[NUSA DUA, BALI] IN MANY countries, the Covid-19 pandemic has accelerated digitalisation, which is a driver of future growth and of the achievement of the world’s sustainable development goals, said Singapore’s Prime Minister Lee Hsien Loong on Wednesday (Nov 16).

Speaking at a session on digital transformation on the second and final day of the G20 Summit in Bali, he told world leaders that there are many opportunities for “win-win international cooperation” in this field.

He spoke of the need to improve the interoperability of cross-border rules, standards, data frameworks and policies to make it easier to do business.

Singapore has entered into new digital economy agreements with Australia, South Korea and the United Kingdom, and PM Lee is hopeful of expanding this network over time.

Singapore is also working with Indonesia – the chair of Asean in 2023 – to advance the Asean Digital Economy Framework Agreement to deepen digital integration and connectivity in South-east Asia.

In his remarks, PM Lee also suggested that countries use digital innovations to boost trade, enhance financial inclusion and improve service delivery.

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“With Bank Indonesia’s leadership and partnership of the BIS (Bank for International Settlements) Innovation Hub, the Asean-5 will press ahead to link our real-time payment systems to boost cross-border payments and trade,” said PM Lee. Asean-5 refers to Indonesia, Malaysia, the Philippines, Singapore and Thailand.

Such multilateral payments connectivity could be scaled up to other jurisdictions or regions as well, he said.

“We look forward to learning from others who have also promoted the development of foundational digital infrastructure globally, such as the India Stack, to improve public service delivery to those who are most in need,” said the prime minister.

For its part, Singapore will start a trial using a purpose-bound digital Singapore dollar that can, among other things, help the government disburse and track the utilisation of fiscal transfers.

PM Lee also said that countries should develop consistent international regulation for digital assets, as these have significant economic potential.

“They improve efficiency and liquidity by enabling high-value assets to be traded, cleared and settled instantaneously among participants directly. Such technologies can transform cross-border trade and settlement as well as capital market activities,” he said.

“However, as digital innovations proliferate and become more interconnected with financial markets, they can potentially create risks to financial stability.”

He called on the G20 nations to work with relevant standard-setting bodies to develop international regulations to address these risks, in line with the principle of “same activity, same risk, same regulation”.

On the sidelines of the summit on Wednesday, PM Lee met separately with the leaders of France, India and South Africa.

PM Lee wrote on his Facebook page that he was glad to reconnect with French President Emmanuel Macron, and they exchanged views on developments in Europe and Asia, and ways to deepen the bilateral relationship. This year also marks the 10th anniversary of the Strategic Partnership between the two countries, and PM Lee added that he looked forward to hosting Macron in Singapore soon.

After the meeting with Indian Prime Minister Narendra Modi, PM Lee said he reaffirmed Singapore’s commitment to expand cooperation in new areas such as digitalisation and energy security, which were identified at the recent India-Singapore Ministerial Roundtable. India is the next chair of the G20 in 2023, and Singapore has already been invited to take part.

This was the first time since 2018 that PM Lee had met South African Cyril Ramaphosa, and he described it as a good opportunity to touch base and discuss developments in their respective regions as well as around the world.

South Africa is one of Singapore’s largest trading partners in Sub-Saharan Africa, and PM Lee said the bilateral relationship has continued to grow, even during the pandemic. Singapore and South Africa will mark 30 years of diplomatic relations in 2023.