MAS is currently working with industry to unlock more investment flows into infrastructure via capital markets. This includes developing an infrastructure debt takeout facility to facilitate the transfer of infrastructure debt from banks to institutional investors. A group of banks and investors has agreed to conduct a “proof of concept” pilot transaction in September this year. In the promotion of FinTech, MAS has been updating its regulatory framework to ensure that it remains conducive to innovation while providing the necessary safeguards. We have proposed a regulatory sandbox for FIs and non-financial players to experiment with FinTech solutions while limiting the consequences of product failure. We have issued guidelines to enable start-ups and SMEs to more easily access securities-based crowd-funding. We will soon be issuing new guidelines which will provide clarity for FIs leveraging on cloud services to fulfil business and operational needs. Finally, the financial sector continues to create good jobs and build relevant skills. Last year, the financial services sector created a net total of 4,500 jobs. There is a compositional shift towards front office and higher value-added jobs. Demand for talent is strong in sectors such as asset and wealth management, corporate banking, and insurance. Demand is also strong in compliance roles, and technology related fields like cyber security and application development. But there is consolidation in back office jobs, such as roles in lower-skilled IT infrastructure management, operations, and support. Under the national SkillsFuture programme, MAS introduced new initiatives last year to help finance professionals deepen their expertise and acquire new cross-functional capabilities.

It would not be proper for me to say anything about the ongoing investigations beyond the joint statement issued last week. It would also not be proper for me to comment on any specific institution beyond MAS’ statement last week because the supervisory examinations are still ongoing and we have to be fair to the institutions. The two statements last week are unprecedented. We have already said a lot more publicly than we usually do when investigations and reviews have not been completed yet. Instead, I want to focus today on what the findings imply for our financial sector. There is no doubt that the recent findings have made a dent in our reputation as a clean and trusted financial centre. MAS is disappointed with the lapses in AML/CFT controls and breaches of AML/CFT regulations that we have picked up in our FIs. I am told that money laundering is growing more sophisticated in nature and is carefully designed to avoid detection; that these incidents happen in every financial centre and the large and rising frequency in which fines are imposed in other jurisdictions show we are not alone in facing this challenge; and that the rules and practices here are already very strict and on par with global standards. BIS central bankers’ speeches  5  This may all be true but they cannot be an excuse for what has taken place. What happened is simply unacceptable. We may not be any worse than other jurisdictions. But that is no consolation.