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5SINGAPOREBANKING&FINANCIALSERVICESDIRECTORY2024/2025Injectingadditional$5billiontodeveloptheFinancialSectorToreinforceSingaporesglobalcompetitiveleadthegovernmentannouncedthatitwillinjectanadditionalS$2billionintodevelopingtheFinancialSectorDevelopmentFund(FSDF);andanotherS$3billiontowardsResearchInnovationandEnterprise2025(RIE2025)planAdministeredbytheMonetaryAuthorityofSingaporetheFSDFprovidesgrantstofirmsandindividualsinthefinancialservicessectorLaunchedin2020theRIE2025planhadaninitialcommitmentofS$25billionWiththelatestinjectionSingaporesinvestmentinresearchinnovationandenterprisewillbesustainedatabout1percentofgrossdomesticproductThiswillgiveMASmoreresourcestotakefulladvantageofcurrentopportunitiesandextendourleadinthefinancialservicessector–notjusttodomoreinthecoreareasofbankingcapitalmarketsassetmanagementandinsurancebutalso tobuildcapabilitiesinnewareaslikeFinTechaswellasgreenandtransitionfinanceFinanceMinisterLawrenceWonginhisBudgetspeechinFebruary2024OntheglobalFinTechindustryPwCreportedanunprecedentedgrowthoverthepastfewyearsespeciallyduringtheCOVID-19pandemicasmanycountriestransitionintocashlesssocietiesInitsFinTechreportPwCrevealedthat60%ofrespondentsinthepaymentsand35%inthelendingsectorreportedmorethan$10millioninannualrevenueanditisexpectedthatthenumberofglobaldigitalpaymentuserswillreach548billionby2027ItdescribedtheFSDFtop-uptobuildcapabilitiesinFinTechasatimelymeasure to capture the new opportunitiesinthissectorTheRegionsNetZeroTargetOffersGrowthOpportunitiesInthespeechmadeattheInstituteofBankingandFinance(IBF)DistinctionEveningon19October2023DeputyPrimeMinisterHengSweeKeatpointedoutthatSingaporesfinancialsectorcansupporttheregionalnet-zerotransitionproactivelyEstimatesshowthat$31trillionofannualinvestmentisneededinAsiatoreachnetzeroThisisabout$1trillionmorethancurrentlevelofinvestmenthesaidFinancialinstitutionswillneedtointegratesustainabilityconsiderationsacrossoperationsThiswillentailadditionalbusinessdemandsandincreasedcomplexityoftasks–forexampleindevelopingnewinvestmentproductsandEnvironmentalSocialandGovernance(ESG)toolkits/verificationmechanismsMASinpartnershipwiththefinancialindustrylaunchedtheFinanceforNetZeroActionPlanin2023withtheaimtomobilisefinancetocatalyseAsiasnetzerotransitionInconclusionasDPMHengaptlydescribedSingaporesfinancialsectorismaturediversifiedandwell-reputedinternationallyThecountryis wellpositioned toleverageonAsiaarobusteconomicgrowthtopropelitselftoglobalprominenceinthefinancialsectorBycapitalisingontheregionsgrowthtrajectorySingaporeemergesasafinancialpowerhouseembodyingforward-thinkingstrategiesresilienceandadaptability
