It was reported in the Straits Times today that Singapore and India have signed an agreement that enables fintech companies from both countries to market-test innovative financial products in both markets (‘Singapore, India sign agreement for fintech firms to market-test products’, 19 Sep 2022).
It is said that both countries will now operate a joint regulatory sandbox, with yesterday’s (18 Sep) signing of the FinTech Cooperation Agreement between the Monetary Authority of Singapore (MAS) and the International Financial Services Centres Authority (IFSCA) of India.
A regulatory sandbox allows companies to test their financial products and services with actual customers without the need for any full licensing.
The signing was witnessed by Singapore newly appointed Deputy Prime Minister Lawrence Wong who is slated to become Singapore’s next Prime Minister.
DPM Wong was optimistic that the newly signed agreement will help create new jobs.
He said, “I hope this will spur innovation, create new jobs and investments, and further strengthen the development of the fintech industry in both Gujarat and Singapore.”
The agreement was signed in the Indian state of Gujarat yesterday. Gujarat is the home state of Indian PM Narendra Modi and Singapore is the state’s second-largest investor.
Said DPM Wong in his Facebook posting after the signing ceremony, “Singapore and Gujarat enjoy a close and broad-based relationship. Singapore is the second largest investor in Gujarat. Meanwhile, Gujarat accounts for nearly 30% of India’s exports to Singapore.”
“This is why I was very happy to meet Gujarat Chief Minister, Bhupendra Patel,” he added. “I look forward to deepening our relationship with Gujarat and India for many years to come.”