The Monetary Authority of Singapore (MAS) today announced new initiatives to support insurers in mobilising long-term capital for infrastructure and securitisation investments. These include an SGD30 million ($23.4 million) grant scheme to support insurers in building infrastructure investment capabilities and a more risk-sensitive insurance capital framework. The announcement was made by Chee Hong Tat, Minister for National Development and Deputy Chairman of MAS at the Singapore International Reinsurance Conference on 2 November 2026.

Investments in infrastructure and other long-term assets, including those accessed through securitisation structures, can complement insurers’ long-dated liabilities. As these markets and investment structures evolve, MAS is taking a more differentiated approach that better reflects their underlying risks, while maintaining sound prudential standards for insurers and protecting policyholders. MAS will also support insurers in deepening the expertise and investment capabilities in Singapore to originate, assess and manage such investments. Together, these measures will help strengthen Singapore’s infrastructure financing ecosystem and mobilise private capital for Asia’s infrastructure needs. They form part of the ongoing work of the Growth Capital Workgroup¹ to support the financing needs of companies in Singapore and the region.

SGD30 Million ($23.4 Million) to Build Infrastructure Investment Capabilities for Insurers

MAS will set aside SGD30 million ($23.4 million) under the Financial Sector Development Fund (FSDF) for an Infrastructure Capability Development Grant for Insurers, to support insurers in developing infrastructure investment capabilities in Singapore. The funding will help defray the costs of building dedicated investment teams, strengthening the skills of existing staff and engaging professional services to establish or expand infrastructure investment activities. The grant scheme takes effect today. Interested insurers can approach MAS for details of the grant scheme.

Proposed Enhancements to Insurance Capital Framework

MAS is consulting on a more risk-sensitive insurance capital framework to provide differentiated capital treatment for infrastructure and securitisation investments. The proposals are –

a) Rated infrastructure debt investments that meet specified credit quality and other qualifying requirements will attract lower capital charges;

b) Qualifying infrastructure equity and debt investments with additional risk-mitigating features, such as revenues supported by long-term contractual arrangements, limited exposure to demand risk and support from counterparties with strong credit quality, will qualify for lower capital charges; and

c) Senior investment-grade securitisation tranches that meet relevant criteria on simplicity, transparency and comparability, or specified conditions such as portfolio diversification and liquidity safeguards, will attract lower capital charges.

MAS invites interested parties to submit their views and comments on the proposed enhancements. The consultation paper [link] sets out further details. The consultation closes on 18 December 2026.

Recognising More External Credit Assessment Institutions

MAS will recognise more external credit assessment institutions with relevant expertise in infrastructure and securitisation issuances. Interested institutions that meet the criteria set out in Appendix 4I of MAS Notice 133 can write in to apply.

Facilitating Infrastructure Investment Assessments

MAS is also working with the industry to make it easier for insurers to determine whether infrastructure investments meet the qualifying criteria for lower capital charges. This includes developing standardised disclosure templates, clearer assessment guidance and fund-manager declarations. These will provide insurers with more consistent information and streamline the assessment process, while maintaining appropriate due diligence.

Taken together, these measures will help insurers in Singapore source, assess and manage investments aligned with their long-term obligations to policyholders, while supporting the development of Singapore’s infrastructure financing and securitisation ecosystem.

Re-disseminated by The Asian Banker