Similar to the digitalization advancements in commerce and supporting financial operations that we have frequently been pointing out in this channel, the broader topic of trade between companies, cross-border or domestic, is also undergoing transformation. In this yahoo finance piece, we can see once again that Singapore continues to innovate and be at the forefront in the intersection of commercial/societal uses of various technologies.
Singapore is a nation-state with about 5.8 million residents, a highly educated citizenry and a friendly business environment, making it not only a financial hub but a center of technology innovation in Southeast Asia. Those who wish to access the posting will see that the Singaporean government will be investing in furthering the use of data to support trade and supply chain efficiency.
“Speaking at the opening address of the ATxSummit, the apex event of Asia Tech x Singapore (ATxSG) organised by the Infocomm Media Development Authority (IMDA) and Informa Tech and supported by the Singapore Tourism Board (STB), Singapore Deputy Prime Minister and Coordinating Minister for Economic Policies, Mr Heng Swee Keat, today announced that Singapore will be stepping up investments to unlock the full potential of the digital revolution through collective action.
“The pandemic has accelerated the overall shift to digital. Building a common ‘digital infrastructure’ to underpin and ease data sharing will enable multiple stakeholders to come together and drive economic transformation. A new common data infrastructure and framework, the Singapore Trade Data Exchange, or SGTraDex was therefore launched to enable this trusted sharing of trade data. Designed as a neutral and open digital infrastructure through a public-private partnership, it was conceptualised by the Alliance for Action (AfA) on Supply Chain Digitalisation. SGTraDex will support ecosystem- wide digital transformation, connecting supply chain ecosystems both locally and globally….Three initial use cases were developed to push the boundaries of a trusted data exchange. The use cases demonstrated how SGTraDex can enable participants to strengthen the financing integrity of trade flows, enhance operational efficiency by optimising logistics functions across partners, and provide visibility on supply chain transactions. The use cases have the potential to unlock more than S$200 million (US$150 million) of value annually when fully developed..SGTraDex will continue to build on this initial momentum, develop more use cases, and drive adoption locally and globally…. SGTraDex also has the flexibility to be the data infrastructure for many other sectors ranging from construction to aviation, unlocking even more potential value. This is part of a suite of digital infrastructure and utilities being developed, including the SGFinDex for the financial sector, that provides a strong foundation for Singapore’s Digital Economy.“
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group