Steering Singapore’s Asset Management Sector Through Global Uncertainty

Amid a rapidly changing global environment marked by heightened economic and geopolitical uncertainty, Singapore’s asset management industry is being called to strengthen its resilience and further support investors in navigating market volatility.

During a keynote address at a leading investment conference, the Managing Director of the Monetary Authority of Singapore outlined a clear roadmap that focuses on three critical areas: building more resilient markets, delivering investment products suited to diversification and retirement needs, and enhancing investor education. Core to resilient markets are robust transparency, solid market infrastructure, and the careful management of leverage to prevent destabilizing selloffs. The evolving landscape has underlined the importance of a diverse range of market participants, particularly in Singapore’s foreign exchange ecosystem, which has seen daily trading volumes soar above the US$1 trillion mark thanks to a thriving mix of platforms, banks, and asset managers. This diversity has been integral to maintaining stability and orderly market operations during times of stress.

The speech also emphasized the industry’s role in crafting investment products that help individuals build diversified portfolios for both growth and retirement purposes. Asset managers were reminded of the critical need for rigorous risk management and liquidity stress testing, especially as global regulators push for standards that align fund strategies with the realities of markets. Transparency and fair marketing practices were highlighted as essential for maintaining confidence and avoiding the destabilizing effects of sudden product withdrawals. In a significant development, regulators are actively consulting on opening up private market investments to retail investors, seeking to broaden choices while ensuring that the new offerings are both balanced and well-regulated for long-term sustainability.

Investor education remains a cornerstone of the regulatory approach, with ongoing collaboration between authorities and industry associations to bolster financial literacy among consumers. The conference also highlighted industry initiatives, such as the launch of a new climate investment handbook, and ongoing upskilling programs aimed at equipping professionals with the expertise needed for sustainable finance and responding to evolving market trends.

This strategic agenda underscores Singapore’s commitment to fostering a resilient, forward-looking asset management sector that can provide stability and innovation for investors, even as global headwinds persist.