Photo (IDG) - An early device for traders (Abacus)
Malaysia's CIMB Bank together with MasterCard as well as COMMIN and ValuePay have announced the launch of a cross-border commodities financial services platform in Shanghai Free Trade Zone (SFTZ).
The announcement was made at the signing of a Memorandum of Understanding (MoU) in Shanghai between all parties, and is an exclusive first for MasterCard and coincides with SFTZ's third anniversary.
Thomas Tan, senior managing director, Global Wholesale Banking, CIMB Group, said the 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.
"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," said Tan.
"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," he said.
"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," Tan added.
Safer, more transparent
Commenting on the announcement, 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."
Photo - (from left) Thomas Tan, Senior Managing Director, Global Wholesale Banking, CIMB Group; Wendy Chen, Vice President, ValuePay; Wang Lei, General Manager, COMMIN and Dennis Chang, Division President, China, MasterCard, witnessed by officials from the Shanghai Free Trade Zone (SFTZ).
"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," he said.
"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," said Ong.
"The concerted effort also represents the larger potential to strengthen trade ties between Malaysia and China, enhancing business prospects between these two countries," he said.
The partners said some of the benefits from the new platform include:
- Greater transparency and accountability - With a fully digital platform from payments to documentation. This 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.
- 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 such as connecting banks, regulatory bodies, bonded warehouses, merchants and businesses through one platform.
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