1. Mr Speaker Sir, I thank Mr. Kenneth Tiong for his interest in the development of Singapore's financial centre, and the potential for us to be a gold trading hub. There's no disagreement with what he has laid out in terms of our ambition.
2. Indeed, that is also something that my colleagues and I in MAS have been looking at to see what are the opportunities that we can capture, not just in the gold market, but across different parts of the financial centre, which, as he mentioned, is multifaceted and multidimensional.
3. The evolution of Singapore's financial sector is not something that has only happened recently. It has started some decades ago, and what we have achieved today is the result of sound policy choices, disciplined governance, and a long-term view of how finance can serve our economy, our companies, and our people. It is not because of luck. It's because of many years of hard work, together with the industry, that we have put in place these pillars of strength.
4. Our financial sector contributes around 14% of GDP in 2025. Between 2021 to 2025, it grew at an average of 4.6% annually with positive spill overs to other sectors, including professional services, and ICT.
5. Today, the financial sector employs almost 200,000 people. More than 80% are locals. Over the past decade, the Singapore financial sector workforce grew by more than 40,000 and about 90% of the net jobs created went to locals.
6. Several factors have underpinned this positive outcome, which has benefited Singapore and many Singaporeans.
7. First, Asia's continued growth and sustained development over the years, has created strong demand for capital, and international companies which are keen to tap into the region's growth opportunities.
8. This has led to financing opportunities for financial institutions, and investment opportunities for both global investors, who are seeking access to Asian markets, and also Asian investors, who are looking to diversify their portfolios globally.
9. Second, a sound and progressive regulatory regime, which safeguards financial stability, and ensures that financial institutions in Singapore adhere to high prudential and regulatory standards and practices.
10. Sir, Mr Tiong mentioned about Dubai and the approach that Dubai has taken. I think we recognise that different financial centres will have different market niches that they want to target, different strengths that they play to. Singapore's strengths and Dubai’s strengths may not be exactly the same. The markets that we target may not be exactly the same. But the scale of international financial markets is large enough for there to be more than one international financial centre. Dubai can be a strong and good financial centre, and so can we. And we can serve different roles, serve different customers, and we can both grow together. It is not a zero sum.
12. Sir, as the global financial landscape evolves, an important point is that our policies would have to adapt to stay fit for purpose. MAS has been working closely with the industry on this, so that we know what are the opportunities, and therefore what are some of the policies that we have to look at.
13. For example, we granted banking licenses to four digital banks, which have added diversity and competition to our banking system and provided consumers and underserved segments of population with greater product offerings.
14. A second example is our fintech regulatory sandbox, which enables firms to experiment with innovative products and business models in a controlled regulatory environment, within time bound relaxations and subject to appropriate safeguards. This encourages experimentation while containing risks, helping firms to innovate by taking calculated risks and pushing the boundaries.
15. And third, talent. Our competitive edge lies in developing a strong core of local talent, as well as attracting complementary professionals from abroad. This combination allows us to build an internationally competitive and innovative financial ecosystem.
16. Sir, MAS does not only carry out regulatory functions. We have been driving the development of Singapore's financial sector for many years.
17. First, deepening our strengths and key asset classes. Beyond our role as a leading regional banking and insurance hub, Singapore has grown to become a major pan-Asian asset management centre, with more than 1200 license fund management companies, managing over $6 trillion in assets. We are working with the industry to expand these capabilities, including a private equity and private credit, to better serve the growth capital needs across Asia. Singapore is also the third largest foreign exchange centre in the world, with over US$ 1.4 trillion traded here every day.
18. Next, strengthening horizontal enablers, such as the use of technology. Through various grants, MAS has supported the establishment of over 15 innovation labs by our financial institutions, and major technology players. This has funded more than 50 projects and proof of concepts, including in artificial intelligence, quantum technology, and cross-border payment linkages with regional partners. These initiatives enable financial institutions to harness technology, to stay competitive in a rapidly changing industry.
18. Now, let me talk about talent development, which is very critical. People are at the heart of everything we do, and the financial sector is a key provider of good jobs for Singaporeans.
19. MAS has launched schemes to build workforce competencies and to develop specialist talents and leaders in finance. For example, in partnership with the industry, we have trained over 8,000 finance professionals in sustainable finance, covering priority roles such as credit risk analysts, and corporate banking relationship managers.
20. We are also uplifting and upscaling our workforce to make good use of AI, helping our institutions to harness technology, to augment jobs, and enabling our workers to be more productive so that they can do higher value-added work.
21. Fourth, co-creating solutions with industry partners. We adopt a collaborative approach, which ensures that policies and development initiatives are aligned with market realities and can play to our strengths. One of Singapore's strengths, which investors look to, is that we are a trusted place, stable, and they can make long term plans. In what we do, we got to bear that in mind. Don't erode our strengths, because that is what differentiates us from other financial centres.
22. Sir, I would like to also add that when we do our plans to develop the financial centre, we study global best practices, and we do pick up useful ideas that have been implemented elsewhere, and we are mindful that different financial centres, they have different contexts, key proposition, and key customer segments.
23. I do welcome the suggestions that Mr Tiong mentioned earlier about the gold market, because as I said, that's also something that we hope to do. Our objectives do not differ, and we thank him for his suggestions, and certainly, I will take on board on what he has mentioned in his speech, to see whether those are ideas that we can also implement, to strengthen our position here as a gold trading hub.
24. Sir, let me conclude my speech. Singapore's financial sector has made much progress over the years as a trusted global hub and an international financial centre. But we are certainly not resting on our laurels, and we are not done building and growing our financial services industry. We believe that there's still a lot more we can do, and the way that we want to move forward is to work very closely with our industry, because I believe that is also one of our strengths. The barriers between the government and the industry here in Singapore – we don't have very tall and rigid barriers; we work very closely with our industry partners, we share ideas, we explore new possibilities, we test out what are some of the ideas that we can implement that will benefit the industry.
25. This is how we have done the review for the equities market, including what PM just mentioned in the budget speech about the equities market development program. The approach that we intend to take, whether for gold market or for other segments of the financial centre, would be the same - work closely with the industry, listen to feedback, be open to new ideas, take calculated risks and be willing to move, be willing to make bold decisions. Some of the things that we try may not succeed, but we must try. And for those that we try and succeed, it may allow us to take off. And in the end, it will benefit our economy, benefit our companies, and most importantly, benefit our people.
26. Sir, my MAS colleagues and I will continue working closely with our industry partners, to expand and grow our financial sector, deepen our capabilities, develop our talent base, and strengthen our connections with other markets. Together, we will drive innovation, sustain our competitiveness, and create more good jobs for Singaporeans in the years ahead. Thank you.
