{
  "title": "Singapore: Banking on the Future",
  "publication": "IMF News, December 14, 2017",
  "sourceUrl": "https://www.imf.org/en/news/articles/2017/12/13/na121417-singapore-banking-on-the-future",
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  "summary": "<p> Singapore is fast becoming a global innovation hub. After years of rapid growth, the economy slowed due to an aging population and low productivity growth. In response, the country is embracing the digital economy.</p>",
  "publishDate": "2017-12-14",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Publication date: December 14, 2017\n- Main theme: Singapore is embracing the digital economy to counter slowing growth caused by an aging population and low productivity growth.\n- Context: Singapore is positioning itself as a global innovation hub and preparing to chair ASEAN in 2018."
    },
    {
      "heading": "Innovation importance and positioning",
      "content": "- Global Innovation Index ranking: Singapore ranked as the most innovative economy in Asia, and seventh in the world.\n- Drivers of innovation emphasized:\n  - Sound infrastructure and a conducive regulatory and business environment.\n  - Active research and development agenda to create new ideas, growth opportunities, and jobs.\n  - Regulatory and business reforms to be more conducive to innovation while preserving safety and stability."
    },
    {
      "heading": "Fintech strategy and regulatory approach",
      "content": "- Policy stance:\n  - Treat advances in automation and financial technologies (fintech) as opportunities to boost growth and skills, not simply disruptions.\n  - Avoid rushing to regulate fintech too tightly; allow innovation to unfold while monitoring risks.\n- Regulatory tools and measures:\n  - Regulatory sandbox launched in the financial sector to let firms test new products, technology, and business models in a controlled environment where some legal and regulatory requirements are suspended.\n  - Sandbox constraints: firms are restricted in the number of customers they can serve while in the sandbox; successful firms must meet standard regulatory requirements upon exit.\n  - Right-sized regulation: identify potential risks from fintech activities and design regulation accordingly so it does not kill innovation."
    },
    {
      "heading": "Specific fintech risk management examples",
      "content": "- Bitcoin and intermediaries:\n  - MAS does not regulate bitcoins per se.\n  - Bitcoin intermediaries and bitcoin ATM machines exist in Singapore.\n  - Regulatory action: place anti-money laundering and combating the financing of terrorism (AML/CFT) requirements on bitcoin intermediaries because some activities pose money laundering and terrorist-financing risks.\n- Crowdfunding:\n  - Distinction in regulatory treatment: donating money via crowdfunding is different from crowdfunding that promises a return tied to firm performance.\n  - If a crowdfunding arrangement promises returns tied to firm performance, the activity is effectively selling a security and is a regulated activity."
    },
    {
      "heading": "Skills, labor market policy, and inequality",
      "content": "- Innovation effects on inequality:\n  - Innovation creates demand for certain skills and disrupts other areas simultaneously.\n  - Government role: continually equip the workforce to prepare for disruptions.\n- Skills policy example:\n  - SkillsFuture: continuous re-skilling programs where the government provides training subsidies and professional conversion programs to prepare the labor force for evolving jobs.\n- Education challenge: the existing education system provides basic workforce skills but is increasingly less relevant given the rapid pace of technological change."
    },
    {
      "heading": "Regional economic and financial integration priorities for ASEAN (2018)",
      "content": "- Policy goals while chairing ASEAN in 2018:\n  - Boost productivity and competitiveness in the region.\n  - Prepare for the digital economy and promote financial inclusion.\n  - Strengthen and enhance e-commerce across the region to better position ASEAN as an investment destination.\n  - Use financial innovation to promote financial inclusion, especially to reach rural and under-banked populations in member countries like Indonesia and the Philippines."
    },
    {
      "heading": "IMF cooperation and capacity building priorities",
      "content": "- Existing cooperation: active collaboration through the IMF-Singapore Training Institute, which conducts programs to equip policymakers on macroeconomic and financial regulation policies.\n- Areas for expanded IMF support:\n  - Cyber security and cyber risk management: many financial regulators and policymakers in the region are nascent in building systems and capabilities to protect consumers.\n  - The IMF can act as a clearing house of capabilities by bringing expertise together to help countries manage cyber-related financial challenges.\n\nSource: IMF Country Focus — \"Singapore: Banking on the Future\" (December 14, 2017).\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Country Focus\n- Singapore and the IMF\n- 2017 Annual Meetings: Fintech Seminar\n- panel\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/12/13/na121417-singapore-banking-on-the-future"
    }
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    "Published: December 14, 2017",
    "Publication date: December 14, 2017",
    "Main theme: Singapore is embracing the digital economy to counter slowing growth caused by an aging population and low productivity growth.",
    "Context: Singapore is positioning itself as a global innovation hub and preparing to chair ASEAN in 2018.",
    "Global Innovation Index ranking: Singapore ranked as the most innovative economy in Asia, and seventh in the world.",
    "Drivers of innovation emphasized:",
    "Policy stance:",
    "Regulatory tools and measures:",
    "Bitcoin and intermediaries:",
    "Crowdfunding:",
    "Innovation effects on inequality:",
    "Skills policy example:",
    "Education challenge: the existing education system provides basic workforce skills but is increasingly less relevant given the rapid pace of technological change.",
    "Policy goals while chairing ASEAN in 2018:",
    "Existing cooperation: active collaboration through the IMF-Singapore Training Institute, which conducts programs to equip policymakers on macroeconomic and financial regulation policies.",
    "Areas for expanded IMF support:",
    "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[IMF Country Focus](https://www.imf.org/en/news/country-focus)",
    "[Singapore and the IMF](https://www.imf.org/en/Countries/SGP)",
    "[2017 Annual Meetings: Fintech Seminar](http://www.imf.org/external/POS_Meetings/SeminarDetails.aspx?SeminarId=269)",
    "[panel](https://www.imf.org/external/POS_Meetings/SeminarDetails.aspx?SeminarId=269)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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