Singapore: MAS announces measures to support insurers’ investments in infrastructure and securitised assets

MAS will set aside S$30m 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 has come into effect from 2 November and 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 by 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.