Lawrence Wong, Deputy Prime Minister and Minster for Finance, and Monetary Authority of Singapore (MAS) Deputy Chairman, launched the Financial Services Industry Transformation Map (ITM) 2025.
The ITM 2025 lays out the growth strategies “to further develop Singapore as a leading international financial centre in Asia – to connect global markets, support Asia’s development, and serve Singapore’s economy.”
MAS projects the financial sector “to grow by an average 4% to 5% per annum during 2021 – 2025 and create 3,000 – 4,000 net jobs on average each year.”
The ITM comprises five key strategies:
- Enhance Asset Class Strengths;
- Digitalize Financial Infrastructure;
- Catalyze Asia’s Net-Zero Transition;
- Shape the Future of Financial Networks; and
- Foster a Skilled and Adaptable Workforce.
Enhance Asset Class Strengths
MAS will work with the financial industry “to deepen capabilities in asset classes in which Singapore plays a key regional or global role.”
Foreign exchange – Broaden and deepen the electronic foreign exchange (FX) trading ecosystem “by anchoring more FX platforms and liquidity takers.”
Insurance – Catalyze insurance risk advisory and alternative risk transfer solutions for Asia, “to address pandemic, climate, and cyber risks, and facilitate the participation of capital markets in risk financing.”
Wealth management – Become Asia’s center for philanthropy through “building impact monitoring solutions, philanthropy advisory competencies, and innovative philanthropy models.”
Asset management – Enhance the Variable Capital Company regime and other fund structures “to cater to broader industry needs.”
Private capital markets – Develop private credit “to complement private equity and venture capital funding.”
FinTech – Anchor promising FinTech start-ups “in areas like Web 3.0, artificial intelligence, and green FinTech.”
Digitalise Financial Infrastructure
MAS will “promote the development of digital infrastructure and platforms.”
- Bond market infrastructure – Improve end-to-end efficiency in primary bond issuances, listing and settlement processes, and strengthen Singapore’s proposition as a bond issuance and listing venue of choice.
- Funds settlement utility – Develop an industry funds settlement utility to centralise subscription, redemption, record-keeping workflows, and facilitate reconciliation of fund data flows, thereby reducing settlement time and improving efficiency.
- SME trade discovery platform (Business-sans-Borders) – Launch a digital platform to connect small and medium enterprises (SMEs) across growth regions. This facilitates trade discovery and enables easier access to trade financing for participating SMEs.
Catalyze Asia’s Net-Zero Transition
To catalyze Asia’s transition towards net-zero, MAS is working “with the industry to develop innovative solutions to scale up sustainable and transition financing.”
Provide greater clarity on transition activities “including through the development of an industry-led taxonomy for eight priority sectors.”
Facilitate the decarbonization of real economy sectors “through appropriate financing solutions for corporates.”
Enhance sustainability disclosures and build data utilities, “such as Project GreenPrint, to facilitate companies’ sustainability disclosures and investors’ access to companies’ ESG data.”
Provide S$100 million grant funding over 2021 – 2025 “for capability building, green FinTech, climate risk and reinsurance, and solutions for sustainable and transition finance.”
Shape the Future of Financial Networks
MAS aims “to enhance payments connectivity and build an innovative and responsible digital asset ecosystem.”
Expand cross-border payment linkages “with regional economies (e.g. real-time payment linkages, Project Nexus).”
Explore potential of distributed ledger technology in “promising use cases (e.g. cross-border payments, trade finance, and capital markets).”
Support tokenization of financial and real economy assets (e.g. Project Guardian).
Enable digital currency connectivity (e.g. Project Orchid).
Foster a Skilled and Adaptable Workforce
MAS and the Institute of Banking & Finance (IBF) will “work closely with the financial industry and tripartite partners to foster a strong workforce.”
The Financial Sector Development Fund will “provide S$400 million grant funding to the Talent and Leaders in Finance program over 2021 – 2025 to enable industry professionals to take up good jobs and advance in their careers.”
Build workforce competencies “in growth areas and provide training support for finance professionals at different stages of their careers.”
Develop specialist talent in areas “such as sustainability and technology.”
Develop leaders through opportunities “to acquire expertise, international exposure, and networks to help them succeed in their leadership roles.”