In Conversation with Chia Der Jiun, Managing Director, Monetary Authority of Singapore
Insights from Chia Der Jiun's address at the Singapore FinTech Festival:
1. Strategic Vision Anchored in Collaboration
Community Focus: MAS is committed to strengthening the fintech ecosystem through global partnerships and events like the SFF, emphasising the power of community-driven growth.
From Experimentation to Scale: The shift from individual projects to industry-wide collaborations demonstrates MAS’s strategic intent to scale innovation effectively, particularly in areas like digital assets and sustainability.
2. Pioneering Payments Infrastructure
Domestic Payments: Singapore’s payment ecosystem is highly advanced, with nearly universal adoption of QR codes. The next frontier is achieving full interoperability across payment schemes.
Cross-Border Ambitions: Project Nexus is a major initiative aimed at revolutionising international payments. By centralising standards and linkages, it promises to drastically reduce transaction times and costs, positioning Singapore as a key global payments hub.
3. Asset Tokenisation as a Game Changer
Efficiency & Cost Reduction: MAS recognises the potential of tokenised financial assets to cut intermediation, costs, and transaction times. The focus is on creating robust frameworks and infrastructure for widespread adoption.
Collaborative Pilots: Initiatives like Project Guardian are essential for exploring real-world applications and overcoming challenges in tokenising various asset classes, from fixed income to funds.
4. Leading in AI Governance
Generative AI Risks: MAS is taking a measured approach, ensuring that both the financial sector and the regulator evolve together. Identifying risks like explainability, security, and data integrity are crucial first steps.
Project MindForge: Establishing industry consortia to co-create governance practices shows MAS’s commitment to responsible AI adoption, making Singapore a thought leader in this space.
5. Sustainability as a Core Pillar
Policy Commitment: MAS is actively driving sustainable finance with carbon taxes and climate disclosure regulations. This underlines Singapore’s ambition to lead Asia in green finance.
Bridging Data Gaps: Recognising challenges in gathering climate-related data, MAS is developing initiatives like Logic Greenprint to simplify and automate this process, ensuring even small businesses can contribute to the sustainability effort.
6. Forward-Looking Approach to Quantum Technology
Early Preparation: MAS is already preparing for quantum computing’s future impact, particularly on security. The proactive focus on quantum encryption highlights the foresight needed to mitigate emerging risks.
Potential Use Cases: Though still in the lab stage, quantum computing’s potential to revolutionise problem-solving across financial sectors is being taken seriously, ensuring Singapore stays ahead of global trends.
Key Takeaways:
- Strategic Collaboration: MAS’s approach of involving industry players in problem-solving ensures that financial innovations are practical and impactful.
- Global Leadership in Finance: From payments to tokenisation and AI governance, Singapore is positioning itself as a global leader in financial technology and innovation.
- Sustainability Focus: There is a clear recognition that sustainable finance is not just a trend but a necessity, with long-term investments in both policy and infrastructure.
- Future-Proofing: Whether it’s AI or quantum technology, MAS’s proactive strategies reflect a forward-thinking approach that balances innovation with regulation.
These insights highlight the comprehensive and strategic efforts of MAS to future-proof Singapore’s financial sector, ensuring it remains resilient, inclusive, and globally competitive.
Speaker:
- Chia Der Jiun, Managing Director, Monetary Authority of Singapore
Moderator:
- Manisha Tank, Broadcaster & TV Presenter