International Banking Facility

MAS presents three-year transformation plan for financial services

Mr. Lawrence Wong, Deputy Prime Minister and Minister of Finance, and Deputy Chairman of the Monetary Authority of Singapore (MAS), today launched the Financial Services Industry Transformation (ITM) Map 2025.

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 forecasts an average growth of the financial sector of 4% to 5% per year between 2021 and 2025 and the creation of 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 capabilities in asset classes where Singapore plays a key regional or global role.

a. Foreign Exchange – Broaden and deepen the Foreign Exchange (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 hub of philanthropy by creating impact monitoring solutions, philanthropy advisory skills, and innovative philanthropy models.
D. Asset Management – Improve the open-ended company regime and other fund structures to meet broader industry needs.
e. Private Capital Markets – Develop private credit to complement private equity and venture capital financing.
F. FinTech – Anchor 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 recordkeeping workflows and facilitate reconciliation of fund data streams, reducing settlement time and improving efficiency.
vs. SME Trade 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 through business-friendly financing solutions.
vs. Improve sustainability reporting and build data utilities, such as Project GreenPrint, to facilitate corporate sustainability reporting and investor access to corporate ESG data.
D. Provide funding 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

7. 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, The Nexus Project is a blueprint that outlines how countries can fully integrate their retail payment systems onto 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 (for example, Project Guardian 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. Project Orchid aims to create the technology infrastructure and capabilities 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 a S$400 million grant to the Talents and Leaders in Finance program over the period 2021-2025 to enable professionals in the sector to get good jobs and advance in their careers.

a. Develop workforce skills in growth areas and provide training support for finance professionals at different stages of their careers.
b. Develop specialist talent 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.