Singapore’s Fintech Future: MAS Chief Chia Der Jiun Shares Vision at Singapore FinTech Festival

At this year’s Singapore FinTech Festival, Mr Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS), shared insights into Singapore’s fintech future in a lively fireside chat with Ms Manisha Tank, broadcaster and TV presenter.

Overall Vision: Community, Collaboration, Capabilities

Community: He shared the imporance of a vibrant and globally connected fintech community, exemplified by the Singapore FinTech Festival, which hosts over 900 speakers and draws tens of thousands from around the world. The launch of the Global Fintech Network (GFTN) also marks an ambitious step to deepen and expand this network worldwide, reinforcing Singapore’s role at the heart of a dynamic fintech ecosystem.

Collaboration: The vision for collaboration goes beyond single projects to forming powerful alliances that drive industry-wide solutions. By bringing together financial institutions, regulators, and policymakers through consortia, MAS is scaling efforts to tackle major challenges in areas like digital assets, sustainability, and AI, ensuring that innovation benefits the broader financial landscape.

Capabilities: MAS is committed to building foundational capabilities to support sustainable growth in fintech. This vision includes establishing fast, affordable payment systems, both domestically and across borders, as well as advancing asset tokenization, AI, and sustainability initiatives. These efforts are part of a long-term strategy to equip Singapore’s fintech sector with the tools needed to thrive in a rapidly evolving digital economy.

Here are more highlights and notable takeaways from the conversation:

1. Making Payments Faster and More Convenient

Singapore’s domestic payments scene has transformed, with consumers now using QR codes and platforms like PayNow for seamless transactions. However, as Mr Chia said, there’s room for improvement. While adoption rates are high, not all merchants can accept payments across different payment schemes. MAS, in partnership with NETS Group and Liquid Group, is working to ensure that merchants can accept payments from any scheme, creating a more inclusive experience for consumers.

On the cross-border side, MAS is spearheading Project Nexus—a multilateral framework aimed at making international payments as easy as domestic ones. “Project Nexus,” Mr Chia noted, “is a game changer,” allowing consumers to make low-cost, fast payments across ASEAN countries without the complications of bilateral connections. This effort is set to transform how people handle payments when they travel or shop internationally.

2. The Rise of Tokenized Assets for All

Tokenization may sound technical, but it’s set to make investing simpler and faster for consumers. Essentially, tokenization turns assets like funds or securities into digital tokens, which can be traded more efficiently. Through Project Guardian, MAS has piloted tokenization with various assets, demonstrating its ability to reduce costs and speed up transactions. For consumers, this development promises faster, more affordable ways to invest and manage their portfolios.

Yet, before tokenization becomes widely accessible, MAS is addressing challenges like standardization and regulatory compliance. By establishing clear frameworks—such as those for stablecoins, a type of digital currency linked to stable assets—MAS aims to make digital asset transactions secure and reliable. Mr Chia’s remarks underscored MAS’s commitment to building a safe, well-regulated digital asset ecosystem.

3. Embracing Generative AI in Finance, Responsibly

Generative AI, a technology that’s reshaping industries, holds great potential in finance. But MAS is taking a balanced approach to integrating it. Instead of jumping into regulations, MAS initiated Project MindForge, an industry consortium that’s exploring AI’s benefits and risks together with industry experts. Mr Chia said this collaborative approach helps MAS understand potential risks like data leakage and fraud before setting policies.

MAS’s goal is to create standards for responsible AI use that prioritize consumer security, transparency, and accuracy. This cautious yet forward-thinking approach reassures consumers that MAS is dedicated to maximizing AI’s benefits without compromising safety​.

4. Driving a Sustainable Finance Movement

With climate change increasingly in focus, MAS’s commitment to sustainable finance is both timely and relevant. Mr Chia said that finance can play a critical role in supporting a greener future. Singapore’s rising carbon tax reflects this commitment, setting a regional example that could inspire others.

For consumers, MAS’s initiatives mean more opportunities to make eco-friendly financial choices. Through the Greenprint initiative, MAS is simplifying sustainability data collection, helping consumers and businesses alike to understand their environmental impact. This initiative makes it easier for smaller companies to track and report on their green practices, giving consumers the information they need to make environmentally conscious decisions about where to put their money​

5. Preparing for Quantum Computing’s Future Impact

Though quantum computing is still under development, its future potential to revolutionize industries, including finance, is enormous. Mr Chia said MAS’s early efforts in post-quantum encryption and quantum key distribution to prepare for the security challenges that quantum computing may bring. The concern? Quantum computers could eventually be powerful enough to breach today’s encryption, posing risks to financial data.

MAS’s proactive approach to quantum security reassures consumers that the authority is committed to protecting the financial system against emerging technological risks, even those still on the horizon​.

Getting a Feel of The Latest Ideas

The session wrapped up with Mr Chia expressing his enthusiasm to do a walk around and learn from the festival. As he explained, “I want to get a good feel about what the latest ideas are and what people are seeing and pushing and, you know, dreaming of. So, I think that’s important. I don’t have a particular area that I’m going to look at. I’m going to be very open minded, and I’m here to learn and absorb.”