Financial Services Industry Transformation Map
Financial Services Industry Transformation Map
Asian centre for capital raising and enterprise financing
MAS announced a new US$5 billion private markets programme for investments into private equity (PE) and infrastructure (13 November 2018)
Under the programme, MAS will fund PE and infrastructure fund managers who are committed to either deepening their existing presence or establishing a significant presence in Singapore. This will help create a deeper and more vibrant private markets ecosystem in Singapore that will strengthen the financing channels to support enterprises.
Deputy Prime Minister and Minister for Finance Heng Swee Keat announced a new S$75 million equity market grant scheme to promote Singapore as Asia’s centre for capital raising and enterprise financing (14 January 2019)
The Grant for Equity Markets Singapore (GEMS) comprises three components, namely (a) listing grant; (b) research talent development grant; and (c) research initiatives grant. GEMS will be a 3-year initiative with effect from 14 February 2019.
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Asian hub for fund management and domiciliation
Variable Capital Companies framework
Variable Capital Companies framework
- Variable Capital Companies (VCC) Bill was passed by Parliament (1 October 2018)
The VCC Act provides for the incorporation and operation of a new corporate structure tailored for investment funds. The VCC framework will encourage fund managers to co-locate fund domiciliation with their fund management activities which are already in Singapore, thereby creating a full-service fund ecosystem.
- MAS issued public consultation on the VCC subsidiary legislation (30 April 2019)
The subsidiary legislation sets out the operational framework for the VCC Act, including details pertaining to the incorporation of a VCC, the registration of sub-funds and the re-domiciliation process for foreign corporate entities to Singapore as VCCs. The VCC Act is expected to come into force in Q4 2019.
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Global capital for Asian insurance and risk transfer
Cambodia, Indonesia, Japan, Lao PDR, Myanmar, and Singapore signed the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) MOU (14 December 2018)
The MOU signing followed after the announcement at the ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting in Manila on 4 May 2018 to establish SEADRIF and domicile the facility in Singapore. SEADRIF aims to provide ex-ante climate and disaster risk financing solutions and instruments for ASEAN members, and will commence with a parametric sovereign flood risk insurance pool for Lao PDR and Myanmar, the first of its kind in the region.
The first Singapore Insurance-Linked Securities (ILS) bond, Orchard Re, was launched by the Insurance Australia Group (IAG) (21 December 2018)
It was also the first catastrophe bond for IAG, and the first to be domiciled in Asia Pacific. Two additional catastrophe bonds, First Coast Re II sponsored by Security First and Manatee Re III sponsored by Safepoint Insurance, were subsequently issued in May 2019. Notably, First Coast Re became the first full 144A cat bond to be issued in Singapore, which is the most liquid type of ILS offering, and underscored Singapore’s capabilities to facilitate such a transaction.
Leading centre for Asian fixed income – Green, Social and Sustainability Bonds
Leading centre for Asian fixed income - Green, Social and Sustainability Bonds
MAS signed an MOU with the International Finance Corporation (IFC) to accelerate the growth of the green bond asset class in Asia (7 June 2018)
The MOU aims to encourage green bond issuances by financial institutions in Asia by supporting capacity building programmes for professionals on green finance. MAS and IFC will also work together to promote the use of internationally recognised green bond standards and frameworks.
Launch of the ASEAN Social and Sustainability Bond Standards (11 October 2018)
The ASEAN Capital Markets Forum (ACMF) continues to place emphasis on sustainable finance and launched the ASEAN Social Bond Standards and the ASEAN Sustainability Bond Standards. Together with the ASEAN Green Bond Standards launched in November 2017, the ASEAN region now has a complete suite of standards to accelerate the development of sustainable finance in the region. The standards are intended to enhance transparency, consistency and uniformity of ASEAN green, social and sustainability bonds, which will provide guidance to ASEAN issuers and assist global investors to make informed investment decisions.
MAS expanded the Green Bond Grant Scheme to include social and sustainability bonds to catalyse the growth of social and sustainability bond markets in Singapore (22 February 2019)
In addition to green bonds, the new Sustainable Bond Grant Scheme (SBG) will fund 100% of eligible expenses attributable to obtaining an external review for social and sustainability bonds, up to a grant amount of S$100,000 for each qualifying issuance. The scheme was also extended to 31 May 2023.
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Related Links to Financial Services Industry Transformation Map
Jobs & Skills
Jobs & Skills
The Institute of Banking and Finance (IBF) Careers Connect was launched to help financial industry professional with skills upgrading and job matching (1 August 2018)
The new centre will provide guidance on hiring trends, skills required for specific jobs, career advisory and relevant training programmes to enhance professionals’ employability in the financial industry. IBF Careers Connect is the result of a tripartite partnership involving MAS, IBF, Employment and Employability Institute, National Trades Union Congress (NTUC), SkillsFuture Singapore, Workforce Singapore and industry associations. With the launch of the IBF Careers Connect, IBF will become an integrated service provider for all matters relating to skills, jobs and careers in the financial industry.
The new centre will provide guidance on hiring trends, skills required for specific jobs, career advisory and relevant training programmes to enhance professionals’ employability in the financial industry. IBF Careers Connect is the result of a tripartite partnership involving MAS, IBF, Employment and Employability Institute, National Trades Union Congress (NTUC), SkillsFuture Singapore, Workforce Singapore and industry associations. With the launch of the IBF Careers Connect, IBF will become an integrated service provider for all matters relating to skills, jobs and careers in the financial industry.
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The Tripartite Advisory (TA) on Human Capital Practices for Insurance was launched to guide the insurance industry on progressive HR practices and better development of their talent pool (4 October 2018)
This follows the launch of TA for the Banking sector in March 2018, and sets out good human resource practices in the areas of building a talent pipeline, skills-based hiring, and managing retrenchment responsibly. It also encourages insurance firms to support their employees in acquiring relevant skills and transitioning to new job roles, as jobs are being transformed by technology.
This follows the launch of TA for the Banking sector in March 2018, and sets out good human resource practices in the areas of building a talent pipeline, skills-based hiring, and managing retrenchment responsibly. It also encourages insurance firms to support their employees in acquiring relevant skills and transitioning to new job roles, as jobs are being transformed by technology.
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The Institute of Banking and Finance (IBF) and MAS released findings from the joint-study on the impact of data analytics and automation on manpower in the Singapore financial sector (23 April 2019)
The study, one of the most comprehensive ever carried out globally, sets out how data analytics and automation are likely to impact 121 job roles in Singapore’s financial sector over the next three to five years. It provides guidance for financial institutions and individuals on how to prepare themselves for the future of work as the use of data analytics and automation become pervasive in the financial sector.
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Smart Financial Centre
Smart Financial Centre
MAS and the Singapore Exchange collaborate to develop Delivery versus Payment capabilities for settlement of tokenised assets across different blockchain platforms (24 August 2018)
Such capabilities will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenised digital currencies and securities assets, improving operational efficiency and reducing settlement risks. Anquan, Deloitte and Nasdaq have been appointed as technology partners.
Such capabilities will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenised digital currencies and securities assets, improving operational efficiency and reducing settlement risks. Anquan, Deloitte and Nasdaq have been appointed as technology partners.
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World’s first cross-border, open-architecture platform to improve financial inclusion (17 September 2018) The ASEAN Financial Innovation Network (AFIN) launched the API Exchange (APIX), an online Global FinTech Marketplace and Sandbox platform to enable financial institutions and FinTechs to connect to one another through the marketplace, collaborate on experiments in the sandbox, and drive the adoption of APIs for digital transformation and financial inclusion.
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MAS organised the week-long Singapore FinTech Festival 2018 (12-16 November 2018)
Highlights included the FinTech Conference with a new AI in Finance Summit, the FinTech Awards, Global FinTech Hackcelerator, Innovation Lab Crawl, and a new ASEAN zone. The Festival attracted close to 45,000 participants and 500 exhibitors from almost 130 countries. At the Festival’s Global Investor Summit, MAS launched a curated deal-making platform known as Meet ASEAN’s Talents and Champions (MATCH). The platform attracted 840 enterprises and 380 investors, and generated over 17,000 matches between investors and companies.
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MAS and Infocomm Media Development Authority partnered with six private sector partners to create Business sans Borders initiative to foster SME digitalisation (12 November 2018)
This initiative aims to: (a) provide a wide set of digital services and connections to enhance domestic and international trade opportunities for SMEs; (b) promote interoperability between SME ecosystems; (c) facilitate quick and intuitive access in the provision of digital services (such as financial and professional services) with seamless integration; and (d) provide a sandbox environment to accelerate testing and delivery of new services for SMEs.
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MAS consulted on the creation of pre-defined sandboxes to enable firms to embark on experiments more quickly (14 November 2018)
Known as Sandbox Express, firms need not go through the existing bespoke sandbox application and approval process if they intend to conduct certain types of regulated activities where the risks are generally low and well understood. Sandbox Express complements the existing FinTech Regulatory Sandbox.
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MAS-PBC FinTech Cooperation Agreement (CA) (14 November 2018)
MAS signed a FinTech CA with People's Bank of China to promote FinTech cooperation between MAS and PBC, and pave the way for joint innovation projects in the application of key technologies as well as joint research in technology. The FinTech CA also provides for regulatory coordination with regards to the expansion of FinTech companies into each other’s markets. The Fintech CA was exchanged and witnessed by Chinese Premier Li Keqiang and Singapore Prime Minister Lee Hsien Loong at the side of the 33rd ASEAN Summit in November 2018.
The Bank of Canada, Bank of England and MAS published a joint report which assesses alternative models that could enhance cross-border payments and settlements (15 November 2018)
Cross-border payments today are expensive (compared with domestic payments) and can take multiple days and lack transparency, regarding both costs and delivery times. The growing demand warranted a review of current payment and settlement processes. The report examines existing challenges and considers three models of cross-border payments that could result in improvements in speed, cost and transparency for users.Related Link to Smart Financial Centre
Electronic Payments
Electronic Payments
The Association of Banks in Singapore launched PayNow Corporate to facilitate business-to-business payments (13 August 2018)
PayNow Corporate allows businesses to link their bank accounts to their Unique Entity Number, and create PayNow QR codes for e-commerce and bill payments. Businesses can also use PayNow Corporate to pay consumers. PayNow Corporate is an extension of peer-to-peer funds transfer service PayNow, which was introduced in July 2017.
PayNow Corporate allows businesses to link their bank accounts to their Unique Entity Number, and create PayNow QR codes for e-commerce and bill payments. Businesses can also use PayNow Corporate to pay consumers. PayNow Corporate is an extension of peer-to-peer funds transfer service PayNow, which was introduced in July 2017.
MAS introduced the Singapore Quick Response (SGQR) Code to make QR code-based mobile payments easier for consumers and merchants (17 September 2018)
As the world’s first unified payment QR code, SGQR combines multiple payment QR codes into a single SGQR label, making QR code-based mobile payments simple for both consumers and merchants. SGQR has been adopted by 27 payment schemes as of May 2019.
MAS will allow non-bank participants to have access to FAST for greater interoperability with bank accounts (17 September 2018)
This is a major milestone in our payments infrastructure development as it will allow the e-payment system in Singapore to be truly open, accessible and competitive. MAS has formed a Direct FAST industry working group, comprising the operator of FAST, banks, non-banks, and MAS, to develop business and technical requirements for non-banks to connect directly to FAST.
MAS issued E-Payments User Protection Guidelines (28 September 2018)
The Guidelines aim to build trust and encourage wider adoption of e-payments by setting standards on the responsibilities of financial institutions and e-payment users. Under the Guidelines, financial institutions are expected to set clear resolution processes for unauthorised or erroneous payment transactions and provide timely notifications of all e-payment transactions. The Guidelines also set out the responsibilities of e-payments users, including good security practices they should adopt to protect their passwords and e-payment accounts.
Payment Services Act passed in Parliament (14 January 2019)
The Act adopts a modular and risk-focused framework for the regulation of payment systems and payment service providers in Singapore. It provides for regulatory certainty and consumer safeguards while encouraging innovation and growth of payment services and FinTech. The Act expands MAS’ regulatory ambit and grant MAS powers to designate significant payment systems for efficiency and competition reasons. MAS will also regulate more payment services such as digital payment token dealing and exchange, and merchant acquisition. The Act will replace the Payment Systems (Oversight) Act and Money-changing and Remittance Businesses Act when it commences in end-2019.
As the world’s first unified payment QR code, SGQR combines multiple payment QR codes into a single SGQR label, making QR code-based mobile payments simple for both consumers and merchants. SGQR has been adopted by 27 payment schemes as of May 2019.
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MAS will allow non-bank participants to have access to FAST for greater interoperability with bank accounts (17 September 2018)
This is a major milestone in our payments infrastructure development as it will allow the e-payment system in Singapore to be truly open, accessible and competitive. MAS has formed a Direct FAST industry working group, comprising the operator of FAST, banks, non-banks, and MAS, to develop business and technical requirements for non-banks to connect directly to FAST.
MAS issued E-Payments User Protection Guidelines (28 September 2018)
The Guidelines aim to build trust and encourage wider adoption of e-payments by setting standards on the responsibilities of financial institutions and e-payment users. Under the Guidelines, financial institutions are expected to set clear resolution processes for unauthorised or erroneous payment transactions and provide timely notifications of all e-payment transactions. The Guidelines also set out the responsibilities of e-payments users, including good security practices they should adopt to protect their passwords and e-payment accounts.
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Payment Services Act passed in Parliament (14 January 2019)
The Act adopts a modular and risk-focused framework for the regulation of payment systems and payment service providers in Singapore. It provides for regulatory certainty and consumer safeguards while encouraging innovation and growth of payment services and FinTech. The Act expands MAS’ regulatory ambit and grant MAS powers to designate significant payment systems for efficiency and competition reasons. MAS will also regulate more payment services such as digital payment token dealing and exchange, and merchant acquisition. The Act will replace the Payment Systems (Oversight) Act and Money-changing and Remittance Businesses Act when it commences in end-2019.
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AI and Data Analytics
Strengthening AI and Data Analytics
MAS' collaboration with the Economic Development Board, Infocomm Media Development Authority and the Institute of Banking and Finance to accelerate adoption of artificial intelligence (AI) in Singapore's financial sector (7 May 2018)
The joint effort will encompass three key prongs: developing AI products, matching users and solution providers, and strengthening AI capabilities. The agencies will jointly facilitate research and development of new AI technologies and adoption of AI-enabled products, services and processes for the financial sector.
The joint effort will encompass three key prongs: developing AI products, matching users and solution providers, and strengthening AI capabilities. The agencies will jointly facilitate research and development of new AI technologies and adoption of AI-enabled products, services and processes for the financial sector.
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MAS revised notices on the submission of statistics and returns for banks to enhance its data collection approach (17 May 2018)
The aim is to reduce duplication of data submissions, automate all data collection, and collect more granular data. Greater data granularity will allow for better identification of potential risks to the banking system, while standardised requirements will provide greater consistency and reusability of the data. The changes will take effect from 1 October 2020.
MAS released a set of principles to promote fairness, ethics, accountability and transparency (FEAT) in the use of artificial intelligence (AI) and data analytics in finance (12 November 2018)
The FEAT Principles provide guidance to firms offering financial products and services on the responsible use of AI and data analytics, to strengthen internal governance around data management and use. MAS worked closely with a group of senior industry partners through a FEAT Committee in developing the Principles.
The aim is to reduce duplication of data submissions, automate all data collection, and collect more granular data. Greater data granularity will allow for better identification of potential risks to the banking system, while standardised requirements will provide greater consistency and reusability of the data. The changes will take effect from 1 October 2020.
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MAS released a set of principles to promote fairness, ethics, accountability and transparency (FEAT) in the use of artificial intelligence (AI) and data analytics in finance (12 November 2018)
The FEAT Principles provide guidance to firms offering financial products and services on the responsible use of AI and data analytics, to strengthen internal governance around data management and use. MAS worked closely with a group of senior industry partners through a FEAT Committee in developing the Principles.
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Empowering the Consumer
Empowering the Consumer
MoneySense expanded public education outreach, including organising MyMoney@Campus in polytechnics for the first time (18 May 2018)
MoneySense pressed on with efforts to educate the public on investing and personal finance matters, including reaching out to tertiary students, and holding the second run of the World Investor Week public townhalls.
MoneySense pressed on with efforts to educate the public on investing and personal finance matters, including reaching out to tertiary students, and holding the second run of the World Investor Week public townhalls.
MoneySense launched a free online Financial Health Check tool in a series of initiatives to help improve Singaporeans’ financial health (17 November 2018)
MoneySense celebrated its 15th anniversary in 2018 with a series of roadshows held from November 2018 to February 2019. Visitors at the roadshow could seek more detailed guidance on their financial health via complimentary one-to-one financial health clinics run by various MoneySense partners. The initiative aimed to nudge Singaporeans to take active steps to assess their financial health, identify gaps, and to plug these gaps with customised recommendations.
MAS announced that Supplementary Retirement Scheme (SRS) funds can be used to invest in Singapore Savings Bonds (SSB), and the doubling of the SSB Individual Limit (17 December 2018)
Investors can apply for SSB using their SRS funds with effect from 1 February 2019. The Individual Limit for SSB has also been raised to S$200,000 from S$100,000.
MoneySense celebrated its 15th anniversary in 2018 with a series of roadshows held from November 2018 to February 2019. Visitors at the roadshow could seek more detailed guidance on their financial health via complimentary one-to-one financial health clinics run by various MoneySense partners. The initiative aimed to nudge Singaporeans to take active steps to assess their financial health, identify gaps, and to plug these gaps with customised recommendations.
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Investors can apply for SSB using their SRS funds with effect from 1 February 2019. The Individual Limit for SSB has also been raised to S$200,000 from S$100,000.
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International Cooperation
International Cooperation
Bilateral Dialogues
The 4th UK-Singapore Financial Dialogue was held in London (11 September 2018)Topics discussed included financial market developments, regulatory initiatives to strengthen accountability and standards of conduct in the financial sector, and the impact of new technology on the financial sector.
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The 4th Singapore-Switzerland Financial Dialogue was held in Bern (11 March 2019)
The dialogue covered regional and domestic developments, and areas of interest in asset management, surveillance of digital token markets, and data strategies and policies.
The 14th Joint Council for Bilateral Cooperation (JCBC) was held in Singapore (20 September 2018)
JCBC was co-chaired by then Singapore Deputy Prime Minister and Coordinating Minister for National Security, Mr Teo Chee Hean, and People’s Republic of China Executive Vice Premier of the State Council, Mr Han Zheng. For the financial sector, Singapore and China agreed to deepen existing collaboration on supervisory cooperation, financial connectivity, FinTech and the Belt and Road Initiative.
The Inaugural China-Singapore (Chongqing) Connectivity Financial Summit was held in Chongqing (2 November 2018)
This inaugural Summit, co-organised by MAS and the Ministry of Trade and Industry, the China Ministry of Commerce, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the Chongqing Municipal People’s Government, brought together officials and financial institutions from the Western region of China and ASEAN. The Summit promoted collaboration opportunities on cross-border financial and infrastructure connectivity between both regions, as well as discussed emerging technology to enhance financial inclusion.
The 4th Shanghai-Singapore Financial Forum was held in Shanghai (27 November 2018)
Key areas of financial cooperation were announced, including financing Belt-and-Road Initiative projects, facilitating international investments into China’s capital markets, and creating an ecosystem for collaboration between financial institutions and FinTech firms. MAS and the Shanghai Municipal Financial Regulatory Bureau (SFRB) also organised a successful second run of the bilateral training and exchange programme on effective financial supervision for 23 participants from SFRB.