MAS to boost financing options for Asian growth companies

THE Monetary Authority of Singapore (MAS) on Monday said it would strengthen financing channels for next-generation Asian growth companies and build technology infrastructure to drive innovation.

The announcements came on the back of the recommendations of the Committee on the Future Economy (CFE).

Among other things, the MAS will simplify the authorisation process and regulatory framework for venture capital managers to support start-ups, as well as boost the role of finance companies as active providers of SME finance.

MAS will also study the introduction of dual class share structures to support the growth of high-tech companies.

In the area of innovation, MAS will develop an electronic marketplace for trade finance assets, working with a local fintech firm. It will promote as well electronic trading platforms for foreign exchange (FX), to sharpen Singapore's competitive edge as Asia's leading FX hub.

"The underlying thrust of MAS' various initiatives is to provide a conducive environment for innovation - which is critical for the future of financial services," said Ravi Menon, managing director of MAS.

"We do this through a judicious regulatory framework and enabling technology infrastructure. And even as we allow more risk-taking, we want to do so without compromising the safety of financial institutions and the stability of the financial system."