EU erecting a green wall against Asia’s textiles

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The European Union has released new trade policies and requirements for exporting textiles to the EU market, policies that have been accused of trade protectionism. 

Among them, the June 2022 EU Strategy for Sustainable and Circular Textiles (EUSSCT) is likely to significantly impact East Asian textile makers, who supply over 70% of the European Union’s textiles.

Within the EUSSCT, a series of environmental regulations stipulate that by 2030, companies trading clothing and apparel with the European Union must adhere to standards regarding durability, the absence of hazardous substances and the predominant use of recyclable materials. 

This strategy is expected to serve as the foundational plan for the evolution towards more sustainable consumption of clothing and apparel by EU member states. In doing so, the European Union could be a pioneer in enforcing its commercial partners to adopt sustainable manufacturing.

Garment, textiles and footwear sectors remain a critical contributor to Asian economies, generating around 60 million jobs for the region and indirect employment for millions more. 

The textile industry is still growing in most East Asian countries, with the fastest growth rates recorded in China, Indonesia, Vietnam and Cambodia. 

The region is the production hub for heavyweights of the European fast fashion industry like Nike, Zara, C&A and H&M. Textiles are the fourth largest burden on the environment stemming from European consumption.

An H&M store in Shanghai. Photo: WeChat

The East Asian region is the main garment producer in the world – playing a key role in the textile and garment supply chain. In 2019, the region made up around 55% of global textiles exports. 

For example, Vietnam exported apparel, garment and textile products valued at US$37.6 billion to the global market in 2022. Out of these exports, 5.4 billion euros ($5.8 billion) went to the European Union.

The industry is seeing rapid growth, which is partly attributed to increased engagement in Southeast Asia driven by the EFTA–Singapore Free Trade Agreement and the EU–Vietnam Free Trade Agreement (EVFTA). The EVFTA has led to an increasing reliance on the EU market by Vietnamese goods.

Yet since the Covid-19 pandemic, the East Asian garment and textile industry has struggled due to lower demand in key markets, including the European Union and the United States. Textile exports from Indonesia, Malaysia, Thailand and Vietnam also fell in 2020. 

In light of this, the EUSSCT’s new regulations may impact East Asian garment and textile manufacturers more significantly than previously anticipated.

The EUSSCT is expected to pose challenges and potentially increase costs for the East Asian apparel sector. Enterprises operating within this sector should be proactive in adapting to these forthcoming regulations to ensure exports continue. 

The European Union has set 2030 as the target year for full circularity. This places pressure on textile and clothing businesses to comply with different aspects — including circularity, traceability and decarbonization.

Vietnam is angling to strike a delicate trade balance between the US and China. Photo: Reuters
A clothing boutique in downtown Hanoi. Photo: Asia Times Files / AFP / Hoang Dinh Nam

East Asian clothing and apparel producers who do not utilize recyclable materials may face heightened scrutiny. Also, this sector’s heavy water and chemical usage contributes to severe water pollution as it discharges substantial volumes of wastewater containing hazardous substances into rivers and waterways. Reducing carbon emissions will require changes to the sector’s business models and technological and process innovations.

But opportunities abound. The domestic transformation required to meet EU standards could make the region better prepared if other developed markets implement similar policies. 

Embracing green production practices can have a positive impact on the local environment and the quality of life of East Asian people. It can also open up new sustainable production and business opportunities. In turn, this could attract more foreign investment from developed countries.

Despite the challenges caused by these new regulations, companies in the region are proactively addressing them. Singapore-based Ramatex has already made strides in sustainability by researching how to create clothes that do not shed microfibers. 

In Vietnam, the Spectre garment factory relies on renewable energy to power its operations, while South Korea’s Hansae Group and the Hanoi Textile and Garment Joint Stock Corporation have collaborated to produce recycled textiles for exports to the European Union.

To some extent, opportunities for environmental progress depend on existing capabilities and other facilitating factors, including policy frameworks and infrastructure. Mitigating the environmental impact of textile manufacturing requires a systemic shift towards a circular economy. 

This transition should encompass green public procurement, eco-design, labeling and standards, and increasing producers’ responsibility. It is imperative to adopt a new development approach that is both net-zero carbon and environmentally restorative.

A substantial challenge in the sustainability transformation of the textile industry in East Asia is the limited knowledge and technical know-how regarding environmental sustainability. 

Workers supervise embroidery machines working on fabrics for wedding dresses at a small factory on the outskirts†of Islamabad on September 2, 2020. Photo: Asia Times Files / AFP / Farooq Naeem

To make the East Asian textile and apparel industry greener, key projects must be set in motion. They include investing in research and development and providing comprehensive education and training programs to increase expertise in environmental sustainability.

Governments should also enact supportive policies and incentives for sustainable manufacturing in the textile sector, including tax incentives and subsidies. These incentives should encourage the adoption of eco-friendly technologies and promote green supply chain practices.

International and domestic collaborations to share best practices and strategies for sustainability are also vital. By addressing these issues, East Asian textile and apparel manufacturers can better position themselves to meet the evolving standards of the European market and improve their sustainability.

Associate Professor Dr Hoang Hai Ha is Senior Lecturer at the Faculty of History, Hanoi National University of Education.

This article was originally published by East Asia Forum and is republished under a Creative Commons license.

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Exploring Southeast Asia’s logistics horizon

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In: Technology

SEA’s logistic market value expected to reach $55.7 billion by 2025
Sector thrives on fast economic growth, positive macroeconomic factors

The ongoing problem of high logistics costs exacerbated by Covid-19, has affected Southeast Asia due to disruptions in supply and demand, geopolitical and economic uncertainties, surging inflation, and other factors. However, the region’s…Continue Reading

Google Cloud appoints Serene Sia to lead Singapore business

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In: Technology

Will lead go-to-market strategy, operations, and partner ecosystem
Brings 30+ years of diverse business and software technology leadership in Asia

Google Cloud announced the appointment of Serene Sia (pic) as country director of its business in Singapore. 
In a statement, the firm said Sia will be responsible for leading go-to-market strategy and operations spanning…Continue Reading

Chinese media missing the mark on Myanmar

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While many have expressed disappointment with the limited attention from the West regarding Myanmar’s political crisis, it is especially surprising that Myanmar’s neighboring countries have not exhibited more interest. 

A perusal of Chinese newspapers – Myanmar’s most substantial neighbor – reveals scant coverage of the Myanmar population’s distress and the resistance forces opposing the military junta, the State Administration Council (SAC).

This media oversight is not a coincidence. Politically speaking, the Chinese government may be apprehensive of its citizens drawing parallels or being influenced by Myanmar’s democratic struggles, especially in an era where information spreads rapidly across digital platforms.

In a heavily censored information environment, Beijing is not interested in providing news coverage about the violence inflicted by the SAC on its citizens or footage of armed rebellions by ethnic armed organizations (EAOs) and the anti-military People’s Defense Forces. 

Despite the ongoing civil war, widespread resistance and associated violence, few in China are aware of what is going on in Myanmar. And even though Beijing has significant economic and strategic interests in Myanmar and has a strong preference for stability in the country, Chinese domestic media has been silent since the 2021 coup.

Much of China’s domestic population is not interested in learning about their neighboring countries. Despite China’s rapid ascent as a global powerhouse, there seems to be limited interest in the affairs of less affluent countries like Myanmar, perhaps except from those residing in Yunnan or areas directly bordering Myanmar. Attention is either focused domestically or oriented toward more developed nations in the West and East Asia.

Some of China’s neighboring countries, despite geographical proximity and historical ties, often find themselves overshadowed in public discourse, with their challenges and successes receiving less scrutiny from the average Chinese citizen. 

This has inadvertently marginalized the significance of Myanmar’s challenges, relegating them to the periphery of public discourse in China. It is an ironic situation, given the profound implications Myanmar’s stability and political changes hold for China. The woes of Myanmar – from its political upheaval to the struggles of its people – have limited resonance among the Chinese public.

But Myanmar has not disappeared from China’s domestic media coverage. The Chinese public’s primary interest in Myanmar revolves around its role as a hub for criminal networks involved in online scams.

These operations are often based in the border regions Myanmar shares with Thailand and China. These areas are marked by fragmented control among ethnic armed groups, militias and border guards and are exploited by criminal networks. 

They primarily target Chinese citizens but also those from other nearby countries, leading to significant financial losses and a surge in related crime. In response, the Chinese government has intensified its law enforcement efforts, either by collaborating with regional governments or directly intervening to combat these cross-border operations.

Myanmar has garnered a negative reputation in China, with some domestic media outlets portraying the country as a “living hell.” Reports often highlight how these criminal networks engage in scam operations, drug production and rampant human trafficking, describing accounts of the mistreatment and suffering of Chinese people. 

Some reports even sensationalize accounts of tourists being kidnapped from Thailand and smuggled across the border into Myanmar’s Kayin state.

Public outrage has compelled the Chinese government to adopt a more assertive stance concerning Myanmar’s internal matters. Beijing has pressured the SAC to cooperate in actions related to countering online scams. But Beijing recognizes that many territories where these scam operations are based are not under the SAC’s control.

China has also notably pressured some EAOs in Myanmar for cooperation. In September 2023, hundreds of criminals were repatriated from the Wa state across the Chinese border. At the same time, two Chinese courts have officially charged two leaders from the Wa state for involvement in scam operations. Reports suggest that more will be repatriated to China.

Amid the ongoing developments in Myanmar, China has primarily focused on matters that directly impact its own interests. The broader Chinese public seems either unaware or unengaged with Myanmar’s population and their concerns. 

This asymmetrical attention from China towards Myanmar warrants careful consideration in studies of the bilateral relationship between the two countries and in assessing the future of Chinese influence in Southeast Asia.

Enze Han is Associate Professor at the Department of Politics and Public Administration, University of Hong Kong.

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Emerging digital technology, alternative data and financial inclusion in Cambodia – Southeast Asia Globe

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Securing a loan can be a life-changing event, allowing people to access the capital necessary to start a business, buy a home, and invest in their future. But for Cambodia’s large underbanked and unbanked population, difficulty in accessing financial services, and an absence of the financial data used to assess creditworthiness, can make getting a loan challenging. According to the National Bank of Cambodia, only 59 percent of the adult population have access to formal financial services, leaving 41 percent either accessing informal financial services or no financial services at all.

However, developments in Cambodia’s lending landscape offer cause for optimism. The explosion in Cambodia’s fintech ecosystem, paired with the growing potential of alternative-data credit frameworks, could provide a path towards financial inclusion for those previously left out of the conversation.

Acccording to Ms. Phal-Chalm Theany, Secretary General of the Association of Banks in Cambodia, “Alternative data has tremendous potential for contributing to financial inclusion by complementing traditional financial data that banks have. They range from information on mobile wallet transactions to information on user behavior on digital platforms that can be utilized for risk assessment of individuals and MSMEs.” 

Most financial institutions use debt repayment history and bank and credit files to determine the creditworthiness of potential borrowers. Driven by digitalisation and developments in technologies such as data analytics and machine learning, alternative credit scoring is based on any form of non-traditional information that can provide insights into the ability and propensity of borrowers to pay back loans. Telecom and utility payment histories, as well as digital footprints and mobile data, can all be utilised to assess creditworthiness within these frameworks.

Banks in Cambodia are increasingly looking to tap alternative data for serving the unbanked and underbanked.

“Data in Cambodia is still very much fragmented and held across multiple organizations and institutions,” said Mr. Mach Chan, CEO of Phillip Bank in Cambodia. “Many people do not have formal loans from financial institutions. This makes it challenging to predict their repayment capacities. If Phillip Bank can easily assess aggregated alternative data, we can better assess a borrower’s creditworthiness based on their social and behavioral indicators, and spending patterns and habits. This allows us to form a more complete picture of the borrower’s risk profile, with opportunities to offer cheaper loans to less risky customers, regardless of whether they are banked. Additionally, many SMEs are not formally registered making lending a challenge. If banks can access the payments data of these MSMEs, the financial Industry will be more confident to support the needs of these businesses.”

Across Southeast Asia, governments, banks and key stakeholders are becoming increasingly interested in the potential of alternative data as a tool to expand the scope and accessibility of financial services.

A Southeast Asia-focused report published by the World Bank Group in 2021 highlights four new data types that have emerged as part of the evolving digital ecosystem, and which can aid credit decision-making: mobile operator and app-based data, digital payments, e-commerce data and enterprise-tech (business-performance) data. Such alternative data has also been highlighted by the Asian Development Bank as one of the key areas for driving financial inclusion in Southeast Asia. 

Across the region, governments, banks and key stakeholders are becoming increasingly interested in the potential of alternative data as a tool to expand the scope and accessibility of financial services.

In December 2022, the National Credit Bureau of Thailand announced the plan to launch a non-credit data centre by consolidating such data into NCB’s existing credit database with initial application of utility payment data from Electricity and Water Utilities.

In Indonesia, Experian collaborated with a telecom company to uplift financial inclusion by using data from telco to provide advanced credit assessment to empower unbanked and underbanked.

In the Philippines, Credit Information Centre (CIC) is working on an open policy to enable accessing entities to utilize credit bureau data with alternative data to come up with a complete picture of a borrower’s credit profile.

In the context of Cambodia, utility bill payment and telco payment data can serve as important sources of alternative credit data. Moreover, with rapid digitalization along with adoption of digital payments, there should be enormous potential to tap a wide array of alternative data on payments and digital footprints. Around the world, such data have served as key drivers for digital financial inclusion. 

With a rise in digital financial service providers, digital payment catalysts and e-commerce in Cambodia, massive amounts of alternative data are already generated at present. Given this scenario, it is important to have an organized ecosystem to collect, process and utilize such alternative credit data.

On the regulatory front, the National Bank of Cambodia revised the prakas on credit reporting in 2020, enabling Credit Bureau Cambodia (CBC) to collect alternative data along with traditional credit data to support financial institutions to strengthen credit risk assessment capabilities.  

CBC was established in 2012 with the support of the National Bank of Cambodia, the Association of Banks   in Cambodia and other key stakeholders in the sector to manage a fair and transparent credit market in support of the nation’s economic development. Since then, CBC has become the leading body providing financial information in the country. Although currently CBC only manages traditional data reported by member banks and financial institutions, it is preparing an ambitious roadmap to collaborate with multiple sectors in the country. Its plan is to establish a comprehensive alternative credit data ecosystem that can work together with the traditional credit data ecosystem for social and economic benefits to Cambodians.

“I would say Cambodia stands a decade ahead of other emerging market economies because of the Credit Bureau and the lending environment,” explained Gordon Peters, co-founder and CEO of fintech firm Boost, which harnesses popular social media platform such as Facebook and Telegram to enable access to finance. “CBC has done a great job of collecting, collating and sharing data on the financial lives of customers,” he said. “I think that is a huge unlock.”

For Peters and company, CBC establishes a level of legitimacy and security that has benefited Cambodia’s financial sector and allowed his firm to fill a gap in the ecosystem. Banks and financial institutions have a high degree of confidence and trust in the role of CBC as a key financial data infrastructure in the country. For a company that already manages credit history data of more than 7 million individuals and businesses, expanding the capabilities to manage alternative data reporting system looks plausible.

Ms. Phal-Chalm Theany, Secretary General of the Association of Banks in Cambodia

Ms. Theany elaborated: “CBC is a data centre for the financial sector that collects data from banks and financial institutions, stores and analyses them for the purposes of credit scoring for those financial institutions. Where each bank and financial institution may have its own data, CBC has the financial information for the whole sector.

“With strong capabilities in data analytics, artificial intelligence and machine learning, CBC is uniquely positioned to harness alternative data from diverse data sources to enable banks and financial institutions to conduct better assessment of the profile of the unbanked (mainly women and farmers) and informal small businesses, estimate income with more precision. This shall enable financial institutions to offer more appropriate credits or other financial services in the absence of a financial footprint, credit histories or property guarantees.”

Mr. Chan added: “CBC could spearhead the aggregation of payments, telco and utilities data. These datasets are then fed into a prospective customer’s credit score. Over the past few years, with NBC’s Bakong as a key enabler, we’ve seen a rapid digitization of payments. We believe that when assessing customer creditworthiness, payments data is just as important as borrowing and repayment data, and should be prioritized. At the same time, CBC would need to seek the cooperation of their member financial institutions to provide these datasets. For SMEs, we also see data from GDT as an important asset. If CBC could connect and obtain data with GDT, it will allow the banks to form better assessments for clean loans, spurring economic activity.”

Currently, CBC provides K-Score, an algorithmic credit score (ACS). ACS uses machine-learning algorithms to analyse massive data sets to produce credit scores without traditional financial information. This is the only industry level credit score available in Cambodia. First launched in 2015, CBC did a major revamp of the algorithms in 2020 to keep up with the evolving changes in the market landscape. Today, K-Score is available to all member financial institutions of CBC and (via CBC’s mobile app) to all individuals as well.

Example of a K-Score from CBC

A 2023 report in the Asian Journal of Law and Science states: “ACS is the tip of the spear of the global campaign for financial inclusion, which aims at including unbanked and underbanked citizens in financial markets and delivering them financial services, including credit, at fair and affordable prices.” The study outlines the wide ranging benefits of ACS and alternative data as tools to benefit individuals across Southeast Asia who lack access to financial services.

In the Cambodian context, Credit Bureau of Cambodia is well positioned to lead the way in leveraging these tools. To make sense of the massive datasets now available thanks to digitalisation, CBC utilises a host of ACS tools. Machine-learning algorithms and other artificial intelligence mechanisms allow for the analysis of data at a scale that was previously impossible. Risk analysis profiles and loan portfolios that are regularly updated and refined are just a couple of the ways these technologies can be leveraged using alternative data. While the power of these tools is certainly important, CBC’s experience in the sector — and its standing as the leading institution managing, analysing and providing financial data — are the most compelling reasons for the adoption of alternative data schemes in Cambodia.

“As we are entering our second decade of credit reporting in Cambodia, CBC is committed to being a trusted (element in the) national financial infrastructure for providing alternative credit data, to strengthen credit risk assessment for our 190-plus member financial institutions, and to expand access to credit for the new-to-credit consumer segments. We are very open to collaborate with alternative data providers such as telcos, utilities and payment service providers to harness information not found in traditional credit reports, to help more Cambodians obtain access to mainstream financial services,” explained CBC CEO, Oeur Sothearoath.

As CBC leverages its established presence in the financial sector, a growing pool of innovators is working with the agency to develop and facilitate the alternative data ecosystem.

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Commentary: US will only have itself to blame if China’s economic influence in Asia grows

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LIVING AND DYING BY DOMESTIC POLITICS

The IPEF was challenging to negotiate from the outset, its demands and constraints a product of US domestic politics.

The lack of access to the US market removed a key incentive from the American negotiating toolkit. It was an effort to avoid a sensitive political issue: American public opinion has become generally less supportive of free trade due to the perception that cheap foreign goods are displacing American products, especially in key swing states and unions.

Believing that “deep trade liberalisation” failed to protect American jobs and capacity, Biden’s administration bucked decades of free trade promotion to aggressively subsidise favoured industries in its competition with China. US$39 billion in manufacturing incentives was allocated under the CHIPS Act alongside US$370 billion in investments for clean energy under the Inflation Reduction Act to grow the US industrial base.

Meanwhile, labour and environmental standards were always a hard sell to partners such as Vietnam and Indonesia. These US demands tapped on these growing sentiments against free trade.

A common rallying call was that trade deals need to ensure strong labour and anti-dumping standards so American workers can compete on a “level playing field” – not just with Chinese workers, but with supply chains linked to China as well.

Yet, the IPEF was still vulnerable to the domestic forces it sought to appease. As a White House initiative, the IPEF was unlikely to garner financial support from a split Congress and could also be cancelled with a simple executive order by a future president.

Negotiators likely understood that the odds were stacked against them. The timeframe to complete IPEF negotiations was also relatively short at two years, compared to seven years for the TPP.

Ultimately, after months of disquieting rumours, the end came when the finish line was in sight. Pushback from lawmakers, such as Senator Sherrod Brown who is facing a tough re-election campaign, derailed negotiations on the trade pillar, leaving IPEF on life support.

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Two blockchain firms to be added to MAS’ licensing list | FinanceAsia

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In: Asia, Finance, South-East Asia

Two crypto firms have recently announced that they have obtained in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) to provide digital asset-related offerings compliant with the watchdog’s requirements.

Through the licensing scheme under the city state’s Payment Services Act, MAS regulates seven types of payment services, including account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, e-money issuance, digital payment tokens and money-changing.

Singapore-headquartered StraitsX acquired its licence as a major payment institution (MPI) for digital payment token services, while Taiwan-based XREX’s Singapore entity received approval covering six service categories except for money-changing services.

Upon receiving the licence, StraitsX will focus on issuing two single-currency pegged stablecoins (SCS) that are 1-1 pegged to Singapore dollars (XSGD) and US dollars (XUSD), respectively.

XSGD is currently available for minting and redemption via StraitsX’s platform, while XUSD is under development and will be released to the public in the near future, FinanceAsia has learned..

“The in-principle approval from  the MAS allows us to demonstrate compliance with the regulatory framework for stablecoin issuance,” Kenny Chan, head of StraitsX, said.

“We see potential in single-currency pegged stablecoins as a credible and reliable medium to facilitate innovations in payment transactions both domestically and across borders,” he added.

Citing the purpose bound money (PBM) testing led by MAS as an example, Chan emphasised the programmability and interoperability of stablecoin-powered payment solutions and explored use cases, including programmable rewards and escrow arrangements for online commerce.

“Stablecoins play a significant role in the digital asset ecosystem as they frequently form the bridge to the fiat leg of a transaction,” said Etelka Bogardi, Asia head of fintech and financial services regulatory, partner at Norton Rose Fulbright.

“It was therefore important to safeguard financial stability and consumer protection in this space.”

She added that as one of the frontrunners in stablecoin regulation, Singapore’s licencing regime has introduced important safeguards through reserve management and redemption mechanics requirements.

The MAS is also expected to introduce a regulatory framework under the Payment Services Act, which will be dedicated to stablecoin-related issuance and intermediation activities. The framework is set to be finalised in Augustafter a public consultation which started in October 2022.

“We believe that the regulatory clarity provided in the finalised framework, as well as Singapore’s position as a trusted hub for global business will provide a strong foundation for the issuance of stablecoins pegged to other G10 currencies,” Chan remarked.

Blockchain benefit

XREX’s business focusses on blockchain-based cross-border payment technology. The Taiwan-based team will useXREX Singapore as their Asia Pacific (Apac) headquarters, and look to expand its payment product that supports fiats, stablecoins and cryptocurrencies in the region.

Christopher Chye, chief executive officer (CEO) at XREX Singapore, told FA that the approval process took approximately two years’ , which he referred to as “hard fought” in a company press release. The team is looking to elevate the in-principle approval to a full licence over the next six months, he added.

“Blockchain technology has the potential to decimate transaction fees, facilitate atomic settlement and enable programmable money,” he said.

Moreover, he addted that “stablecoins are particularly well-positioned to bring respite to illiquidity issues, and we look forward to acquiescing our customers and prospects to the use of stablecoins in the imminent future.”

The XREX Group team claims to be the only digital asset player approved by both Singaporean and Taiwanese regulators to provide virtual asset services, according to the note.

Chye said that the compliance team has been studying the licensing regime formalised in the United Arab Emirates (UAE) and closely following regulatory developments in Hong Kong.

“Singapore boasts a progressive and robust regulatory framework, offering our users the clarity and confidence they need to access digital assets and use stablecoins,” said XREX Group and XREX Singapore head of compliance, Nick Chang, in the statement.

Chye added: “We feel optimistic about the regulatory developments across various jurisdictions and the attention central banks have afforded to this. Clear, reasonable, and practical regulations are crucial for the development of the blockchain industry.”

¬ Haymarket Media Limited. All rights reserved.

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Two blockchain firms to be added to MAS’s licensing list | FinanceAsia

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In: Asia, Finance, South-East Asia

Two crypto firms have recently announced that they have obtained in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) to provide digital asset-related offerings compliant with the watchdog’s requirements.

Through the licensing scheme under the city state’s Payment Services Act, MAS regulates seven types of payment services, including account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, e-money issuance, digital payment tokens and money-changing.

Singapore-headquartered StraitsX acquired its licence as a major payment institution (MPI) for digital payment token services, while Taiwan-based XREX’s Singapore entity received approval covering six service categories except for money-changing services.

Upon receiving the licence, StraitsX will focus on issuing two single-currency pegged stablecoins (SCS) that are 1-1 pegged to Singapore dollars (XSGD) and US dollars (XUSD), respectively.

XSGD is currently available for minting and redemption via StraitsX’s platform, while XUSD is under development and will be released to the public in the near future, FinanceAsia has learned..

“The in-principle approval from  the MAS allows us to demonstrate compliance with the regulatory framework for stablecoin issuance,” Kenny Chan, head of StraitsX, said.

“We see potential in single-currency pegged stablecoins as a credible and reliable medium to facilitate innovations in payment transactions both domestically and across borders,” he added.

Citing the purpose bound money (PBM) testing led by MAS as an example, Chan emphasised the programmability and interoperability of stablecoin-powered payment solutions and explored use cases, including programmable rewards and escrow arrangements for online commerce.

“Stablecoins play a significant role in the digital asset ecosystem as they frequently form the bridge to the fiat leg of a transaction,” said Etelka Bogardi, Asia head of fintech and financial services regulatory, partner at Norton Rose Fulbright.

“It was therefore important to safeguard financial stability and consumer protection in this space.”

She added that as one of the frontrunners in stablecoin regulation, Singapore’s licencing regime has introduced important safeguards through reserve management and redemption mechanics requirements.

The MAS is also expected to introduce a regulatory framework under the Payment Services Act, which will be dedicated to stablecoin-related issuance and intermediation activities. The framework is set to be finalised in Augustafter a public consultation which started in October 2022.

“We believe that the regulatory clarity provided in the finalised framework, as well as Singapore’s position as a trusted hub for global business will provide a strong foundation for the issuance of stablecoins pegged to other G10 currencies,” Chan remarked.

Blockchain benefit

XREX’s business focusses on blockchain-based cross-border payment technology. The Taiwan-based team will useXREX Singapore as their Asia Pacific (Apac) headquarters, and look to expand its payment product that supports fiats, stablecoins and cryptocurrencies in the region.

Christopher Chye, chief executive officer (CEO) at XREX Singapore, told FA that the approval process took approximately two years’ , which he referred to as “hard fought” in a company press release. The team is looking to elevate the in-principle approval to a full licence over the next six months, he added.

“Blockchain technology has the potential to decimate transaction fees, facilitate atomic settlement and enable programmable money,” he said.

Moreover, he addted that “stablecoins are particularly well-positioned to bring respite to illiquidity issues, and we look forward to acquiescing our customers and prospects to the use of stablecoins in the imminent future.”

The XREX Group team claims to be the only digital asset player approved by both Singaporean and Taiwanese regulators to provide virtual asset services, according to the note.

Chye said that the compliance team has been studying the licensing regime formalised in the United Arab Emirates (UAE) and closely following regulatory developments in Hong Kong.

“Singapore boasts a progressive and robust regulatory framework, offering our users the clarity and confidence they need to access digital assets and use stablecoins,” said XREX Group and XREX Singapore head of compliance, Nick Chang, in the statement.

Chye added: “We feel optimistic about the regulatory developments across various jurisdictions and the attention central banks have afforded to this. Clear, reasonable, and practical regulations are crucial for the development of the blockchain industry.”

¬ Haymarket Media Limited. All rights reserved.

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Catch Taylor Swift in Singapore in style with VIP tickets, Marina Bay Sands stays – with prices starting from S,000

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Taylor Swift fans who want to live it up while attending her concert in Singapore next March – and who also have at least S$10,000 to spare for the experience – can check out these soon to be released packages from Marina Bay Sands.

The three packages on offer include VIP tickets, stays at the hotel and Resort Dollars to spend.

The packages – named after Swift’s songs – go on sale on Thursday (Nov 23) at 10am and will be sold while supplies last.

There are six stay periods from Mar 1 to Mar 11 to choose from, with guests then attending the concert on the second night of their stay. Note that all prices listed are excluding service charge and GST.

The ‘Stay Stay Stay’ package starts from S$10,000. Here’s what you get for the price:

  • Two VIP 2 (Karma Is My Boyfriend) packages, which includes tickets and merchandise
  • Three-night stay in newly renovated Sands Premier Garden View Room
  • Omakase dining experience for two at Koma Singapore worth S$1,000
  • S$1,200 Resort Dollars to shop and dine within The Shoppes at Marina Bay Sand
  • Access to all attractions across the property, such as the ArtScience Museum

The ‘Shake It Off’ Package starts from S$15,000, and comes with the following:

  • Two VIP 1 (It’s Been A Long Time Coming) packages, which includes tickets and merchandise
  • Three-night stay in Sands Premier Garden View Suite
  • Omakase dining experience for two at Wakuda Restaurant & Bar worth S$1,000
  • S$1,200 Resort Dollars to shop and dine within The Shoppes at Marina Bay Sand
  • Access to all attractions across the property, such as the ArtScience Museum
  • Complimentary round-trip limousine transfers

Finally, the aptly named ‘Wildest Dreams’ package will set you back S$50,000. For that, you get:

  • Four VIP 1 (It’s Been A Long Time Coming) packages, which includes tickets and merchandise
  • Three-night stay in the two-bedroom Paiza Signature Sea View Suite that comes with a bar stocked with cocktails, wines and spirits
  • Curated dining experience by celebrity chef Wolfgang Puck at Spago Dining Room worth S$2,000
  • S$2,400 Resort Dollars to shop and dine within The Shoppes at Marina Bay Sand
  • Access to all attractions across the property, such as the ArtScience Museum
  • Complimentary round-trip limousine transfers

The Grammy Award-winning singer is performing six shows in Singapore at the National Stadium on Mar 2, 3, 4, 7, 8 and 9 as part of the Eras Tour – her only stop in Southeast Asia. Fans queued physically and virtually for hours to get their hands on the coveted tickets.

Swift is currently performing in Brazil where she faced issues with high temperatures and the tragedy of a fan dying at one of her Rio de Janeiro shows. Her next international stop is in Tokyo in February next year. 

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Chinese official warns money laundering, online scams outpacing capacity for containment

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Various financial crimes, including telecoms scams, online gambling and underground banks, are becoming more tightly intertwined with money laundering and pose new challenges for the country, Wang said. “The amounts involved in the cases continue to rise, and financial risks are gradually increasing,” he noted. However, Chinese financial institutions generallyContinue Reading