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SBMA at the Bund Summit 2021: Promoting Global Gold Market Cooperation in the Post-Pandemic Era

By SBMA

Published on December 10, 2021

SBMA CEO Albert Cheng was among the speakers at the 3rd Bund Finance Summit, held in Shanghai on 22-24 October 2021. The conference focused on the development of the global gold market against the backdrop of the pandemic. Here, we present an abridged version of his speech.

The global gold market is at a crossroads: a paradigm shift is inevitable. Singapore an important global bullion trading hub. Physical gold movement in and out of the country reached new highs in 2020. And in the last few years, we have observed an increasing number of big bullion banks, commodity trading houses, foreign fund managers, and financial institutions establishing a presence in Singapore.

The focus and mandate of SBMA in recent years has expanded considerably, and we are now widely acknowledged and recognised as a “super connector” both within and beyond the region. With our growing reputation and profile, we are observing healthy interest among prospective members, especially over the last 18 months, when some may have expected this to slow because of the pandemic. Eleven new members have been added during this period and there is a pipeline of applications in progress.

Beyond serving our members, we are also privileged to be recognised as the voice of the bullion industry by regulators and market development bodies. SBMA was also the industry body that Singapore’s Ministry of Law engaged with on the introduction and subsequent ongoing monitoring and reporting requirements for the “Precious Metals Dealers Prevention of Money Laundering and Terrorism Financing Act”.

All in all, our refocused efforts in the past 6 years speaks of our role in ASEAN, to the collective effort to promote the cooperation of the global gold market in the post-pandemic era. In charting our next course of action for market development, our members have a few wishes that require collective action.

First, the gold market is calling out for a global solution in the form of supply chain integrity, standardised delivery form(s), fungibility, regional reference pricing, clearing, settlement and the need for multiple global vaults other than London for metal can be delivered and securely stored closer to the customers.

The acute situation that we experienced in the first quarter of 2020, which happened at COMEX due to the supply chain crunch because of widespread lockdowns, unavailability of transportation or lack of refining capacity in the right country. Market players found physical gold was neither in the right place or right form to meet demand, despite the abundance of metal in London vaults.

In resolving this situation, Asia played a global role and we saw refineries in Singapore, Hong Kong and Australia providing a large share of production of kilobars to banks and traders for shipment to the United States. This would not have happened in a perfect model.

We believe that a more co-ordinated approach with more collaborative parties is a possible solution. Hence, we support the Gold 24/7 Plan proposed by the World Gold Council and LBMA’s Responsible Sourcing guidelines.

Second, the industry requires a digital gold standard. Digitalisation of the industry is something that is going to happen, and it will help change the way in which we view gold as an asset (and no doubt, other precious metals, or commodities as well). This will help determine how, where, and when it is settled, how it can be used as collateral (greatly improving efficiency e.g., instant title transfer, DVP, etc. Such a standard will benefit both institutional and retail investors.

Third, is attracting newcomers to the profession and to continue educating investors. Getting the right people to the industry is critical as we see the ageing of the current batch of professionals in our industry. However, as good people continue to be attracted to other sectors of the financial markets, fewer juniors are entering our profession. At the same time, gold investment faces competition from many competitive investible products, so a good case for gold and its continued update is critical, and I am pleased that the World Gold Council has been beefing up its efforts towards this initiative.

The future is bright if all global stakeholders are united in achieving our common goals of ensuring transparency, trust, and accessibility, with agreed uniform standards in the global gold market. – Albert Cheng, CEO, SBMA

Conference Highlights

By Shanghai Gold Exchange

SGE president Wang Zhenying pointed out that gold plays an important role as an international circulating asset in the post-epidemic era. At present, the gold market urgently needs to establish unified standards and a plan. In the future, the gold market must strengthen cooperation in terms of access standards, trading rules and quality standards. Efforts will be made to expand the convergence of interests of all sectors of the gold market and form a new pattern of cooperation in which development and innovation are mutually reinforcing, thus providing new impetus for the development of the market.

David Tait, CEO of the World Gold Council, said that it is promoting the transformation of the gold market to semi-liquidation mode, improve market transparency and trust. It is also actively promoting retail gold investment principles, guidelines and a responsible gold mining industry framework based on digital technology to create a sustainable future for the industry.

In her speech, Ruth Crowell, Chief Executive of the London Bullion Market Association (LBMA), said the Association is committed to promoting the establishment of unified global gold market standards, including delivery standards and standards for responsible gold procurement. It is hoped that by eliminating gold money laundering, enhancing transparency, and building mutual trust in gold, the global gold market will be supported and guaranteed.

Igor Maric, managing director of sales and business development at the Moscow Exchange, said in his speech that the Chinese gold market is a very important partner for Russian exchanges. It is hoped that the two sides will continue to launch new products and services to better meet the needs of investors in the global gold market and strengthen the integration with the international market.

In his presentation, SBMA CEO Albert Cheng pointed out that the gold market needs a global integrated development programme in the form of standardised delivery forms, regional reference pricing, clearing and settlement. Gradually a global digital gold standard will attract more new investors to enter the gold market.

Xu Xiaolan, general manager of the precious metals business department of Industrial and Commercial Bank of China (ICBC), pointed out that China, as an important engine of the global gold market, plays an important role in the post-epidemic era. ICBC is committed to creating a symbiotic, open and win-win market development environment, will strive to explore and provide professional integrated precious metal services for global customers, and work with market participants to open up a new process of high-quality development of the gold market, she said.

In his speech, Lai Changgeng, CEO and President of BNP Paribas (China), said that against the background of the new development pattern and the internationalisation of the RMB, BNF Paribas attaches great importance to the coordinated development of the international gold market, actively helping international investors to enter the fast-growing Chinese gold market and has made great progress.

Gu Wenshuo, Shanghai Gold Exchange (SGE) vice president, discussed the plans and measures taken by SGE in the post-epidemic era to promote the exchange and integration of international and domestic gold markets, how to better integrate and support the development of the gold market, the application and prospects of innovative technology in the gold market, and what opportunities and challenges the gold market will face in the future. He said China’s gold market will build a consensus on development, adhere to openness and cooperation, work hand in hand with everyone to meet all kinds of challenges, actively provide more development opportunities for global participants, and “jointly build a win-win gold market community”.

Wang Zhenying, president of SGE
David Tait, CEO of the World Gold Council
Ruth Crowell, CEO of LBMA
Igor Marich, managing director of sales and business development of MOEX
Albert Cheng, CEO of SBMA
Xu Xiaolan, general manager of precious metals business department of ICBC
Lai Changgeng, CEO and president of BNP Paribas (China)
Gu Wenshuo, vice president of Shanghai Gold Exchange (SGE)
Speakers at the 3rd Bund Finance Summit
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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

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Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.