The head of Singapore’s Monetary Authority emphasises asset managers’ vital role in the drive toward decarbonization and digitalization
In a recent address, Chia Der Jiun, head of the Monetary Authority of Singapore (MAS), highlighted the pivotal role of the asset management sector in driving decarbonization and digitalization initiatives. He emphasised the industry’s capacity to lead efforts in response to evolving global economic dynamics, particularly in addressing climate risks and advancing the digital transformation of financial assets.
Chia Der Jiun underscored the proactive stance of investment managers in driving positive change, considering their position at the forefront of financial innovation. He stressed the importance of aligning business strategies and investment decisions with emerging geopolitics, technological disruptions, and climate action trends.
In order to promote favourable results, he advises investment managers to match their plans with new developments in geopolitics, technology, and climate action. Asset managers are asked to assist the region’s shift to a low-carbon economy and direct investments towards sustainable growth projects, given the growing wealth in the Asia-Pacific region.
The MAS chief commended the asset management industry’s potential to promote sustainable investment practices and support economic development in the Asia-Pacific region. He encouraged asset managers to prioritise sustainable investment opportunities and contribute to the region’s decarbonization efforts while addressing environmental, social, and governance (ESG) considerations.
Chia Der Jiun highlighted the significant growth in wealth across the Asia-Pacific region, driven by an expanding middle-class population and rising affluence. He emphasised the role of asset managers in channelling investments towards sustainable growth initiatives, including infrastructure development, renewable energy projects, and ESG-focused funds.
The MAS has implemented guidelines and regulations to strengthen investor confidence in ESG funds and promote responsible investing practices. Chia Der Jiun cited recent initiatives such as ESG disclosure requirements and the issuance of a code of conduct for ESG rating agencies to enhance transparency and governance standards in the industry.
The MAS is collaborating with industry stakeholders to support the digital transformation of the asset management sector through initiatives like asset tokenization. Chia Der Jiun highlighted pilot programs led by prominent asset managers and technology firms to streamline fund issuance, distribution, and secondary market trading through tokenization and blockchain technology.
