As per the latest news, a Singapore trade data-sharing platform, supported by banks, commodity houses, and state organizations, has enrolled 70 participants as part of the city-state’s endeavors to support certainty after a series of commodity trade finance frauds in recent years.
The Singapore Trade Data Exchange (SGTraDex), which was established by bank DBS (DBSM.SI), commodity trader Trafigura and local technology controller, Infocomm Media Development Authority, was introduced on Wednesday, following the strategies put in place last year.
“We are attempting to replicate what’s taking place in the real world,” said Antoine Cadoux, chief executive of SGTraDex Services. “The agenda is to adopt paperless technology across the end-to-end process.”
“We suppose that with the value we are capable of demonstrating, we can touch that scale relatively faster,” according to Cadoux, a former consultant.
Singapore, one of the biggest commodity trading and financing houses and the largest bunkering hub on the global level, is focused on regulating mistakes after recent corporate frauds, such as the breakdown of one of Asia’s largest oil traders Hin Leong Trading Pte Ltd.
Wrapping up Hin Leong and other commodity traders left many banks burdened with millions of dollars in debt and compelled lenders to decrease exposure to commodity financing.
The participants of the platform include mainly bunker suppliers, cargo traders, oil terminals, traders, shipping carriers, the Singapore port operator, and others.
“We are willing to create flexibility and transparency in the supply chain. It will decrease the risks of fraud in the ecosystem.” Cadoux said.
The platform, which will primarily be used for streamlining bunkering, container logistics, and trade finance fraud detection, was supposed to touch over $100 million of value by 2026 for members from efficiency and cost savings, and sufficient use of assets, and quicker access to financing, SGTraDex explained.
The backers expect qualities such as adaptability on data sharing and its neutrality will bring in more members.
In bunkering, the platform enables storage facility operators, banks, and barge operators to go digital, focusing on enhancing transparency in an industry that involves many middlemen and depends on lengthy paperwork.
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