THE central banks of the Philippines and Singapore recently signed an agreement on strengthening cross-border digital payments in the Association of the Southeast Asian Nations (Asean) region.

In a statement, digitalization advocacy group Digital Pilipinas said the Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) signed the expanded Fintech Innovation Function Cooperation Agreement during the recent World Fintech Festival Philippines 2021-Singapore Fintech Festival.

The accord was signed by BSP Governor Benjamin Diokno and MAS Managing Director Ravi Menon.

Among the salient features of the agreement is the linkage of the two countries’ QR and real-time payment systems, which are aimed at providing financial inclusivity to overseas Filipino workers (OFWs) and micro, small, and medium enterprises (MSMEs).

“The BSP is taking the initial step in linking the Philippine payment system with those of our ASEAN neighbors, beginning with Singapore,” Diokno said in a statement.

He said the agreement will enhance safe, efficient cross-border payments through smoother and seamless international fund transfers.

Amor Maclang, Digital Pilipinas convenor, lauded the BSP-MAS cooperation agreement as a “whole-of-society approach in solving today’s and tomorrow’s technological needs.”

The BSP-MAS extended cooperation accord is expected to trigger more collaborations across the Asean region. (with PR)