of Singapore (NUS) Business School will also be introducing an undergraduate specialisation in sustainable finance to strengthen the talent pipeline, DPM Gan said. The specialisation will equip students with key sustainable finance technical skills and competencies identified by the Sustainable Finance Jobs Transformation Map. NUS intends to enrol about 50 students in each academic year in this programme at the onset, with aims to scale up over time. 'Even though some countries have rethought their climate commitments, particularly in light of the US pulling out of the Paris Accords, the pace of climate change has not slowed down and is in fact accelerating,' DPM Gan said. Meanwhile, ABS chairman Helen Wong said at the dinner that Singapore will launch new Electronic Deferred Payment (EDP) solutions – EDP and EDP+ – at the end of July. MAS and ABS previously said they would launch new EDP solutions in mid-2025 to support the transition to e-payments. EDP and EDP+ complement the wider suite of e-payment methods, which will hopefully make for a smooth transition away from cheques, Wong said. More details will be shared closer to the roll-out, she added. CLG to consolidate national payment schemes At the dinner, MAS and ABS also launched a not-for-profit company limited by guarantee (CLG) to consolidate the administration and governance of Singapore's eight national payment schemes. This follows an earlier announcement in February 2025 to consolidate the schemes, which includes Fast And Secure Transfers, the Inter-bank Giro system, PayNow and the Singapore Quick Response Code. The schemes are currently administered and governed by specific scheme administrators, including the Singapore Clearing House Association, ABS, MAS and the Infocomm Media Development Authority. Called the Singapore Payments Network (Span), the company will aim to be operationally ready by end-2026. Its initial members include MAS and the domestic systemically important banks. It will also have a 11-member board comprising two senior representatives from MAS, five bank and non-bank financial institutions, as well as four independent industry directors. Chia Der Jiun, managing director of MAS, expects Span will set the foundation for the banking and payments industries to collaborate more effectively, to build and facilitate greater resilience and innovation across Singapore's payment infrastructures.
The Star
29-05-2025
- Business
- The Star
Asia must not ‘rest on its laurels', and continue to reinforce partnerships amid turmoil: S'pore DPM Gan
TOKYO: Singapore's Deputy Prime Minister Gan Kim Yong on Thursday (May 29) appealed to Asia to form agile partnerships and double down on regional integration amid deepening global strife. While many countries in Asia are already part of overlapping partnerships of varying permutations – bilateral, regional, plurilateral – the inherent danger is if they rest on their laurels and not work on growing and strengthening these links, he said. 'We should recognise the challenges of the current turmoil and raise the ambition of each of these mutually reinforcing partnerships,' DPM Gan said in a speech during the 30th Nikkei International Forum on the Future of Asia in Tokyo. Exercising agility and flexibility in building ties is increasingly vital as the world grapples with what DPM Gan described as 'the greatest uncertainty confronting us today', with questions lingering over what will happen after the US' 90-day reprieve over 'reciprocal tariffs' ends on July 8. 'Things are changing all the time, every morning when (you) open the newspaper, there is always big news on trade and tariffs, and sometimes shocking news, and that is the first dish on your breakfast table,' DPM Gan, who is also Singapore's Trade and Industry Minister, said in conversation with the Nikkei's Singapore bureau chief Fumika Sato. While he noted that the risk of a recession cannot be ruled out, another bad-case scenario was that it would be difficult to undo the damage caused by the sweeping Liberation Day tariffs. 'At the end of 90 days, whatever outcome that may be, the uncertainty remains that tariffs can be raised or reduced at any point in time,' he said. 'This will result in weakening of the global trading system, and that is going to be the new order of the day. In time to come, this will be the new landscape.' Trade-reliant economies, such as Singapore – whose trade is three times the size of its economy – would be vulnerable to these headwinds. This was why it is essential for Asean and its partners to double down and expand existing relationships, he said. Doing so would 'demonstrate to the rest of the world that despite this contestation and competition, there is still room for cooperation and collaboration'. The Straits Times is a media partner for the two-day event, whose theme for 2025 is Asia's Challenge In A Turbulent World. DPM Gan, who leads Singapore's tariff negotiations with Washington, used his 20-minute address to emphasise that a winner-takes-all approach towards trade goes against the spirit of a level playing field that the World Trade Organisation (WTO) has been advocating. In such a climate, larger economies with stronger bargaining chips can leave smaller economies in the dust. 'This is why recent moves by some countries to impose and remove tariffs at will are concerning,' he told an audience of more than 200 diplomats, bureaucrats, executives and academics. Singapore faces the baseline 10 per cent reciprocal tariff imposed by the US, although some countries across South-east Asia were hit harder with rates of more than 40 per cent. 'We must do all we can to reinforce a shared rules-based order, so that global trade can continue to be conducted on a free, fair and non-discriminatory basis,' DPM Gan said. In this regard, Japan and Singapore are partners, given the convergence in their strategic outlooks and a shared agenda to strengthen and reform multilateral institutions. The two countries mark 60 years of diplomatic ties in 2026, an occasion that lends itself to the opportunity for new areas of collaboration such as digital trade, supply chain resilience and the green transition. DPM Gan reiterated Singapore's hopes for Japan to play an even bigger role in the upkeep of regional peace and stability – a point that Singapore's political leaders have made repeatedly in recent years. 'Singapore stands ready to work with Japan as a trusted and reliable partner, and we hope to step up our economic and security cooperation in time to come,' he said. Japan's expanding role in regional security comes despite its history as a wartime aggressor. But the tides have changed 80 years since its surrender, with Japan now relied upon as a staunch defender of a rules-based multilateral order. This order is now under attack, with assertive behaviour in regional waters, as well as international conflicts both on the battlefield and in trade. DPM Gan said the world is facing three key fundamental challenges today: - How can Asia maintain strategic autonomy amid intensifying US-China contestation? - How can we preserve the rules-based, multilateral trading system that underpins Asia's economic growth and development? - How do we address global threats and protect the global commons? For one thing, the persistent risk of flare-ups between the world's two largest economies could well spread beyond trade into other areas such as investments, supply chains and critical technology, DPM Gan warned. 'While both powers claim that they do not wish to force countries to take sides, each seeks to draw others closer to their respective orbits,' he said. This makes it all the more paramount for Asian countries, which maintain close ties with both powers, to 'continue to maintain our strategic autonomy and act in a principled and consistent way on the basis of our own national interests', he added. It was also in Asia's interests to modernise the WTO, DPM Gan said, noting: 'While the system is not perfect, we must not abandon it. Instead, we should reform it and make it better.' Among his suggestions were to review the existing consensus-based decision-making processes such that they do not 'end up a recipe for gridlock' and to update the WTO rulebook to address emerging issues. Other institutions such as the World Health Organisation, International Monetary Fund and World Bank cannot be allowed to fail, DPM Gan said, as this would impair the world's ability to respond to future crises like pandemics or recessions. The key way to prevent this was to entrench relationships – especially in areas where the collective commitment already seems to be waning, such as in climate change – by deepening existing ones and forging new ties. He noted how Asean, which earlier this week concluded talks on upgrading its trade in goods agreement, was looking to deepen economic ties with the Gulf Cooperation Council (GCC). This includes a potential free trade agreement between Asean and the GCC, as well as its possible admission to the 15-nation Regional Comprehensive Economic Partnership, which now comprises Asean, Australia, China, Japan, New Zealand and South Korea. The more vigorous Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), too, is looking at how to broaden economic partnerships, including with Asean and the European Union. The CPTPP comprised 11 founding members after the US pulled out – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – with Britain acceded as the 12th member in 2024. Singapore supports cementing multilateralism, including by expanding the CPTPP if countries can meet its stringent criteria, with DPM Gan noting China and Indonesia as among countries that have indicated interest. 'These new alliances will facilitate effective and timely collaboration on key trade policy issues, and signal our commitment to a rules-based trading system,' he said. There are also measures driven by like-minded countries, such as a WTO Joint Statement Initiative on E-commerce that Japan, Singapore and Australia co-led in 2019 and now involves 91 members, accounting for more than 90 per cent of global trade. Despite unsuccessful efforts to formally incorporate the initiative within the WTO in February, the countries are exploring how to implement the agreement in the interim. 'This is one example of 'flexible multilateralism', where we allow like-minded partners to move ahead on important issues of mutual interest, such as e-commerce, while leaving the door open for others to join as and when they are ready,' DPM Gan said. Other areas for collaboration with Asean include deeper digital integration and cross-border payment connectivity, and what DPM Gan described as a 'cross-border flow of electrons'. Referring to plans for an Asean Power Grid by 2045, which would facilitate the flow of renewable energy across borders and reduce the reliance on fossil fuels, he said: 'Asia is at the epicentre of the battle against climate change'. He added: 'There is urgency to galvanise global action not only for climate mitigation measures, but also to accelerate the green transition.' During his three-day visit to Tokyo ending on May 29, DPM Gan also met Japan's Chief Cabinet Secretary Yoshimasa Hayashi, Economic Security Minister Minoru Kiuchi, as well as Economic Revitalisation Minister Ryosei Akazawa, who is leading Japan's tariff negotiations with the US. - The Straits Times/ANN
Business Times
29-05-2025
- Business
- Business Times
Agile partnerships can help Asia face global challenges: DPM Gan
[SINGAPORE] Flexible partnerships are one of three ways that Asia can tackle global challenges, alongside deepening integration and reforming institutions, said Deputy Prime Minister Gan Kim Yong on Thursday (May 29), on the last day of a working visit to Tokyo. Such 'flexible multilateralism' could involve moving ahead first with like-minded partners, while 'leaving the door open for others to join when they are ready', he said in a speech that was streamed online. He was speaking at the two-day 30th Nikkei International Forum on the Future of Asia, themed 'Asia's Challenge in a Turbulent World'. As an example of flexible multilateralism, DPM Gan cited the World Trade Organization (WTO) Joint Statement Initiative (JSI) on E-commerce, with Japan, Singapore and Australia as co-conveners. JSIs allow groups of WTO members to address specific issues, in contrast to the usual WTO negotiations which require unanimity. The JSI on E-commerce now involves 91 members that account for over 90 per cent of global trade. An attempt to incorporate the JSI into the WTO framework this February failed – but the co-conveners are continuing to pursue this, and are exploring options to implement the agreement in the meantime, said DPM Gan. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up New alliances can also be forged by building on existing economic groupings and plurilateral agreements, he added. 'These new alliances will facilitate effective and timely collaboration on key trade policies, and signal our commitment to a rules-based trading system.' He noted Asean's efforts to deepen economic cooperation with the Gulf Cooperation Council – raised by Prime Minister Lawrence Wong at the Asean Summit earlier this week – including through a possible free trade agreement (FTA) between the blocs. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is an opportunity to broaden economic partnerships with Asean and the European Union. Fundamental challenges This is one of the ways that Asia can meet three 'fundamental challenges' that it faces, beyond the economic fallout from US tariffs, said DPM Gan. The first challenge is maintaining 'strategic autonomy' amid intensifying US-China contestation, with both powers seeking to influence others. This affects many Asian countries that have deep trade and investment ties with both – but countries need to maintain autonomy and act in 'a principled and consistent way', in their own and the region's interests, said DPM Gan. The second challenge is preserving the rules-based, multilateral trading order. This is based on predictable tariff terms, with clear and shared frameworks for non-tariff policies, including the 'most favoured nation' principle underpinning the WTO. If members trade only on their own terms, larger economies will have more bargaining power, while smaller ones may be marginalised, said DPM Gan. 'This is why recent moves by some economies to impose and remove tariffs at will are concerning.' The third challenge is tackling global threats such as climate change and protecting the global commons. Given the need for urgent action, it is disconcerting that a collective commitment to climate-related treaties seems to be waning, said DPM Gan. He warned that if the commitment to international institutions – such as the WTO, World Health Organization, International Monetary Fund and World Bank – similarly weakens, the world will be less able to tackle issues such as future pandemics or financial crises. Integration and reform Besides agile partnerships, Asia can face these challenges by doubling down on regional integration and reforming organisations such as the WTO, said DPM Gan. On regional integration, Asia must enhance its trade, digital and physical connectivity, and 'raise the ambition' for existing partnerships. For instance, Asean has concluded talks to upgrade its Trade in Goods Agreement, and is working to upgrade FTAs with other partners. As cross-border payments are a key enabler of the digital economy, some Asean countries are working with India on a real-time payment network, he noted, inviting more Asian countries to join the project. Asia can also explore cross-border energy flows, he added. Not only will the Asean Power Grid enable the region's low-carbon transition, it also presents opportunities for green investments, he said. He welcomed financing support from the World Bank and Asian Development Bank, as well as from Japan. Finally, Asia can work with partners to reform global institutions, particularly the WTO. While imperfect, the organisation remains 'an important foundation on which to build a better global, rules-based trade architecture', he said. Such reforms include enabling flexible agreements such as the JSI on E-Commerce to move forward within the WTO framework. The existing consensus-based decision-making process should also be reformed to avoid gridlock, while the WTO rulebook should be updated to address issues such as state subsidies and industrial policy, and respond to the digital revolution and climate change. Japan-Singapore collaboration DPM Gan's visit comes ahead of Japan and Singapore's 60th anniversary of diplomatic relations in 2026. On the trip, he met Japanese political and business leaders, and the countries reaffirmed their close and longstanding ties. Noting that Japan invested significantly in Singapore when the latter was industrialising in the early 1970s, DPM Gan added that there will be more investment opportunities, with Singapore as a growing Asian hub and a gateway to South-east Asia. Beyond economics, both countries can cooperate in areas such as climate action and defence, he added. In a question-and-answer session after his speech, DPM Gan was asked what advice he would give Japan and its businesses, given the country's 'struggling' economy. In response, he noted that Japan's economy remains 'very significant' with 'very innovative' businesses, and highlighted scope for cooperation with Singapore. He encouraged Japanese startups to set up in Singapore, adding that the Republic also encourages its startups to enter Japan, tap its technologies and explore opportunities to collaborate.
Business Times
29-05-2025
- Business
- Business Times
Agile partnerships can help Asia face global challenges: Gan Kim Yong
[SINGAPORE] Flexible partnerships are one of three ways that Asia can tackle global challenges, alongside deepening integration and reforming institutions, said Deputy Prime Minister Gan Kim Yong on Thursday (May 29), on the last day of a working visit to Tokyo. Such 'flexible multilateralism' could involve moving ahead first with like-minded partners, while 'leaving the door open for others to join when they are ready', he said, in a speech that was streamed online. He was speaking at the two-day 30th Nikkei International Forum on the Future of Asia, themed 'Asia's Challenge in a Turbulent World'. As an example of flexible multilateralism, DPM Gan cited the World Trade Organization (WTO) Joint Statement Initiative (JSI) on E-commerce, with Japan, Singapore and Australia as co-conveners. JSIs allow groups of WTO members to address specific issues, in contrast to usual WTO negotiations which require unanimity. The JSI on E-commerce now involves 91 members that account for over 90 per cent of global trade. An attempt to incorporate the JSI into the WTO framework this February failed – but the co-conveners are continuing to pursue this, and are exploring options to implement the agreement in the meantime, said DPM Gan. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up New alliances can also be forged by building on existing economic groupings and plurilateral agreements, he added. 'These new alliances will facilitate effective and timely collaboration on key trade policies, and signal our commitment to a rules-based trading system.' He noted Asean's efforts to deepen economic cooperation with the Gulf Cooperation Council – raised by Prime Minister Lawrence Wong at the Asean Summit earlier this week – including through a possible free trade agreement (FTA) between the blocs. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is also looking at how to broaden economic partnerships with Asean and the European Union. Fundamental challenges This is one of the ways that Asia can meet three 'fundamental challenges' that it faces, beyond the economic fallout from US tariffs, said DPM Gan. The first challenge is maintaining 'strategic autonomy' amid intensifying US-China contestation, with both powers seeking to influence others. This affects many Asian countries that have deep trade and investment ties with both – but countries need to maintain autonomy and act in 'a principled and consistent way', in their own and the region's interests, said DPM Gan. The second challenge is preserving the rules-based, multilateral trading order. This is based on predictable tariff terms, with clear and shared frameworks for non-tariff policies, including the 'most favoured nation' principle underpinning the WTO. If members trade only on their own terms, larger economies will have more bargaining power, while smaller ones may be marginalised, said DPM Gan. 'This is why recent moves by some economies to impose and remove tariffs at will are concerning.' The third challenge is tackling global threats such as climate change and protecting the global commons. Given the need for urgent action, it is disconcerting that a collective commitment to climate-related treaties seems to be waning, said DPM Gan. He warned that if the commitment to international institutions – such as the WTO, World Health Organization, International Monetary Fund and World Bank – similarly weakens, the world will be less able to tackle issues such as future pandemics or financial crises. Integration and reform Besides agile partnerships, Asia can face these challenges by doubling down on regional integration and reforming organisations such as the WTO, said DPM Gan. On regional integration, Asia must enhance its trade, digital and physical connectivity and 'raise the ambition' for existing partnerships. For instance, Asean has concluded talks to upgrade its Trade in Goods Agreement, and is working to upgrade FTAs with other partners. As cross-border payments are a key enabler of the digital economy, some Asean countries are working with India on a real-time payment network, he noted, inviting more Asian countries to join the project. Asia can also explore cross-border energy flows, he added. Not only will the Asean Power Grid enable the region's low-carbon transition, it also presents opportunities for green investments, he said. He welcomed financing support from the World Bank and Asian Development Bank, as well as from Japan. Finally, Asia can work with partners to reform global institutions, particularly the WTO. While imperfect, the organisation remains 'an important foundation on which to build a better global, rules-based trade architecture', he said. Such reforms include enabling flexible agreements such as the JSI on E-Commerce to move forward within the WTO framework. The existing consensus-based decision-making process should also be reformed to avoid gridlock, while the WTO rulebook should be updated to address issues such as state subsidies and industrial policy, and respond to the digital revolution and climate change.
