The Monetary Authority of Singapore (MAS) has launched the Financial Services Industry Transformation Map (ITM) 2025, which will guide the country’s financial sector over the next few years.
The ITM lays out the strategies to further develop Singapore as a leading international financial centre in Asia, seeking to connect global markets, support Asia’s development, and serve Singapore’s economy.
MAS projected the financial sector to grow by an average 4% to 5% annually from 2021 to 2025 and create an average of 3,000 to 4,000 net jobs each year.
As part of the ITM, the MAS will work with the financial industry to deepen capabilities in asset classes in which Singapore plays a key regional or global role. These are:
Foreign exchange – to broaden and deepen the electronic foreign exchange (FX) trading ecosystem by anchoring more FX platforms and liquidity takers
Insurance – to catalyse insurance risk advisory and alternative risk transfer solutions for Asia, to address pandemic, climate, and cyber risks, and facilitate the participation of capital markets in risk financing
Wealth management – to become an Asian hub for philanthropy through building impact monitoring solutions, philanthropy advisory competencies, and innovative philanthropy models
Asset management – to enhance the variable capital company regime and other fund structures to cater to broader industry needs
Private capital markets – to develop private credit to complement private equity and venture capital funding
Fintech – to support promising fintech start-ups in areas like Web 3.0, artificial intelligence, and green fintech
MAS will also work with Institute of Banking & Finance, the financial industry and tripartite partners to foster a stronger financial workforce. The Financial Sector Development Fund has earmarked SG$400 million in funding for the 2021-2025 Talent and Leaders in Finance programme, which seeks to help industry professionals find better jobs and advance their careers.