It was reported in the Straits Times today that Singapore and India have signed an agreement that enables fintech companies from both countries to market-test innovative financial products in both markets (‘Singapore, India sign agreement for fintech firms to market-test products’, 19 Sep 2022).
It is said that both countries will now operate a joint regulatory sandbox, with yesterday’s (18 Sep) signing of the FinTech Cooperation Agreement between the Monetary Authority of Singapore (MAS) and the International Financial Services Centres Authority (IFSCA) of India.
A regulatory sandbox allows companies to test their financial products and services with actual customers without the need for any full licensing.
The signing was witnessed by Singapore newly appointed Deputy Prime Minister Lawrence Wong who is slated to become Singapore’s next Prime Minister.
DPM Wong was optimistic that the newly signed agreement will help create new jobs.
He said, “I hope this will spur innovation, create new jobs and investments, and further strengthen the development of the fintech industry in both Gujarat and Singapore.”
The agreement was signed in the Indian state of Gujarat yesterday. Gujarat is the home state of Indian PM Narendra Modi and Singapore is the state’s second largest investor.
Said DPM Wong in his Facebook posting after the signing ceremony, “Singapore and Gujarat enjoy a close and broad-based relationship. Singapore is the second largest investor in Gujarat. Meanwhile, Gujarat accounts for nearly 30% of India’s exports to Singapore.”
“This is why I was very happy to meet Gujarat Chief Minister, Bhupendra Patel,” he added. “I look forward to deepening our relationship with Gujarat and India for many years to come.”
According to MAS, Mr Sopnendu Mohanty who is its Chief FinTech Officer, signed the agreement on behalf of Singapore. Mr Mohanty was appointed by MAS as its Chief FinTech Officer in 2015.
In 2019, news came from India that Mr Mohanty was also being appointed as a state government advisor to India’s Odisha state, while still serving in the Singapore government statutory board MAS. Mr Mohanty’s new appointment in India generated considerable controversies in Singapore. Many netizens felt that there was a potential conflict of interests serving the 2 governments at the same time.
According to the Indian news, Mr Mohanty would enjoy the equivalent of the “rank and status of a minister of state” and will have a key role in preparation of annual budgets while working in coordination to the chief minister’s office of Odisha.
MAS responded that the appointment was done in Mr Mohanty’s personal capacity and it would not draw any compensation. MAS further stressed that his appointment in India does not conflict with his role as the Chief Fintech Officer in MAS. MAS said it could potentially provide opportunities for fintech firms with greater awareness of opportunities in the region.
Incidentally, Mr Mohanty was born in the Odisha state in India. He obtained his Bachelor of Science degree from Utkal University in Odisha and Master’s Degree in Information Science from Birla Institute of Technology in Jharkhand.
While DPM Wong is “hopeful” that new jobs would be created out from the newly signed agreement between Singapore and India, it’s not known how many of the newly created jobs in Singapore will go to Singaporeans.
Under the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) signed in 2015, each country can grant entry to any intra-corporate transferee that meets the immigration visa criteria for a period of up to a total of 8 years.
Also, in cases where they are allowed to bring in their spouses or dependants, their spouses or dependants also have “the right to work as managers, executives or specialists” in the country.
“Such spouses or dependants can apply independently in their own capacity (and not necessarily as accompanying spouses or dependants) and shall not be barred by the Party granting them the right to work from taking up employment in a category other than that of managers, executives, or specialists solely on the ground that they as the accompanying spouses or dependants are already employed in its territory as managers, executives or specialists.”
In any case, thanks to the constant questioning by opposition parties in Singapore, it is now known that 25% of all the Employment Pass (EP) holders in Singapore come from India (‘1/4 of Singapore’s 177,100 employment pass holders from India: Tan See Leng‘, 6 Jul 2021).
Manpower Minister Tan See Leng was forced by questions from Non-Constituency MPs Leong Mun Wai and Hazel Poa to reveal that the proportion of EP holders from India increased from about one seventh in 2005 to about a quarter in 2020.
In other words, the share of EP holders from India has nearly doubled in the 15 years from 2005 to 2020. EP holders presently have to earn a minimum of $5,000 in salary a month.
However, Minister Tan did not want to give any specific numbers.
According to the MOM website, there were some 177,100 EP holders in Singapore as of December 2020. This does not account for S pass or work permit holders, as well as holders of other work passes.
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