Singapore's financial watchdog has entered into another arrangement as it seeks to place itself at the forefront of financial technology.

Singaporean and Japanese authorities have shaken hands on an agreement that seeks to spur the growth of financial technology in both markets.

Earlier this week, the Monetary Authority of Singapore and the Financial Services Agency of Japan announced they had established a “cooperation framework to enhance fintech linkages between both countries”.

Under the agreement, both regulators can refer fintech companies in their respective countries to each other’s markets. It also outlines how referred companies can initiate discussions with the relevant regulator and how they can get help navigating the regulatory landscape in the jurisdiction they are looking to enter.

Additionally, the framework explains how both financial watchdogs plan to share and use information on financial services innovation in their respective markets.

“Technology and innovation remain key enablers of financial sector growth in Singapore and Japan,” said Sopnendu Mohanty, chief fintech officer at MAS. “The setting up of the framework is a great opportunity for the fintech ecosystems in Singapore and Japan, and enhances the already strong financial and economic cooperation between the two countries.”

The new arrangement between Singapore and Japan comes as the city-state continues to strike alliances with other regulators across the world in a bid to place itself at the forefront of fintech.

Earlier this month, MAS and Abu Dhabi Global Market signed a cooperation agreement that sought to facilitate fintech growth in both markets.