Singapore’s financial regulator has partnered members of the financial industry to set up the Singapore Sustainable Finance Association (SSFA), the first cross-sectoral industry body to support the development of Singapore as a leading global centre for sustainable finance.
Launched on Jan 24, SSFA will be co-chaired in its first year by Deborah Ho, country head of Singapore and regional head of Southeast Asia at BlackRock; and Wong Kee Joo, chief executive officer of HSBC Singapore.
The standing members of the executive committee are Gillian Tan, assistant managing director (development and international) and chief sustainability officer at the Monetary Authority of Singapore (MAS); and Ong-Ang Ai Boon, director of the Association of Banks in Singapore (ABS).
SSFA aims to drive the development of Singapore’s sustainable finance ecosystem and promote best sustainable finance practices. It will also facilitate collaboration between the financial and non-financial sectors for sustainable finance to support the low-carbon transition and sustainable economic growth of Singapore and the region.
In addition, SSFA aims to bolster Singapore as an international thought leader in sustainable finance, and support the deepening of sustainable finance capabilities for the industry.
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The SSFA was first announced in June 2023 by President Tharman Shanmugaratnam, then Senior Minister and chairman of MAS. ABS led the coordination and launch of the SSFA.
In its first executive committee meeting today, SSFA formalised its governance structure and laid out its work plan for the year, which includes the establishment of workstreams to focus on five key areas: carbon markets, transition finance, blended finance, taxonomy, and natural capital and biodiversity.
SSFA will be supported by a dedicated Secretariat team, led by Kavitha Menon, director of SSFA. According to Menon, SSFA will begin its work by 2Q2024.
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The establishment of the SSFA marks a pivotal moment in Singapore's sustainable finance journey, says MAS’s Tan. “The SSFA will build on the groundbreaking work of the Green Finance Industry Taskforce and galvanise industry players and stakeholders in the broader ecosystem to shape the future of sustainable finance.”
Tan adds: “The MAS looks forward to working closely with the SSFA in developing Singapore as a resilient, innovative and trusted centre for sustainable finance.”
In addition, SSFA will work in partnership with other industry associations and academic institutions to drive initiatives in sustainable finance. At launch, SSFA’s partners include the Singapore Business Federation (SBF), the Singapore FinTech Association (SFA) and the Investment Management Association of Singapore (IMAS), among others.
Aside from MAS and ABS, SSFA launched with 19 other exco members. These financial institutions include DBS, OCBC, Prudential, Schroders, SGX, Standard Chartered, Temasek, UBS, UOB, Climate Impact X and Great Eastern Life, among others.
SSFA is recruiting members, and welcomes organisations that are keen to play a pivotal role in advancing sustainable finance practices in Singapore and beyond. The annual membership fee is $5,000.
Upskilling in the financial industry
MAS has embarked on a “jobs transformation map” to study the impact of sustainability on Singapore’s financial sector workforce, says Chia Der Jiun, MAS’s managing director, in his keynote address at the launch event.
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Conducted together with the Institute of Banking and Finance (IBF) and Workforce Singapore, preliminary findings suggest that most of the jobs must be “augmented by upskilling” to support changes in regulations, products and processes to better serve their clients, says Chia, who succeeded Ravi Menon at the start of the year.
“In addition, new and highly specialised roles, such as sustainability risk analysts, will be created,” adds Chia.
MAS will share the findings in April, alongside key initiatives designed with IBF to support the sector’s upskilling.
Photos: SSFA
