If you build it, they will come
The building of a broad-based renminbi financial sector can turn Singapore into an enabler and a beneficiary of the renminbi's rise in international trade.
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DESPITE current market volatility, China's outward trade and investment ambitions will be a defining commercial opportunity for Asean over the coming decades. The ability of Singaporean financial markets, institutional and retail investors and corporates to further embrace the renminbi, in addition to a deepening of the local liquidity pool and the range of products available, will determine if this opportunity is grasped.
Singapore has been a global leader in adopting the necessary financial market infrastructure to enable cross-border flows of the renminbi; this proactiveness and foresight in positioning itself as a leading global renminbi centre has delivered much widespread admiration.
A case in point is that renminbi-denominated deposits in Singapore totalled 257 billion yuan (S$57.2 billion) at the end of March 2015, accounting for about 15 per cent of deposits among Asian financial centres. In addition, Singapore is the top economy outside China and Hong Kong to be using the renminbi for trade financing purposes.
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