The Monetary Authority of Singapore (MAS) has announced a series of measures aimed at bolstering insurers’ investments in infrastructure and securitised assets. Unveiled at the Singapore International Reinsurance Conference by Chee Hong Tat, Minister for National Development and Deputy Chairman of MAS, these initiatives include a S$30m grant scheme and a revised insurance capital framework.
The S$30m grant, part of the Financial Sector Development Fund, is designed to help insurers develop infrastructure investment capabilities in Singapore. This funding will assist insurers in building dedicated investment teams, enhancing staff skills, and engaging professional services to expand infrastructure investment activities. The grant scheme is effective immediately, with insurers encouraged to contact MAS for further details.
MAS is also proposing enhancements to the insurance capital framework, offering differentiated capital treatment for infrastructure and securitisation investments. This includes lower capital charges for rated infrastructure debt investments meeting specific credit quality requirements, and for qualifying infrastructure equity and debt investments with risk-mitigating features. Additionally, senior investment-grade securitisation tranches meeting criteria for simplicity, transparency, and comparability will also attract lower capital charges. MAS is seeking feedback on these proposals, with the consultation closing on 18 December 2026.
Furthermore, MAS plans to recognise more external credit assessment institutions with expertise in infrastructure and securitisation issuances. The authority is also collaborating with the industry to simplify the assessment of infrastructure investments, developing standardised disclosure templates and clearer guidance.
These measures are expected to strengthen Singapore’s infrastructure financing ecosystem and mobilise private capital for Asia’s infrastructure needs, aligning with insurers’ long-term obligations to policyholders.
