The world of finance is undergoing a digital transformation, and Singapore is setting its sights on becoming a leader in the field.
The Monetary Authority of Singapore (MAS) has recently announced a set of initiatives to support the development of digital asset talent, in addition to developing talent in other areas of the financial sector, such as sustainable and transition financing, private credit, and philanthropy.
Under the new Financial Services Industry Transformation Map (ITM) 2025, MAS will provide SGD400 million in grant funding for skills development and training programs. The finance sector aims to grow faster than the broader economy and create over 3,000 net jobs a year.
Currently, MAS projects that the financial sector will grow by an average of 4 to 5 percent per annum over the next three years.
Responsible use of digital assets
One of the key focus areas for the ITM is digital assets. MAS is looking to develop Singapore's capabilities in this area to tap into the growing global market for digital assets.
In another discussion, MAS reiterated that they are excited about the potential of digital assets and distributed ledger technology (DLT) but cautioned that there are still many risks associated with these technologies. They urged businesses to take a cautious and measured approach when implementing DLT solutions.
According to them, the vision is for Singapore to build an innovative and responsible digital asset ecosystem. This includes working with the financial industry and FinTech community to experiment and explore different applications of blockchain technology. This would require skills in digital assets, blockchain programming, and cryptography, among others.
MAS is taking a four-pronged approach to developing the digital asset ecosystem in Singapore:
1. Supporting the development of innovative use cases
2. Encouraging the tokenization of assets
3. Enabling digital currency connectivity
4. Anchoring key players with strong value propositions and risk management
Deputy Prime Minister (DPM) Lawrence Wong, also MAS' deputy chairman, said that the ITM would help Singapore build a future-ready financial sector, even with challenging external conditions.
“We are only just recovering from the Covid-19 pandemic. But we don’t get to take a breather – we are now entering into a phase of elevated macroeconomic and geopolitical risks,” he said. “Drivers like technology and digitalization have the potential to transform and disrupt financial markets and services, so finance must also step up and take bold steps.”
