Wednesday, October 4, 2023
HomeEconomySingapore outlines financial services reforms, eyes green finance boom

Singapore outlines financial services reforms, eyes green finance boom

Chen Lin and Guo Xinghui

SINGAPORE (Reuters) – Singapore on Thursday announced plans to overhaul its financial services sector ahead of 2025, With a view to consolidating its position in the “key battleground” of tackling climate change, mobilizing funds to support sustainable financing and green fintech.

The “Industry Transformation Map 2025” plan published by the Monetary Authority of Singapore (MAS) will include measures to streamline the provision of investment funds used by investment funds, including family offices The structure of the tax relief, and the 100million SGD 100million) contribution to local talent in the industry invest.

As the Covid-19 pandemic prolongs, so does Singapore’s appeal as an Asian financial hub, and comprehensive plans have yet to be announced. Containment and concerns about the growing scrutiny of rival Hong Kong in mainland China.

“If we do it right, our financial centre will continue to remain relevant and competitive and become a key global financial centre connecting global markets, supporting Asia’s development and serving Singapore’s economy, ” said Lawrence Wong, Deputy Prime Minister and Minister of Finance of Singapore. High net worth individuals and family offices are doing more in philanthropy. from 2021 to 2025, and create 3,-4, average annual net jobs.

Plan includes S$285 million funding over five years to support financial sector sustainability such as green fintech, new renewable Continuous financing solutions and reinsurance.

Huang said that Asia is a “key battleground” in the fight against climate change. “The financial sector must do its part – mobilizing capital through financing and investment that supports the region’s transition to net zero,” he said.

Under the plan, the corporate structure used by the investment fund, including a family office called a variable capital company (VCC), will be “enhanced”, but details on the enhancement will not be announced until a later stage . VCC was first introduced in 2020 and provides tax exemption.

MAS indicated that it has received a request to improve the VCC framework so that more industry players and asset owners can establish VCCs and convert existing corporate structures to VCCs.

“Singapore’s asset management industry has continued to improve in recent years, maintaining healthy growth despite the pandemic. We continue to see diversification from outside Singapore sources, including North America, Europe, North Asia and Southeast Asia,” MAS said.

($1=1.4050 SGD)




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