International Banking Facility

MAS Launches 2025 Financial Services Industry Transformation Map

Singapore, 15 September 2022… Mr. Lawrence Wong, Deputy Prime Minister and Minister of Finance, and Deputy Chairman of the Monetary Authority of Singapore (MAS), launched the Financial Services Industry Transformation Map (ITM) 2025 today. ITM 2025 lays out growth strategies to further develop Singapore as a leading international financial center in Asia – to connect global markets, support Asia’s development and serve Singapore’s economy.

2. The MAS projects that the financial sector will grow on average by 4% to 5% per year between 2021 and 2025 and will create 3,000 to 4,000 net jobs on average each year.

3. LMI includes five key strategies:

a. Improve the strengths of the asset class;
b. Digitize the Financial Infrastructure;
vs. Catalyze the Net-Zero transition in Asia;
D. Shaping the future of financial networks; and
e. Promote a skilled and adaptable workforce.

Improving asset class strengths

4. MAS will work with the financial industry to deepen its capabilities in asset classes where Singapore plays a key regional or global role.

a. Exchange – Broaden and deepen the electronic currency (FX) trading ecosystem by anchoring more FX platforms and liquidity takers.
b. Insurance – Catalyze insurance risk advisory and alternative risk transfer solutions for Asia, to address pandemic, climate and cyber risks, and facilitate capital market participation in risk financing.
vs. Wealth management – Become the Asian center for philanthropy by creating impact monitoring solutions, philanthropy advisory skills and innovative philanthropy models.
D. Asset Management – Improve the regime for open-end companies and other fund structures to meet the broader needs of the industry.
e. Private capital markets – Develop private credit to complement private equity and venture capital.
f. FinTech – Anchoring promising FinTech start-ups in areas such as Web 3.0, artificial intelligence and green FinTech.

Digitize financial infrastructure

5. The MAS will promote the development of digital infrastructures and platforms.

a. Bond market infrastructure – Improve end-to-end efficiency in primary bond issuance, listing and settlement processes, and strengthen Singapore’s proposition as the bond issuance and listing venue of choice.
b. Funds settlement utility – Develop an industry-leading fund settlement utility to centralize subscription, redemption and record-keeping workflows and facilitate reconciliation of fund data streams, reducing settlement time and improving efficiency.
vs. SME Business Discovery Platform (Business-sans-Borders) – Launch a digital platform to connect small and medium-sized enterprises (SMEs) in growing regions. This facilitates business discovery and allows easier access to trade finance for participating SMEs.

Catalyzing the Net-Zero Transition in Asia

6. To catalyze Asia’s transition to net zero, MAS is working with industry to develop innovative solutions to scale up sustainable and transition finance.

a. Provide greater clarity on transition activities including through the development of an industry-led taxonomy for eight priority sectors.
b. Facilitate the decarbonization of real economy sectors thanks to financing solutions adapted to businesses.
vs. Improve sustainability information and create data utilitiessuch as Project GreenPrint, to facilitate corporate sustainability disclosures and investor access to corporate ESG data.
D. Provide a grant of S$100 million over the period 2021-2025 for Capacity Building, Green FinTech, Climate Risk and Reinsurance, and Sustainable and Transition Finance Solutions.

Shaping the future of financial networks

seven. MAS aims to improve payment connectivity and create an innovative and responsible digital asset ecosystem.

a. Develop cross-border payment links with regional economies (e.g. real-time payment links, Nexus projectNexus project is a plan that describes how countries can fully integrate their retail payment systems into a single cross-border network.).
b. Explore the potential of distributed ledger technology in promising use cases (e.g. cross-border payments, trade finance and capital markets).
vs. Support the tokenization of financial assets and the real economy (e.g. Project GuardianProject Custodian is a collaborative initiative with the financial services industry that seeks to explore the economic potential and value-added use cases of asset tokenization.).
D. Enable Digital Currency Connectivity (e.g. Orchid ProjectOrchid Project aims to build the technology infrastructure and capabilities needed to issue a digital Singapore dollar, should MAS decide to do so in the future.).

Foster a skilled and adaptable workforce

8. MAS and the Institute of Banking & Finance (IBF) will work closely with the financial industry and tripartite partners to foster a strong workforce.

9. The Financial Sector Development Fund will provide S$400 million grant to the Talents and leaders in finance program for 2021 – 2025 to enable industry professionals to get good jobs and advance in their careers.

a. Strengthen the skills of the workforce in growth areas and provide training support for finance professionals at different stages of their careers.
b. Develop specialized talents in areas such as sustainability and technology.
vs. Develop leaders through opportunities to gain expertise, international exposure and networks to help them succeed in their leadership roles.


Further information

ITM 2016 – 2020

As one of the 23 sectors identified by the Committee for the Economy of the Future, the Financial Services ITM was launched for the first time in 2017 with a strong focus on innovation and technology adoption and developing a world-class workforce. From 2016 to 2020, the financial services sector grew by an average of 5.7% per year, exceeding the target of 4.3% per year. The sector has created an average of 4,100 net jobs each year, above the target of 3,000 net jobs per year.