The Monetary Authority of Singapore (MAS) has released an “industry transformation map” (ITM) for financial services. The graphic is a visual depiction of growth strategies designed to create a leading global financial centre. This “roadmap” highlights the importance of financial innovation or Fintech to the mission of creating a hub that connects global markets, supports Asia’s development, and serves Singapore’s economy.
Speaking at the launch of the ITM, Ong Ye Kung, Minister for Education (Higher Education and Skills) and MAS Board Member, explained how the government aims to achieve growth in financial sector real value-added of 4.3% and productivity of 2.4% annually. The ITM also expects to create 3,000 net jobs in financial services, and an additional 1,000 net jobs in the Fintech sector annually.
While the economy is solid overall, the financial sector is going through a period of significant change. Fintech is critical for Singapore’s financial sector to stay relevant and competitive.
Singapore aims to be a:
- Leading international wealth management hub. MAS is working with the industry to develop Singapore into a centre of excellence for wealth management technology and innovation, and deepen our talent pool to provide comprehensive, high-quality wealth advisory solutions.
- Asian hub for fund management and domiciliation. MAS is leveraging on its external fund management program to anchor deeper asset management capabilities in Singapore. MAS is also working with the industry to position Singapore as a regional fund domiciliation hub through the Singapore Variable Capital Company framework.
- Global forex price discovery and liquidity centre in the Asian time zone. Singapore is currently the third largest FX centre globally. With Asia expected to attract a larger share of global investment flows, MAS will encourage key FX players to anchor their matching and pricing engines here, to enable market participants to benefit from better liquidity and greater efficiency in executing FX transactions.
MAS is working with the financial industry to keep the competitive. A key focus of the ITM will be to facilitate “pervasive innovation” in the financial sector and encourage the adoption of technology for increasing efficiency and creating opportunity.
Minister Ong said it calls for the financial sector to “not just move alongside the changes, but to make the best of these changes – to grow with the region, to harness innovations, and to create a future-ready workforce”.