MAS partners private sector to shore up Singapore's asset management value chain

SINGAPORE – Singapore’s central bank will join hands with the private sector here to pinpoint emerging trends and devise strategies to develop Singapore’s $4 trillion asset management industry.

The Singapore Funds Industry Group (SFIG) will bring together all the key players across the entire asset management value chain to help strengthen Singapore’s value proposition as a leading full-service asset management and fund domiciliation hub, said the Monetary Authority of Singapore (MAS) on Tuesday (April 27).

SFIG will include not just fund managers but also service providers such as lawyers, tax advisers, fund administrators and directors.

These service providers work closely with fund managers to support a fund’s operations in areas such as fund structuring and set-up, fund administration, regulatory reporting, tax advisory and fiduciary oversight.

The SFIG will comprise four working groups – for infrastructure and innovation, policy, capabilities and training, and promotion and advocacy.

The SFIG executive committee (exco) will be co-chaired by Mr Kai-Niklas Schneider, managing partner and head of funds and investment group at law firm Clifford Chance Singapore, and Ms Gillian Tan, an assistant managing director at the MAS.

The exco will have senior industry leaders and industry associations representing fund managers and fund service providers.

SFIG said on its website that among other functions, it will formulate and review proposals that the industry and policymakers can adopt, and implement proposed recommendations. It will also serve as a channel of communication between the asset management industry and the MAS and other government stakeholders, and will build capacity and capabilities to support the growth of the local asset management industry.

Mr Schneider said: “As Singapore continues to solidify its position as a premier funds centre, SFIG will play a critical role in coordinating efforts of MAS and private sector stakeholders to continue to drive sustainable development and growth of the Singapore funds industry.”

Singapore is already a leading investment management hub comprising more than 1,000 managers with $4 trillion of assets under management (AUM). About 76 per cent of the AUM is sourced from outside of Singapore, while 69 per cent of the AUM is invested in the Asia-Pacific region.

Also, about 40 per cent of the assets managed here incorporate environmental, social and governance (ESG) considerations.

Ms Tan said: “There is much scope for the funds industry in emerging growth areas such as green finance and sustainability, technology and innovation. The SFIG will maximise synergies across players from various industries to deepen Singapore’s value proposition.”

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