NEW DELHI, November 7: Singapore’s central bank has made two moves this week to shape where money and technology flow in finance. On November 3, the Monetary Authority of Singapore (MAS) said its new Future of Finance Institute (FFI) has started work, beginning with artificial intelligence, including AI agents. A day earlier, it announced a S$30 million grant and proposed lower capital charges to encourage insurers to invest more in infrastructure and high-quality securitised assets.
Key highlights
- AI institute: the FFI, a public-private platform announced in June, has begun operations with three AI programmes: PathFin.ai, BuildFin.ai and SafeFin.ai.
- Agentic AI: the institute will develop guidance, standards and tools for the safe use of AI agents in financial services.
- Leadership: Alan Lim, head of MAS’s Financial Infrastructure and AI Office, is interim chief executive.
- Insurers: a S$30 million grant, effective November 2, to help insurers build infrastructure investment teams in Singapore.
- Capital rules: MAS is consulting until December 18 on lower capital charges for qualifying infrastructure debt and equity and senior investment-grade securitisation tranches.
| Measure | What it does | Status |
|---|---|---|
| Future of Finance Institute | Public-private platform to speed up safe adoption of new financial technology, starting with AI and later tokenisation | Operating from November 3 |
| PathFin.ai | Knowledge hub and communities of practice to share AI solutions across banks, insurers and other firms | Being set up |
| BuildFin.ai | Guidance, standards and common tools for deploying AI, including AI agents | Being set up |
| SafeFin.ai | Good practices for MAS’s AI risk management guidelines; enhancement of the MindForge toolkit | Details later |
| Infrastructure Capability Development Grant for Insurers | S$30 million from the Financial Sector Development Fund to build investment teams and skills | Effective November 2 |
| Insurance capital framework changes | Lower capital charges for qualifying infrastructure and securitisation investments | Consultation until December 18, 2026 |
AI first, tokenisation next
MAS said the FFI aims to “accelerate the adoption of new financial technologies and catalyse innovation”. It will bring financial institutions, technology companies and researchers together to share practical experience, develop good practices for deploying agentic AI and strengthen the management of AI risks. MAS Managing Director Chia Der Jiun called it “a public-private platform” that will “anchor key capabilities in Singapore”. The institute will later expand into areas such as tokenisation.
Pushing insurers towards infrastructure
Announcing the insurance measures at the Singapore International Reinsurance Conference, Minister for National Development and MAS Deputy Chairman Chee Hong Tat said investments in infrastructure and long-term assets can match insurers’ long-dated liabilities. Under the proposals, rated infrastructure debt meeting credit quality requirements, and infrastructure investments with features such as long-term contracted revenues and limited demand risk, would attract lower capital charges. MAS will also recognise more credit rating agencies with infrastructure and securitisation expertise and work on standard disclosure templates.
Our calculation
- The institute began operations about five months after MAS announced its establishment in June.
- The consultation runs for about six and a half weeks, from November 2 to December 18.
What it means for India and Asia
MAS says the insurance measures will help “mobilise private capital for Asia’s infrastructure needs”, which matters for developing economies, including India, that need long-term finance for roads, power and ports. The AI institute adds to a race among Asian financial centres, including Hong Kong, to set rules and build tools for AI in finance, an area where Singapore also issued an AI-agent safety advisory this week, as we reported in our story on that advisory.
What to watch
- Responses to MAS’s capital framework consultation, due by December 18.
- The Singapore FinTech Festival later in November, where more FFI details may be announced.
- Which insurers apply for the infrastructure grant.
The Monetary Authority of Singapore building. Image: Terence Ong, CC BY 2.5, via Wikimedia Commons. Photo source · Licence
Sources
- Monetary Authority of Singapore: Future of Finance Institute commences operations, starting with AI in finance, November 3, 2026
- Monetary Authority of Singapore: MAS announces measures to support insurers’ investments in infrastructure and securitised assets, November 2, 2026
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