The Central Bank of Myanmar (CBM) and the Monetary Authority of Singapore (MAS) announced that they will enter into a memorandum of understanding (MoU) to strengthen bilateral cooperation.
The MOU was agreed during a meeting between Emeritus Senior Minister Goh Chok Tong and CBM Governor U Kyaw Kyaw Maung in Nay Pyi Taw.
Under the proposed deal, MAS and CBM will cooperate on banking supervision and capacity building.
Goh, who is also senior advisor to MAS, said, “As an emerging ASEAN economy, Myanmar is well placed to tap on Singapore's global financial linkages and expertise to develop its financial markets.
MAS said the MoU reflects “longstanding bilateral relations that have deepened in recent years.”
This also comes as CBM has embarked on a banking liberalisation programme in 2014, where it awarded nine foreign bank licences to allow foreign banks to offer wholesale banking services to foreign corporates, and financial and technical support to Myanmar’s domestic banks.
In October 2014, two Singaporean banks – Oversea-Chinese Banking Corp Ltd and United Overseas Bank – obtained preliminary licences from CBM to open one branch each in Myanmar.
“In tandem with Singapore banks preparing to operate in Myanmar, the MoU underscores Singapore’s close ties with Myanmar and our readiness to deepen cooperation with Myanmar. This adds to the extensive bilateral cooperation from economic and legal to technical cooperation,” Goh said.