In Singapore, the Monetary Authority of Singapore (MAS) announced a 30‑million‑Singapore‑dollar grant, roughly 23.5 million U.S. dollars, to support insurance companies in developing infrastructure investment capabilities. The move follows the bank’s aim to mobilise long‑term private capital for regional infrastructure projects and to match insurers’ long‑dated liabilities with long‑term assets.
MAS said the grant would enable insurers to set up dedicated investment teams, train existing staff, and hire professional advisers to launch or grow infrastructure investment activities. The grant is funded from the Financial Sector Development Fund and is effective immediately.
Grant details
The Initiative—called the Infrastructure Capability Development Grant—focuses on three cost categories: the establishment of dedicated teams, staff training, and professional services. MAS stated that the grant will cover the full cost of these activities, removing a significant barrier for insurers looking to enter or deepen their presence in the infrastructure space.
Beyond the grant, MAS announced a revised capital framework that is more risk‑sensitive. The new framework aims to reflect the underlying risks of infrastructure investments while preserving prudential standards and ensuring policyholder protection.
The bank highlighted that infrastructure and other long‑term assets, including investments through securitization structures, could complement insurers’ long‑dated liabilities. MAS emphasized that the revised framework would better align the risk appetite of insurers with the assets they seek to acquire.
Insurers operating in Singapore, as well as those underwriting life and general insurance in the region, will be the primary beneficiaries of the grant. By covering key setup and advisory costs, MAS hopes to broaden the pipeline of expertise and capital necessary to meet growing regional demand for infrastructure.
MAS also noted that the grant represents a step toward encouraging sustainable and resilient investment practices. Infrastructure projects are expected to generate stable, long‑term returns which can match the temporally extended exposure of insurance obligations.
While the initiative is designed for insurers, industry analysts see potential spill‑over effects. The development of more advanced infrastructure investment capabilities could drive broader private capital flows into local and regional projects, helping address long‑standing gaps in funding for transport, utilities, and logistics.
In a statement released on Monday, MAS confirmed that the grant and the new capital framework are part of a broader strategy to nurture a robust and internationally competitive financial sector. The bank underlined its commitment to supporting insurers’ transition toward longer‑term investment horizons.
