Sustainable finance remains a priority for MAS despite worldwide challenges
The Monetary Authority of Singapore (MAS) is leading the charge in climate resilience and sustainable growth, positioning Singapore as a green finance frontrunner in Asia.
In a bold move, MAS is strengthening the climate resilience of its foreign reserves portfolio. The central bank has also developed a roadmap to manage its Climate Transition Programme (CTP) equities portfolios against climate indices.
MAS's commitment to a sustainable future is evident in its ambitious policy moves and regulatory upgrades. In 2024, MAS released a sustainability report detailing these initiatives for the years 2024/2025. One of the key highlights is the launch of the IFRS Sustainability Disclosure Standards for Singapore stock exchange-listed issuers, which is being rolled out using a phased approach.
To further support the green transition, MAS has launched an industrial transformation infrastructure debt programme with a $500mn pledge in concessional capital from the Singapore government. This programme is expected to generate significant economic opportunities, with the Asian Development Bank estimating that manufacturing related to renewable energy in Southeast Asia could generate up to US$100bn in annual revenue by 2030 and create up to 6 million jobs by 2050.
MAS is also collaborating with international partners to drive sustainable finance. In collaboration with China's central bank and the EU, MAS published a multi-jurisdiction common ground taxonomy for identifying green activities across major economies. This collaboration is a testament to MAS's global leadership in sustainable finance.
To ensure the finance sector is equipped for the green transition, MAS, in partnership with the Institute of Banking and Finance, has upskilled a significant cohort of finance professionals. At least 4100 finance professionals have been trained for the green transition through IBF-accredited training since the launch of the sustainable finance jobs transformation map.
However, the road to a sustainable future is not without challenges. Gan Kim Yong, the MAS chairman, warned that climate inaction could slash the Asia Pacific's GDP by as much as 41% by the end of the century. Despite this, MAS is taking proactive steps in the face of global headwinds affecting climate action, including implementing new disclosure standards and sectoral innovation.
While other regulators in the region are reportedly considering delaying the implementation of similar standards in light of the EU's omnibus process, MAS remains steadfast in its commitment to anchoring Singapore's financial system in climate resilience and sustainable growth. The MAS chief stated that continued collaboration will position them well to strengthen the financial sector's resilience and build a sustainable future for Singapore and the region.
The MAS's efforts in strengthening climate resilience and promoting sustainable growth are not only beneficial for Singapore but also for the wider Asia region. The International Platform on Sustainable Finance (IPSF), developed and published in 2024, in collaboration with the EU Central Bank and the Central Bank of China, is a testament to this. This jointly harmonized governance framework for green financial transactions is a significant step towards a sustainable future for Asia.
The MAS's sustainability report was last updated on July 21, 2025, reflecting the ongoing efforts and progress in Singapore's journey towards a sustainable and resilient future.
