SINGAPORE: Singapore desires to enhance requirements in its commodities buying and selling business after scandals rocked banks’ confidence in lending to the sector, its commerce minister mentioned on Monday.
A number of monetary scandals within the business, together with allegations of fraud and suspect offers, have surfaced this 12 months after the stoop in oil costs sparked by the coronavirus disaster.
Many have concerned Singapore – the world’s greatest ship refuelling station and Southeast Asia’s petroleum refining hub – together with Hin Leong, as soon as certainly one of Asia’s largest gasoline merchants.
“We wish to uplift requirements for the commodities buying and selling business to extend banking confidence within the business,” commerce minister Chan Chun Sing mentioned at a Monetary Occasions occasion in Singapore.
With out naming corporations, Chan mentioned there had been “remoted circumstances of mismanagement and defaults” that had decreased banks’ willingness to offer financing to commodity-trading corporations.
He mentioned the city-state was partnering with the business to develop a brand new code of apply for commodity financing, set to be finalised this quarter, and was additionally engaged on a digital commerce finance registry.
Commodities buying and selling is a key part of Singapore’s wholesale commerce sector, which contributed 17% of town state’s gross home product in 2019, he added.
Individually, Singapore has additionally launched into a research to develop carbon buying and selling and different carbon providers, which will likely be accomplished within the first quarter subsequent 12 months, Chan mentioned.
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