The Monetary Authority of Singapore (MAS) plans to introduce stand-in capabilities for NETS electronic point-of-sales systems to enhance the resilience of digital financial services.
MAS is also working with financial institutions to develop similar solutions for QR code payments, which have gained traction among consumers.
Speaking at the MAS Annual Report 2024/2025 media conference, MAS Managing Director Chia Der Jiun said the regulator is focused on strengthening the resilience of retail payment services this year.
“This allows customers to continue to make contactless payments at merchant point-of-sale terminals, subject to a transaction limit, when a participating bank’s system is disrupted,” Chia said.
MAS expects financial institutions to uphold high levels of resilience and availability for key services and be able to recover services safely and swiftly when disruptions occur.
Chia said this requires financial institutions to plan for resilience and recovery across multiple systems, not just individual systems.
MAS is also working with the financial sector to prepare for future threats such as the potential cybersecurity risks arising from quantum computing.
While quantum computing is not yet mature, Chia noted it could eventually render current encryption techniques obsolete, risking sensitive customer data and financial transactions.
MAS has conducted trials on quantum-safe solutions. In November 2024, MAS and Banque de France announced the completion of an experiment using Post-Quantum Cryptography to secure international electronic communications.
MAS has also completed its Quantum Key Distribution (QKD) sandbox in collaboration with banks and technology partners.
“We will soon be publishing a technical report detailing the results and takeaways. The report will also highlight challenges for future work. We are confident that further work by the industry can address these challenges and enable wider adoption of QKD in time to come,” Chia said.
MAS published an advisory in February 2024 outlining measures financial institutions should consider in their quantum transition efforts.
It plans to engage institutions to prepare a roadmap toward quantum-safe transition.
Separately, MAS has established the Financing Asia’s Transition Partnership (FAST-P) office to support green and transition projects by facilitating up to $500 million of concessional capital from the Singapore government alongside private capital.
A partnership with British International Investment was recently announced.
MAS is also working with industry partners through the Transition Credits Coalition (TRACTION) to develop high-integrity transition credits that can accelerate coal retirement and replacement with clean energy.
TRACTION’s final report is expected at COP30.
