Singapore eager for more renminbi business

First MAS representative office in Beijing good for commercial banks.

The opening last week of the Monetary Authority of Singapore's first representative office in Asia in Beijing is being seen by the financial industry as a sign of Singapore's readiness to play a bigger role in the renminbi’s internationalization.

It is also seen by both countries as a milestone in further strengthening bilateral financial cooperation. Singapore believes financial cooperation has become an increasingly important pillar in the relationship between China and Singapore.

The People's Bank of China said the expanded footprint of the MAS will not only bring better communication between the two central banks, but should also promote the business of commercial banks from both countries.

China was Singapore's third-largest merchandise trading partner last year. In services, China was Singapore's fifth-largest export destination, and Singapore was China's 13th-largest trading partner in that same year.

Singapore was also the third-largest source of foreign direct investment into China last year, after Hong Kong and Japan.