Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), alongside the Association of Banks in Singapore (ABS), announced on Wednesday plans to create a new entity aimed at consolidating the administration and governance of the country’s national payment schemes. This move is intended to bolster the growth, resilience, and innovation of Singapore’s payment infrastructure.
In a joint statement, MAS and ABS revealed that the new entity will collaborate with MAS to develop and implement a national payments strategy, ensuring the continued efficiency and security of payment systems.
MAS Managing Director Chia Der Jiun emphasized that centralizing the management of national payment schemes under one entity would enhance governance, leading to greater resilience and further innovation in the payments sector. “Consolidating the administrative and governance responsibilities of all national payment schemes will strengthen the governance of these schemes and contribute to greater payments resilience and innovation,” Chia said.
Currently, Singapore’s payment systems, including the Interbank GIRO System and PayNow, are managed by a mix of organizations, such as the Singapore Clearing House Association, ABS, MAS, and the Infocomm Media Development Authority. These systems play a key role in domestic and cross-border payments for both businesses and consumers.
The new entity will be overseen by senior representatives from both MAS and the financial services industry. While the operational rules and structure of the existing payment schemes will remain unchanged, further details regarding the entity’s name, governance framework, and board composition will be disclosed later this year, the regulators stated.
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