Platform set to be a revolutionary model for global trade hubs
Kuala Lumpur, 12 October, 2016 – In conjunction with the third anniversary of the Shanghai Free Trade Zone (SFTZ), COMMIN, ValuePay, Mastercard and CIMB Bank today announced the launch of the Cross-Border Commodities Financial Services Platform in SFTZ. The announcement was made at the signing of a Memorandum of Understanding (MoU) in Shanghai today between all parties, and is an exclusive first for Mastercard.
The Cross-Border Commodities Financial Services Platform is a revolutionary payments eco-system and is a significant step towards building an integrated, fully digital platform for all trade and services in the SFTZ.
Some of the key benefits of the platform include:
- Greater transparency and accountability – With a fully digital platform from payments to documentation, the Cross-Border Commodities Financial Services Platform is designed to bring greater transparency and accountability to the trade process. It provides authorities and stakeholders with deep and detailed visibility of the full trade cycle, including the payment of duties and subsequent transactions
- Enhanced efficiencies and savings – The platform is designed to bring about significant savings in terms of time and cost to all parties involved in the eco-system. In contrast with the existing system which involves heavy administration and is very labor-intensive, the new platform will enable an efficient and convenient trading environment for all parties
- Deeper connectivity and security – The platform will also bring about deeper connectivity and a higher security for the various parties and stakeholders in the SFTZ. This in turn will enhance collaboration and coordination within the SFTZ, connecting banks, regulatory bodies, bonded warehouses, merchants and businesses through one platform
The platform will also serve as a means to authenticate the credibility of merchants and traders, opening up opportunities for more banks around the world to be a part of SFTZ’s trade financing and encouraging an increased volume of cross-border transactions.
CIMB Group sees the platform bringing great benefits to Malaysian traders utilizing the SFTZ.
Thomas Tan, Senior Managing Director, Global Wholesale Banking, CIMB Group said, "CIMB, in collaboration with Mastercard, is pleased to be a key enabler in facilitating Malaysian traders’ cross-border B2B digital trade payments and settlements with the Shanghai Free Trade Zone (SFTZ) under its new integrated online platform. Malaysian traders will benefit from a seamless transactional flow with SFTZ, in the form of greater efficiency, cost-effectiveness, transparency and control to enhance cash flow management. Riding on CIMB’s Corporate Card Solutions, the B2B digital trade payments and settlements solution leverages on cutting-edge technology of virtual card number (VCN) capability, which is a key highlight of CIMB's Cash Management’s suite of digital products. With the B2B digital solution's numerous benefits, we certainly look forward to extending it to the rest of our counterparties in ASEAN.”
Perry Ong, Country Manager, Malaysia and Brunei, Mastercard, said, “This initiative which will be powered by Mastercard’s network and technology, solidifies our efforts towards enabling commerce activities to be more efficient, safe and transparent for all. Together with our partner bank, CIMB, with whom we share a strong commitment to the Malaysian market, we are excited about the many possibilities to support merchants and businesses, who can benefit from access and connectivity to the Cross-Border Commodities Financial Services Platform. Through the implementation of best-in-class digital technologies and platforms, we are not only facilitating merchants and businesses in enabling them to scale and make their mark regionally but also looking to contribute towards developing Malaysia’s digital economy, which is integral to the country’s economic growth. The concerted effort also represents the larger potential to strengthen trade ties between Malaysia and China, enhancing business prospects between these two countries.”
