SINGAPORE: Luxembourg is looking to deepen cooperation with Singapore in the areas of “green finance”, alternative investment funds and emerging sectors like fintech, the country’s finance minister said.
Pierre Gramegna said that small, open financial centers like Singapore and Luxembourg have a role to play in promoting sustainable finance, as well as in spreading the message of free trade in the face of rising protectionist sentiment around the world.
Gramegna, who was on a one-day visit to Singapore, met Second Minister for Finance, Lawrence Wong, to sign a bilateral agreement allowing for the exchange of information in tax matters between the two countries.
This was the first such bilateral agreement for Luxembourg, which previously acted only multilaterally on these matters, Gramegna said. In addition, he met representatives from the Monetary Authority of Singapore as well as some major financial institutions.
There are opportunities for Singapore and Luxembourg to do more together in the financial sector, said Gramegna.
One key area of focus is green finance, which refers to financing investments that generate environmental benefits.
Last year, the Luxembourg Stock Exchange became the first exchange globally to introduce a platform for green financial instruments.
Called the Luxembourg Green Exchange, it is a platform for green bonds and other environmentally focused financial instruments.
He added that there is also significant scope for collaboration and investment in emerging sectors like fintech or financial technology.
For instance, insurance giant AIG has announced it will open a subsidiary in Luxembourg while keeping its main European headquarters in London.
Amid mounting global volatility and rising protectionist sentiment worldwide, Gramegna said Singapore and Luxembourg – “the two world champions of openness” – should continue to advocate free trade.
“We are proof that by being open you can be successful, contrary to what’s fashionable today. Protectionism… will end up stifling the economy,” he said.
