The Philippines and Singapore are further boosting their collaboration to link the payment systems of the two trading partners, according to the Bangko Sentral ng Pilipinas.

BSP Governor Eli Remolona Jr. received Singapore Ambassador Constance See Sin Yuan during her recent courtesy call at the BSP head office in Manila.

Both Remolona and Yuan expressed their commitment to bolster ties between the BSP and the Monetary Authority of Singapore.

'They also discussed the vision of further linking the payment systems of the two countries,' the BSP said.

In November 2021, the BSP and MAS signed an enhanced FinTech Cooperation Agreement to facilitate interoperable payments between the Philippines and Singapore. The enhanced pact builds on the earlier 2017 agreement to broaden the scope of fintech collaboration and partnership between BSP and MAS.

The agreement is aligned with the G20's efforts to address existing frictions in global cross-border payments and contributes to the Association of Southeast Asian Nations' goal of establishing regional payments integration by 2025.

ASEAN is further ramping up cross-border payments to include Vietnam, bringing to six the number of central banks joining the regional payment connectivity initiative.

On the sidelines of the recently concluded 10th ASEAN Finance Ministers' and Central Bank Governors' Meeting in Indonesia, the State Bank of Vietnam officially joined the regional payment connectivity initiative.

Aside from the BSP and MAS, existing participants including the Bank Indonesia, Bank Negara Malaysia, the Monetary Authority of Singapore and Bank of Thailand witnessed the signing of the supplemental pages of the memorandum of understanding (MOU) on cooperation in regional payment connectivity by SBV.

The five central banks signed the MOU on regional payment connectivity at the sidelines of the G20 Leaders' Summit last November 2022 in Bali. The initiative was established to strengthen and enhance collaboration on payment connectivity through the development for faster, cheaper, more transparent, and more inclusive cross-border payments.

The goal of the regional payment connectivity is to make inter-country payments more seamless, convenient, and affordable, allowing individuals and businesses to conduct transactions across the ASEAN region with ease.

This partnership aims to further support post-pandemic economic activities across the ASEAN region, including the promotion of tourism and other service industries.

Through cross-border payments, ASEAN member states will be able to increase trade and remittances within the region, helping widen financial inclusion and significantly contribute to the overall advancement of the ASEAN economic community.

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