The 8th UK-Singapore Financial Dialogue, held in London, marked a significant milestone in the commitment of the United Kingdom and Singapore to enhance their collaborative efforts. The Dialogue provided an opportune platform for productive discussions and the identification of various opportunities for expanding cooperation, particularly in the domains of sustainable finance and FinTech innovation.
A key focus of the discussions revolved around sustainable finance, shedding light on the pressing need for developing strategies that facilitate and bolster financing to support the transition of economies towards net-zero emissions. Both nations recognized the global necessity for transparent and comparable transition plans, a crucial step towards sustainability in finance. Noteworthy updates were provided on Singapore's efforts to scale blended finance and address energy transition needs in Asia, along with the UK's work on their Transition Plan Taskforce.
The commitment to a global framework of sustainability disclosures, based on the final standards of the International Sustainability Standards Board (ISSB), received unanimous support. The implementation of globally interoperable sustainability disclosures was acknowledged as a means to foster a simpler and more effective regulatory environment. The UK and Singapore pledged to strengthen the ISSB's implementation of the standards by sharing experiences and supporting capacity-building initiatives.
In addition, both countries highlighted the significance of gaining a deeper understanding of the loss of nature and biodiversity and its implications for the finance sector. They welcomed collaborative research projects involving prominent institutions such as the University of Cambridge Institute for Sustainability Leadership and the Singapore Green Finance Centre.
The Dialogue also witnessed discussions on the latest advancements in the digital realm. Commitments were made by the UK and Singapore to develop global regulatory standards for crypto and digital assets. The two nations also engaged in fruitful discussions about their respective approaches towards Central Bank Digital Currencies (CBDC). The UK detailed its plans for the "Digital Pound," while Singapore explored use cases for a digital Singapore Dollar.
Notably, substantial progress was noted in the development of Project Guardian, a private-public sector collaborative initiative launched by Singapore. The project aims to explore the feasibility and potential of asset tokenization. Additionally, the successful review of e-wallet caps by the Monetary Authority of Singapore (MAS) was discussed.
The cross-border arrangements between the UK and Singapore, aimed at facilitating the exchange of information related to derivatives trading venues, were also updated. Both countries acknowledged the continued value of their cooperation in support of the G20 OTC derivatives reforms.
As the Dialogue concluded, the UK and Singapore reaffirmed their commitment to advancing their partnership beyond the event. Further collaboration is planned in the areas of Sustainable Finance and FinTech Innovation before the next meeting, scheduled to be held in Singapore in 2024.
In conjunction with the Dialogue, an industry-led UK-Singapore business roundtable on sustainable finance took place, where industry participants deliberated on opportunities and challenges in achieving net-zero targets.
The Dialogue was co-chaired by Mr. Leong Sing Chiong, Deputy Managing Director (Markets and Development) of MAS, and Ms. Gwyneth Nurse, Director General (Financial Services) of HM Treasury (HMT). High-level officials from both the UK and Singapore, including representatives from MAS, HMT, the Bank of England, the Financial Conduct Authority, the High Commission of the Republic of Singapore in London, and the British High Commission in Singapore, attended the Dialogue, underscoring the significance of the collaborative efforts between the two nations.
