In brief
Singapore’s Monetary Authority of Singapore (MAS) unveiled a 30‑million‑Singapore‑dollar grant—about $23.5 million U.S. dollars—to finance insurers’ development of infrastructure investment teams. The grant will cover hiring staff, training and outsourcing services as insurers begin to deploy capital into long‑term projects. MAS also rolled out a revised, risk‑sensitive capital framework designed to match insurers’ long‑dated liabilities with infrastructure assets and securitized investments.
In Singapore, on 2 November, the Monetary Authority of Singapore (MAS) announced a 30‑million‑Singapore‑dollar grant—approximately 23.5 million U.S. dollars—to help insurers develop infrastructure investment capabilities, according to a statement from Xinhua.
The grant will be sourced from the Financial Sector Development Fund and is part of an “Infrastructure Capability Development Grant for Insurers” program designed to be effective immediately. MAS said the money will cover the expenses of establishing dedicated investment teams, training existing staff, and engaging professional services that enable insurers to originate, assess, and manage infrastructure investments.
Alongside the grant, MAS introduced a risk‑sensitive capital framework aimed at reflecting the underlying risks of long‑term investments. The new framework maintains prudential standards and policyholder protection while giving insurers more flexibility to invest in infrastructure and securitization structures.
MAS officials noted that infrastructure and other long‑term assets—especially those acquired through securitization—could complement insurers’ long‑dated liabilities. By aligning these liabilities with suitable assets, insurers can mobilise additional private capital for regional infrastructure projects.
The central bank’s move comes as part of a broader effort to attract long‑term private investment into Singapore’s infrastructure needs. The grant and regulatory changes are intended to give insurers the tools and confidence to participate more actively in the market.
No comments have been made yet by insurance companies regarding the grant, and MAS has not yet indicated a timeline for the roll‑out of the revised capital framework beyond the statement released on Monday.
