In brief
The Monetary Authority of Singapore has unveiled a 30‑million‑SGD ($23.5 million) grant that will cover the cost of creating and training dedicated infrastructure investment teams. The initiative, part of a broader effort to mobilise long‑term capital for regional projects, comes with a new capital framework that better reflects the risks of infrastructure and securitisation investments.
The Monetary Authority of Singapore (MAS) revealed on Monday a 30‑million‑SGD (~$23.5 million) grant to encourage insurers to invest in infrastructure assets, sparking a new push to channel long‑term private capital toward regional projects.
The grant, drawn from the Financial Sector Development Fund, will immediately fund insurers’ efforts to set up dedicated investment teams, train existing staff and hire professional services needed to launch or expand infrastructure investment activities.
MAS said the move will help insurers align their long‑dated liabilities with similarly long‑term assets such as infrastructure and securitised investments, enhancing the stability of the financial system.
Alongside the grant, MAS will introduce a risk‑sensitive capital framework that better reflects the underlying risks of these new investment types while keeping prudential standards intact and protecting policyholders.
"Our goal is to make infrastructure a credible investment avenue for insurers, thereby mobilising sustained private capital for our region," MAS highlighted in a statement. The scheme is effective right away, signalling a swift implementation.
