Thursday, 30 March 2023

MOF and MAS launch process to digitalise banker’s guarantees and insurance bonds

5 min read

The Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) today launched [email protected], a simple and secure digital process for businesses and individuals to provide a banker’s guarantee or insurance bond (collectively, “guarantee”) to government agencies within a day. It was jointly developed with the Association of Banks in Singapore (ABS)1 and in consultation with the General Insurance Association of Singapore (GIA).

 With [email protected], businesses and individuals will no longer need to apply for a paper guarantee from a financial institution (FI), collect it when it is ready, and deliver the guarantee to the government agency, to discharge their contractual or licensing obligations. Businesses and individuals can instead apply for an eGuarantee from over 20 participating FIs through their websites or email for direct submission to 17 government agencies (refer to Annex). More FIs and agencies are scheduled to come onboard [email protected] by end 2023.

FIs and government agencies will also benefit from this more streamlined and simpler workflow. [email protected] employs standardised texts which eliminate the need for each guarantee to undergo legal vetting. The eGuarantees are securely transmitted through the Singapore Customs’ Networked Trade Platform (NTP).

Mr Han Neng Hsiu, Deputy Secretary (Development), MOF, said, [email protected] is part of our digitalisation efforts to transform service delivery and reduce transaction costs. Our partnership with the financial industry has enabled us to create value for businesses and individuals.”

Mr Marcus Lim, Assistant Managing Director (Banking and Insurance), MAS, said, This is a win for both financial institutions and their customers. [email protected] facilitates greater efficiency in processing guarantees and reduces the operational risks associated with manual paper-based workflows.”

Mr Wee Ee Cheong, Chairman, ABS, and CEO of UOB, said, “Banks and our customers will benefit from more streamlined processes and greater efficiency thanks to [email protected] More importantly, we hope that the initiative will lead to greater acceptance of digital guarantees from all parties as we move towards a greener and more sustainable economy. ABS is proud to contribute to the successful launch of [email protected] together with the Ministry of Finance, the Monetary Authority of Singapore, and other government agencies.


Re-disseminated by The Asian Banker

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