In brief
The Monetary Authority of Singapore (MAS) unveiled a 30‑million‑SGD grant, worth about $23.5 million, to help insurers build infrastructure investment capabilities. The initiative is paired with a revised capital framework that reflects the risks of infrastructure holdings while safeguarding policyholders. The scheme aims to mobilise long‑term private capital for regional infrastructure projects and align insurers’ long‑dated liabilities with such assets.
Singapore, 2 November 2026 – The Monetary Authority of Singapore (MAS) announced that it will allocate 30 million Singapore dollars (approximately 23.5 million U.S. dollars) to insurers through an Infrastructure Capability Development Grant, told Xinhua. The grant is part of a broader initiative that includes a revised, risk‑sensitive capital framework designed to encourage insurers to invest in infrastructure and securitisation structures.
The MAS stated that the grant would directly cover the costs of establishing dedicated investment teams, training existing staff, and engaging professional services to launch or expand infrastructure investment activities. The grant, effective immediately, comes from the Financial Sector Development Fund.
According to MAS, infrastructure and related long‑term assets, such as those obtained through securitisation structures, can complement insurers’ long‑dated liabilities. The revised capital framework is intended to better reflect the underlying risks of these investments while maintaining prudential standards and protecting policyholders, the statement said.
MAS framed the initiative as a means to mobilise long‑term private capital for regional infrastructure needs. By enhancing insurers’ expertise and investment capabilities, the central bank expects insurers to play a larger role in funding infrastructure projects across Southeast Asia.
The announcement follows a growing trend of central banks and regulators worldwide seeking to reallocate risk‑bearing capacity toward infrastructure. In Singapore’s case, the grant also aligns with the city‑state’s broader economic strategy to position it as a hub for sustainable and resilient infrastructure financing.
The grant covers five key areas: the creation of dedicated infrastructure investment teams, training of staff, the procurement of professional advisory services, development of investment operating procedures, and the establishment of governance frameworks for infrastructure portfolios.
MAS said that the capital framework change will incorporate risk‑based weighting for infrastructure assets, allowing insurers to utilize a proportionate amount of their capital buffers more efficiently when investing in such long‑dated assets. This approach, it noted, could lead to a more efficient allocation of capital across the insurance sector.
While MAS highlighted the potential benefits for insurers, it also reiterated its commitment to maintaining oversight over the increased exposure to infrastructure risks. The central bank will monitor insurers’ infrastructure portfolios to ensure compliance with the new capital requirements and overall prudential objectives.
The 23.5‑million‑USD grant represents a significant fiscal commitment from Singapore’s financial sector development apparatus. It underscores the country’s intention to be a key player in directing private capital towards infrastructure initiatives that support long‑term economic growth and resilience in the region.
