MAS Introduces S$30 Million Infrastructure Investment Grant for Insurers
Singapore's Monetary Authority of Singapore (MAS) has announced a S$30 million grant to help insurers invest in infrastructure and securitised assets. The move also comes with proposed changes to insurance capital requirements, aimed at making certain investments more attractive to insurers.
The announcement was made on 2 November 2026 by Chee Hong Tat, Minister for National Development and Deputy Chairman of MAS, at the Singapore International Reinsurance Conference.
The grant will be provided through the Financial Sector Development Fund (FSDF). It is designed to help insurance companies build the teams and skills needed to take part in infrastructure investments. This includes support for setting up dedicated investment teams, training existing employees and hiring professional service providers.
The scheme takes effect on 2 November 2026. Insurers interested in applying can approach MAS for further details.
Changes proposed for infrastructure investments
Alongside the grant, MAS has opened a consultation on changes to its insurance capital framework.
One of the proposals concerns infrastructure debt. Investments that meet specific credit quality requirements could receive lower capital charges. This would also apply to certain infrastructure equity and debt investments with features that help reduce investment risks.
These may include projects backed by long-term contractual revenue arrangements, limited exposure to demand risk and financially strong counterparties.
MAS is also looking at changes to the treatment of securitised assets. Senior investment-grade tranches that meet requirements for simplicity, transparency and comparability could qualify for lower capital charges. Other conditions may apply, including portfolio diversification and liquidity safeguards.
Insurers and other interested parties can submit feedback on the proposals until 18 December 2026.
More support for investment assessments
MAS is also planning to recognise additional external credit assessment institutions with experience in infrastructure and securitisation. This could give insurers access to more specialised assessments when reviewing potential investments.
Work is also underway with industry participants on standardised disclosure templates and clearer assessment guidance. Fund-manager declarations are another part of the planned measures.The purpose of these steps is to assist insurers in determining whether an investment qualifies for lower capital requirements.
The announcement connects financial assistance and proposed legal reforms. While the financial assist model aims to develop investment capabilities, the capital framework public consultation is concerned with the way insurers can treat eligible assets. Hence, both initiatives aim at promoting greater involvement of insurance companies in the field of infrastructure financing with the use of mechanisms aimed at protecting the interests of insured parties.
