Singapore and Brunei Darussalam enhance cooperation in financial innovation
On 12 May, the Monetary Authority of Singapore (MAS) announced that it has signed a FinTech Cooperation Agreement (CA) with the Autoriti Monetari Brunei Darussalam (AMBD) to foster innovation in financial services between Brunei Darussalam and Singapore.
The signing took place during Singapore President Mdm Halimah Yacob’s state visit to Brunei Darussalam. Signing on behalf of AMBD was Managing Director Yang Mulia Yusof bin Hj Abd Rahman of AMBD, while MAS was represented by Deputy Managing Director Jacqueline Loh. The signing was witnessed by both President Halimah and His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni AlMarhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam.
The FinTech CA between MAS and AMDB aims to facilitate the sharing of information on emerging fintech trends and developments and promote joint innovation projects between both countries. It will also establish a framework for both authorities to provide support for fintech companies to better understand the regulatory regime and opportunities in each jurisdiction.
Beyond the FinTech CA, AMBD and MAS will also work together to enhance the retail payment ecosystem between Brunei Darussalam and Singapore. Both authorities will be guided by a cooperation framework that will provide mutual benefits to businesses and consumers in the two countries.
Acting as Brunei Darussalam’s central bank, the AMBD continuously aims to commit to the achievement and maintenance of a sound and dynamic financial system through the implementation of measures and execution of financial sector reforms in line with the national economic development objectives.
These include ensuring the stability of domestic prices and the financial system –by formulating financial regulations and prudential standards; assisting in the establishment and functioning of efficient payment systems –and to oversee them; and to foster and develop a sound and progressive financial services sector. These are achieved through three core functions, chief of which is the formulation and implementation of monetary policies, the regulation and supervision of financial institutions as well as currency management.
As Singapore’s central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and stock exchanges. It also facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.
Recently, MAS announced that it is collaborating with the Economic Development Board (EDB), Infocomm Media Development Authority (IMDA) and Institute of Banking and Finance (IBF) to accelerate the adoption of artificial intelligence (AI) in Singapore’s financial sector through: (1) developing AI products, (2) matching users and solution providers, and (3) strengthening AI capabilities.
Just last month, MAS also announced that it is developing guide for responsible and ethical use of AI and data analytics by financial institutions. The guide will set out key principles and best practices for the use of AI and data analytics, helping financial institutions to strengthen internal governance and reduce risks of data misuse. It will cover all segments of the financial sector, including fintech firms.
In the upcoming Singapore FinTech Festival organised by the MAS, the festival will highlight FinTech developments and opportunities in ASEAN. Delegates from ASEAN countries will also enjoy special rates for tickets to the Festival.