(Yicai Global) April 12 -- Singapore aims to play a greater role in providing financial support for projects in countries included in the Belt and Road Initiative, the city-state’s Prime Minister says.
Singapore and China will work together on integrating infrastructure construction and linking financial services in Belt and Road nations, as well as offering legal and mediation services for commercial disputes, Singaporean Prime Minister Lee Hsien Loong said at the 2018 DBS Asian Insights Conference held in Shanghai today.
Often compared with the ancient Silk Road, the One Belt, One Road initiative was proposed by Chinese President Xi Jinping in 2013. It is a grand 30- to 40-year plan for a vast infrastructure and trade route boasting a major network of railroads, highways, ports and pipelines embracing the continents of Asia, Europe and Africa. Singapore, with its highly developed economy and advanced technological infrastructure, sits at a key strategic point.
The development of bilateral cooperation between the two countries can be boosted by their respective commercial banks. Banks from Singapore and China operate quite well in each other's markets, Lee said, adding that Singapore also strongly supports the internationalization of the yuan.
Singapore’s Monetary Authority introduced the yuan to its official foreign exchange reserves in 2016, not only demonstrating Singapore’s recognition of the importance of the yuan, but also its confidence in its future development, he added.
Singapore’s investment in China makes up 85 percent of the total inflows from Belt and Road countries, while close to one-third of China’s investment in countries along the Belt and Road is redirected through Singapore.