The UK and Singapore reaffirmed their commitment to enhancing collaboration in sustainable finance and fintech during the eighth UK-Singapore Financial Dialogue, held in London yesterday. The discussions centered around strategies to accelerate the transition to net-zero financing and tackle emission reduction challenges.
During the dialogue, Singapore highlighted several initiatives aimed at facilitating energy transitions across Asia. Additionally, both nations reflected on the previous dialogue in November 2022, which focused on establishing a Fintech Bridge to foster deeper cooperation in their fintech sectors.
The two countries collectively acknowledged the importance of endorsing global sustainability standards and reporting frameworks, explicitly supporting the International Sustainability Standards Board (ISSB). They emphasized the immediate need to prioritize Environmental, Social, and Governance (ESG) considerations while promoting transparency in ESG data sharing.
The adverse impacts of nature loss and biodiversity were also explored, with both governments recognizing the necessity for greater attention. They introduced a collaborative research initiative on nature-related financial risks in Southeast Asia, undertaken by Cambridge’s Institute for Sustainability Leadership in partnership with the Singapore Green Finance Centre.
Laimonas Noreika, CEO of HeavyFinance, emphasized that sustainable finance needs to be central to government and corporate strategies. He expressed optimism about ongoing international discussions surrounding transition finance and standards, stressing the importance of translating these conversations into concrete actions that can lead to meaningful climate benefits. He noted that sustainable investment initiatives, such as Article 9 funds, are crucial for backing carbon reduction efforts.
The Dialogue also addressed advancements in digital assets, where both the UK and Singapore endorsed global standards and guidance from the Financial Stability Board (FSB) on cryptocurrencies. The nations exchanged insights into their respective journeys towards central bank digital currencies (CBDCs), aiming for interoperability between the UK’s Digital Pound and Singapore’s digital Singapore Dollar.
Ganesh Viswanath Natraj, an assistant professor of finance at the Gillmore Centre for Financial Technology, remarked that international collaboration in key sectors such as fintech is essential for bolstering UK innovation and reinforcing its position as a premier business hub. He noted the significance of digital assets in fintech evolution and expressed hope that the UK will take a leading role in shaping global regulatory frameworks while ensuring it does not stifle research and development activities.
Sheeraz Saleem, CTO at DKK Partners, highlighted the UK’s proactive stance in developing digital assets to facilitate lower foreign exchange costs and enhance cross-border trade. He pointed out the potential benefits that digital currencies could bring in terms of economic management, especially in light of the current challenges posed by inflation and rising interest rates.
Earlier this year, Singaporean wealth management firm iFast made headlines with the launch of a digital banking platform in the UK, further exemplifying the growing nexus of innovation between the two nations.