The Monetary Authority of Singapore (MAS) has announced its financial services industry transformation map (ITM), which lays out the Lion City’s plans for its financial services sector to help with the transition to net zero among other things.
“This updated ITM or ITM 2025 is an ambitious one and delivering it will not be easy. The road ahead will be a bumpy one that throws up both risks and opportunities,” said Lawrence Wong, deputy prime minister and minister for finance, and deputy chairman of MAS, at the launch event.
“If we do this right, our financial centre will continue to stay relevant and competitive, and be a key global financial node that connects global markets, supports Asia’s development and serves Singapore’s economy.”
To catalyse the transformation to a net zero carbon economy, the ITM 2025 includes a S$100m ($70.9m) fund that will be made available from 2021 to 2025 for capability building, green fintech, climate risk and reinsurance and sustainable and transition finance.
MAS will also provide financing for corporates to facilitate the decarbonisation of real economy sectors as well as help enhance sustainability disclosures to improve investors’ access to companies’ ESG data.
“We all know that Asia is a key battleground where the war against climate change is to be fought,” said Wong.
“Urgent action is needed. The financial sector must do its part – to mobilise capital through financing and investments that support the region’s transition to net zero.”
As Asia makes its transition to net zero, MAS hopes to transform the city into Asia’s centre for sustainability solutions.
This includes gearing up financial institutions to meet growing market demand for new sustainable finance products and services, such as energy and fuels, transportation, construction, and the built environment sector.
Under its plans, MAS also identified growing interest among high-net-worth individuals and family offices to develop Singapore into a philanthropy centre in Asia.
“We will work with them to set up philanthropic foundations here, identify deserving causes in the region and enable them to better track the impact of their giving,” said Wong.
He hopes this will add to Singapore’s role as a “dynamic and purposeful financial centre” and provide a more holistic service for funds being managed.
This story first appeared on our sister publication, ESG Clarity.