Over $13 billion worth of commodities traded on CIC, to grow winning products with RCEP
By Celine Chen
Commodities Intelligence Centre (CIC), a B2B e-trade platform for physical commodities, plans to groom one unique commodity from each member-country of the recently inked Regional Comprehensive Economic Partnership (RCEP) to be a global champion.
Powered by blockchain technology and bolstered by supporting services like financing and logistics, CIC is a global trading platform for physical commodities such as ferrous and non-ferrous metals, chemicals and plastics, oil and petroleum, and agri-commodities.
As it seeks to uncover new trading opportunities and promote global trade facilitation on the back of RCEP, CIC aims to develop more than 10 winning commodities that will be popular worldwide over the next three to five years.
Peter Yu, CEO of CIC, told NNA, "The Global Commodity Champion initiative aims to identify a unique commodity product from each RCEP member country, and to grow the trading of this commodity globally through CIC platform, which will boost trade across the Asia-Pacific region, with and beyond members of RCEP. "
So far this year, CIC has gained over 20 percent increase in new members joining the platform compared to the same period last year. The surge contributed to the pool of more than 4,000 customers searching for trading opportunities online.
It also helped CIC achieve a gross merchandise volume of US$13.2 billion (SG$17.7 billion) in transactions before the close of the year. The platform has over 5,200 registered users from Singapore, Malaysia, Indonesia, India, China and other countries in Asia.
In a media statement, Yu said, "The coronavirus has radically reshaped the global supply chain, exposing the fragility of the industry. We believe that CIC is well-placed to empower companies, especially SMEs, from RCEP member countries to uncover new market opportunities and identify reliable partners and suppliers, while building business resilience and extending the global reach of their supply chains during this difficult period."
He added, "The work that CIC has been doing for the past two years resonates strongly with the recently launched RCEP - to help participating countries establish a mutually beneficial economic partnership that will facilitate the expansion of regional trade and investment and contribute to global economic development and growth."
RCEP is the world's largest trade pact signed by 15 countries in the Asia Pacific. Apart from the 10 ASEAN members, which include Singapore, Indonesia, Malaysia, Thailand and Vietnam, the other key members are China, Japan, Australia, South Korea and New Zealand.
Following the next step of ratifying the agreement, RCEP countries aim to eliminate as much as 90 percent of import tariffs over the next 20 years, and open wider market access for goods and services within the region.
Ready and raring to serve RCEP members, CIC platform has been designed to support 10 languages used in their countries. It also provides integrated services to help SMEs (small and mid-size enterprises grow their business).
Apart from reducing transaction costs and optimizing the efficiency of supply chains in cross-border trading, CIC also provides financing and logistics.
Recently, CIC has facilitated huge renewable energy deals between customers from Australia, India and South Korea.
Singapore has been promoting digital trade and supporting open digital trade architecture. It is actively growing its network of digital economy agreements with like-minded countries.
Such treaties establish digital trade rules and digital economy collaborations between two or more economies to support Singapore businesses, especially SMEs, in engaging in digital trade and e-commerce. The agreements aim to build on the country’s extensive network of free-trade agreements and other digital cooperation initiatives.
Officially launched in Singapore in 2018, CIC is a joint venture between Zall Smart Commerce Group, a leading B2B platform in China, Global eTrade Services, a subsidiary of CrimsonLogic, and Singapore Exchange Ltd. The commodity platform is supported by Enterprise Singapore, a statutory board under Singapore's ministry of trade and industry.