The Monetary Authority of Singapore (MAS) has launched a SGD 30 million grant to build insurers’ infrastructure investment capabilities and opened a consultation on lower capital charges for qualifying infrastructure and securitisation investments. The Infrastructure Capability Development Grant for Insurers, funded through the Financial Sector Development Fund, will help cover the costs of establishing dedicated investment teams, training existing staff and engaging professional services to establish or expand infrastructure investment activities in Singapore. The proposed capital framework would give lower charges to rated infrastructure debt meeting specified credit quality and other qualifying requirements. Infrastructure equity and debt with additional safeguards would also qualify, including investments supported by contractual revenues, limited exposure to demand risk and counterparties with strong credit quality. Senior securitisation tranches rated investment grade would attract lower charges if they meet relevant simplicity, transparency and comparability criteria, or specified conditions such as portfolio diversification and liquidity safeguards. MAS will also recognise additional external credit assessment institutions with relevant infrastructure and securitisation expertise. Work with the industry on standardised disclosure templates, clearer assessment guidance and fund manager declarations is intended to help insurers determine whether infrastructure investments qualify for lower capital charges, while maintaining appropriate due diligence.

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