The Monetary Authority of Singapore proposed that land and sea trade routes connecting China and ASEAN states be digitalized to promote further growth and connectivity.
MAS managing director Ravi Menon was specifically referring to the New International Land-Sea Trade Corridor (ILSTC) which connects western China to southeast Asia.
«Covid-19 has reinforced the importance of digitalizing trade,» he said at a recent summit in Chongqing, according to a «Business Times» report.
«This would make trade flows and financing smoother, cheaper and faster between both regions, and create opportunities to tap on fintechs from China and ASEAN for innovative solutions to build this digital trade corridor.»
Digitalized Bills Of Lading
Of the suggestions made, Menon said that the industry could jointly explore the digitalization of Bill of Lading – one of the key instruments facilitating trade – as well as the creation of a sandbox for general trading along the ILSTC. Citing a recent shipment of citrus from Chongqing to Singapore in 13 days, he noted that while the has already improved there is room for more.
«Perhaps the next import of citrus to Singapore can be even faster through an end-to-end digitalized trade process along the ILSTC,» he said.
Singapore has recently demonstrated greater interest in closer financial ties in China, specifically with Chongqing. Local fintech iSTOX recently announced plans to launch a digital securities exchange in the southwestern city.
