MAS lays down new roadmap for SG’s financial services sector

The Monetary Authority of Singapore (MAS) has announced a new strategy where it projects the country’s financial services sector to grow by an average of 4% to 5% per year until 2025.

Photo credit: Monetary Authority of Singapore

The Financial Services Industry Transformation Map (ITM) 2025 aims to position Singapore as an international financial center in Asia. It also sees between 3,000 and 4,000 new jobs created within the financial services sector each year.

The ITM 2025 comprises five strategies: strengthening asset classes, digitalizing financial infrastructure, catalyzing Asia’s net-zero transition, shaping the future of financial networks, and fostering a skilled and adaptable workforce.

Among the asset classes that the MAS aims to strengthen include foreign exchange, wealth management, and fintech. Meanwhile, the regulator will promote the development of digital platforms focused on the bond market, funds settlement, and SME trade.

The ITM 2025 also detailed the MAS’ sustainability and net-zero commitments. This includes a S$100 million (US$71 million) grant disbursed between 2021 and 2025 that will focus on green fintech solutions, climate risk and reinsurance projects, and other similar efforts.

Completing the MAS’ five-pronged strategy are its commitment to build and improve its digital asset ecosystem, which includes projects relating to distributed ledger technology and tokenization, and its plan to support the financial sector’s workforce, which involves a S$400 million (US$284.5 million) grant aimed at beefing up job and career opportunities.

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The ITM 2025 is a continuation of the first financial services roadmap that the MAS rolled out in 2017. According to a speech by Lawrence Wong, deputy chairman of the MAS, the sector has exceeded several targets laid out in the first ITM. This includes the country’s financial services sector growing by more than 6% per year between 2016 and 2020, up from its target growth rate of 4% per annum.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.42.