The Monetary Authority of Singapore (MAS) has announced a series of measures to encourage insurers to channel more capital into infrastructure and securitised assets, including a S$30m grant scheme and proposed changes to the insurance capital framework.
Announced today by Chee Hong Tat, minister for national development and deputy chairman of MAS, at the Singapore International Reinsurance Conference, the initiatives aim to mobilise long-term private capital to support infrastructure development in Singapore and across Asia.
Under the new Infrastructure Capability Development Grant for Insurers, MAS will allocate S$30m from the Financial Sector Development Fund to help insurers build their infrastructure investment capabilities in Singapore. The funding will help cover the costs of establishing dedicated investment teams, developing employees’ expertise and engaging professional services to establish or expand infrastructure investment activities.
The grant scheme takes effect immediately, with interested insurers able to approach MAS for further details.
Alongside the funding initiative, MAS is consulting on proposed enhancements to Singapore’s insurance capital framework. The changes are intended to introduce more risk-sensitive capital requirements, allowing insurers to benefit from lower capital charges when investing in qualifying infrastructure and securitisation assets.
Under the proposals, rated infrastructure debt investments that meet specified credit quality and other eligibility requirements could attract lower capital charges. Qualifying infrastructure debt and equity investments with additional risk-mitigating features, such as stable revenues supported by long-term contracts and limited exposure to demand risk, could also receive preferential treatment.
In addition, senior investment-grade securitisation tranches meeting specified standards for simplicity, transparency and comparability, or other qualifying conditions relating to portfolio diversification and liquidity safeguards, could benefit from reduced capital requirements.
The consultation will remain open until 18 December 2026, with MAS inviting feedback from industry participants and other interested parties.
The regulator will also recognise additional external credit assessment institutions with relevant expertise in infrastructure and securitisation. It is working with industry participants to develop standardised disclosure templates, clearer assessment guidance and fund-manager declarations to make it easier for insurers to assess whether investments qualify for lower capital charges.
MAS said the measures would help insurers align their investments with long-term policyholder obligations while supporting the development of Singapore’s infrastructure financing and securitisation ecosystem.
The initiatives form part of the broader work of the Growth Capital Workgroup, established by MAS and the Ministry of Energy, Trade and Industry in February 2026 to strengthen access to growth capital and improve the recycling of investment capital into new opportunities.
Together, the measures signal Singapore’s ambition to deepen its insurance investment capabilities and attract more institutional capital towards the infrastructure needs of the region.
