The Commodities Intelligence Centre (CIC) has introduced Singapore’s first physical commodity business-to-business (B2B) e-trading platform in collaboration with key partners: Zall Smartcomm, a prominent B2B player in China; Global eTrade Services (GeTS) Asia, a subsidiary of CrimsonLogic; and Singapore Exchange (SGX). Enterprise Singapore played a crucial role in bringing these partners together.
CIC offers a comprehensive global trading platform powered by Blockchain technology. This platform provides commodity traders worldwide with a range of services, including transaction matching, simplified customs clearance, supply chain financing, flexible payment options, and enhanced resource pooling for both buyers and sellers.
CIC facilitates the trade of various products such as oil and petroleum, chemicals and plastics, and ferrous and non-ferrous metals. Following a successful trial period in July, the CIC platform has recorded nearly US$200 million in trade volume across markets including China, Australia, India, and Malaysia. Notable transactions include a silk-related trade from China to India and the import of polyvinylpyrrolidones (PVP) materials from the UAE into China.
The Blockchain-powered CIC platform strengthens security for trade-related documents such as Certificates of Origin and commercial invoices. This heightened security measure fosters transparency and trust among shippers, freight-forwarders, and users, providing a competitive advantage to businesses trading on the platform.
Source: CIC. Yu.
Peter Yu, CEO of CIC, highlighted that the e-trading platform fosters greater trading synergy within and beyond ASEAN, connecting China and the rest of the world. He stated that Singapore, with its strategic location and the opportunity to partner with industry leaders like Zall Smartcom, GeTS, and SGX, presented the ideal foundation for launching this platform.
Satvinder Singh, Assistant CEO of Enterprise Singapore, emphasized the significance of commodity trading as a growth pillar for Singapore’s economy. He noted that the sector generated US$1.2 trillion in turnover in 2017, driven by a sustained global economy and robust demand from Asia. Singh believes that the presence of digital B2B platforms like CIC in Singapore, coupled with the nation’s exceptional connectivity, supply chain, and financing ecosystem, will further solidify Singapore’s position as a global trading hub.
Eugene Wong, Chairman of CrimsonLogic and GeTS, expressed that CIC is poised to be a transformative platform for Singapore’s commodity trading community. He explained that GeTS, as a shareholder and technology partner of CIC, utilizes its CALISTA platform to streamline key physical and non-physical logistics activities, including regulatory and financial aspects, within a digital ecosystem. This streamlined approach makes commodity trading simpler, more accessible, and predictable.
Wong further added that CIC has the potential to revolutionize commodity trading by attracting a larger global network of buyers and sellers, ultimately contributing to lower and more stable commodity prices.
CIC has also established a memorandum of understanding (MoU) with Marubeni, a leading Japanese integrated trading and investment conglomerate. The agreement aims to unlock commodity trade opportunities for supply chain finance.
Source: CIC. Supported by Zall, GeTS and SGX in Singapore, the MOU signing was witnessed by Iwasa San, MD, Marubeni ASEAN, and Sharon Chou, CFO, CIC at the official launch of the CIC platform.
Marubeni’s decision to collaborate with Zall Smartcom stems from the company’s strategic objective to provide comprehensive trade financing solutions to international small and medium-sized enterprises (SMEs) through diversified finance channels. The MoU will see Marubeni integrating CIC to offer a broader range of payment term options, facilitating smoother and more efficient transactions between global buyers and sellers. The CIC platform will also enable the company to streamline global trade by connecting commodity buyers and sellers while offering supply chain financing, expedited clearance processes, and integrated logistics services.