The UK and Singapore recently held their 8th UK-Singapore Financial Dialogue exchanging views on, and identifying opportunities for further collaboration in, priority areas including fintech and innovation and sustainable finance.
Fintech
Notable points from discussions on fintech and innovation include:
- agreement from both countries to contribute to the development of global regulatory standards for crypto and digital assets as part of international standard setting bodies such as IOSCO, and working groups under the Financial Stability Board, as well as updates on recent regulatory activity in the industry (e.g. the Future Financial Services Regulatory Regime for Crypto-assets consultation, and the regulatory rules for marketing crypto-assets).
- updates from the UK on the “Digital Pound” consultation and plans for the current design phase as well as on Singapore’s approach to exploring a digital Singapore Dollar.
- Singapore’s private-public sector collaborative initiative to test the potential and feasibility of asset tokenisation.
- the outcome of the Monetary Authority of Singapore’s review of e-wallet caps, including the increase to the relevant limits imposed on e-wallets.
Sustainable Finance
Discussions on sustainable finance included:
- agreement that globally comparable and transparent transition plans can help reduce fragmentation, scale transition finance, and support sustainability in finance more generally, recognising the value of increased cooperation on transition plans to mobilise emission reductions.
- updates on Singapore’s focus on scaling blended finance and addressing energy transition needs in Asia, its Finance for Net Zero Action Plan and initiatives to mobilise green and transition financing to catalyse Asia’s net zero transition.
- from the UK’s perspective, updates on the Transition Plan Taskforce’s work to finalise its disclosure framework.
- reaffirming both countries’ continued support for a global framework of sustainability disclosures based on the ISSB final standards for general reporting on sustainability and for climate-related disclosures.
- recognition of the need to deepen the understanding of nature and biodiversity loss and its impact on the financial sector.
The UK and Singapore renewed their commitment to engagement through a series of roadmap engagements. Both countries agreed to cooperate further on sustainable finance and fintech before the next Financial Dialogue in 2024.