Wealthtech

MAS to Invest SG$6.9 Bil Into Private Equity and VCs To Spur Ecosystem Growth

The Monetary Authority of Singapore (MAS) announced the launch of a new US$5 billion (SG$6.91 billion) worth private market programme. MAS will be allocating this amount of its own funds as its investment portfolio in the private markets asset class.

The funds will be managed by global private equity and infrastructure fund managers who would like to expand to Singapore, or establish a more significant presence in the nation.

This was announced at the Singapore Fintech Festival happening right now by Peter Ong, member of the Monetary Authority of Singapore. He opened the Global Investor Summit with his keynote that said as such.

This move is said to build on MAS’ existing external fund manager programme which was created to anchor global asset managers in Singapore and catalyse more growth in Singapore.

This announcement is in relation to what Peter describes as a “scene [that] is evolving rapidly”. According to Peter, there are currently more than 220 private equity and venture capital managers located in Singapore, “and for the past 5 years, their assets under management grew at a CAGR of 28% to reach S$190 billion.”

“Through this US$5 billion programme, a stronger platform for growth finance and infrastructure development will emerge. It is complementary to the MATCH initiative that I spoke about and MAS’ collaboration with the industry to establish private market platforms to connect growth companies with investors.”

MATCH, or Meet ASEAN’s Talents and Champion, is a curated deal-making platform that exits to connect global capital and the ASEAN enterprise community.

The regulator also stated that they are working to develop an ecosystem of companies and organisations that will experiment with new ways to solve global problems. There are now 130 co-innovation incubations, venture builders and accelerators in Singapore now. Perhaps, this lends to Peter’s statement that companies are “staying private longer”.

“There is now a greater recognition among ASEAN companies that private capital is not simply just another source of funds, but also a form of ’smart capital’ that comes with technology, business know-how and networks useful for companies to grow and scale.”

Featured image via SG FinTech Festival