Singapore Releases 2025 Financial Services Transformation Map

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The 2025 Financial Services Industry Transformation Map (ITM) has been spear by Lawrence Wong, Deputy Prime Minister and Minister of Finance, and Deputy Chairman of the Monetary Authority of Singapore (MAS).

ITM 2025 lays out growth strategies for Singapore to become a leading international financial center in Asia, connecting global markets, supporting Asia’s development and serving Singapore’s economy. Singapore aspires to be Asia’s philanthropic hub by developing impact monitoring tools, philanthropy advisory skills and new models of philanthropy.

The MAS projects that the financial sector will grow by 4% to 5% per year between 2021 and 2025, creating 3,000 to 4,000 net jobs per year. It will work with the financial sector to build skills in asset classes where Singapore plays an important regional or global role.

The ITM includes five core strategies: empowering asset classes, digitizing financial infrastructure, catalyzing the transition to net zero in Asia, shaping the future of financial networks, and cultivating a skilled and adaptable workforce.

By anchoring new FX platforms and liquidity takers, MAS hopes to broaden and deepen the electronic currency (FX) trading ecosystem. Additionally, the organization aims to catalyze insurance risk advice and alternative risk transfer solutions for Asia, address pandemic, climate and cyber threats, and encourage market engagement. financiers in risk financing.

In addition, the country wants to improve the open-ended company regime and other fund structures to meet the needs of a wider industry; developing private credit to complement private equity and venture capital; and anchor promising FinTech start-ups in areas such as Web 3.0, artificial intelligence and green FinTech.

MAS will facilitate the development of digital infrastructure and platforms under ITM 2025. It will increase the efficiency of primary bond issuance, listing and settlement processes, while strengthening Singapore’s position as a preferred destination for the issuance and listing of bonds.

The agency will also create an industry funds settlement utility to centralize subscription, redemption and record keeping procedures and to facilitate the reconciliation of fund data flows, reducing settlement time and increasing efficiency.

Additionally, it will create a digital platform to connect small and medium-sized enterprises (SMEs) in all growth areas. This accelerates business discovery and makes business financing more accessible to participating SMEs.

On the other hand, to accelerate Asia’s transition to net zero energy, MAS is working with industry to develop creative solutions to increase sustainable and transition finance. This will bring more clarity to transition initiatives, such as the creation of an industry-led taxonomy for eight core industries.

In addition to encouraging the decarbonization of real economy sectors through appropriate corporate finance solutions; improving sustainability information and developing data utilities, such as Project GreenPrint, to facilitate corporate sustainability information and investor access to company ESG data; and providing S$100 million in grants between 2021 and 2025 for capacity building, green FinTech, climate risk and reinsurance, and solutions for sustainable development.

MAS’ goal is to improve payment connectivity while creating a creative and responsible digital asset ecosystem. Targeting to increase cross-border payment connections with regional economies; Investigate the possibilities of distributed ledger technology in promising applications. Tokenize financial and real assets and enable digital currency integration.

To build a strong workforce, MAS and the Banking and Financial Institute (BFI) will work closely with the financial sector and tripartite partners.

In the year 2021-2025, the Financial Sector Development Fund is offering a S$400 million grant to the Talent and Leaders in Finance program to enable industry professionals to get good jobs and careers. progress in their career. This includes the following:

  • Develop workforce skills in growth areas and provide training support to finance professionals at different stages of their careers.
  • Create specialized talent in areas such as sustainability and technology.
  • Develop leaders by providing them with opportunities to gain expertise, international exposure and networks that will help them succeed in their leadership roles.
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