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Singapore’s strong trade network and the signing of RCEP have deepened regional integration and boosted investor confidence. The hedge fund industry benefits from these developments, attracting significant inflows from global investors. Fund managers operating in Singapore are required to hold a Capital Markets Services (CMS) licence under MAS regulations.

Singapore continues to advance its sustainability agenda through initiatives like joining the First Movers Coalition and launching the Green Plan 2030. These efforts aim to cut emissions, promote clean technologies, and drive green transformation across industries. As businesses face increasing pressure to adopt sustainable practices, embracing ESG strategies is key to long-term resilience and success in a low-carbon future.

The RFMC regime has been officially repealed by MAS, with all fund managers now transitioning to the A/I LFMC framework. The change streamlines regulatory oversight and supports Singapore’s growth as a trusted global fund management centre.

The Monetary Authority of Singapore (MAS) regulates all payment service providers under the Payment Services Act (PSA). This unified licensing framework covers key activities such as e-money issuance, money transfer, and digital payment token services, ensuring safe and compliant operations within Singapore’s growing FinTech ecosystem.

Early in the year of 2019, the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 (“PSPM Act”) has come into force to safeguard the precious stones and precious metals dealers (PSMD) sector against money laundering/ terrorism financing (ML/TF) risks.

The rise of digitalisation in the financial sector has transformed how financial institutions operate — but it also heightens exposure to cyber threats. Following major global incidents such as the SolarWinds hack, the Monetary Authority of Singapore (MAS) revised its Technology Risk Management Guidelines in January 2021 to ensure stronger safeguards across the industry. Financial institutions must now assess technology risks, evaluate third-party vendors, and implement robust frameworks to protect client data and maintain system integrity.

Singapore’s well-developed infrastructure, political stability and sustainable economic growth are factors attracting inflows of foreign direct investment. This eventually results in a higher demand for capital market services (CMS). Singapore’s financial institutions (FIs) need to hold a CMS licence to conduct regulated business activities under the Securities and Futures Act (SFA).

To curb the proliferation of weapons of mass destruction (WMD), Singapore enforces strict export controls under the Strategic Goods (Control) Act (SGCA). The Act regulates the transfer, export, and brokering of strategic and dual-use goods to safeguard the global supply chain. In a recent enforcement case published by Singapore Customs, a company and its director were fined over S$250,000 for exporting strategic goods without a permit and submitting false declarations. Businesses are urged to implement strong internal controls and accurate trade declarations to ensure compliance and avoid severe penalties.

As sustainability takes centre stage, banks are under growing pressure to manage environmental risks and align with ESG principles. In Singapore, the Monetary Authority of Singapore (MAS) has introduced the Environmental Risk Management Guidelines and the Environmental Risk Questionnaire (ERQ) to help banks identify, assess, and mitigate climate-related risks. These tools not only strengthen banks’ resilience but also guide corporate clients in transitioning toward a greener, low-carbon economy.

Financial crimes like money laundering have heightened compliance risks for the PSMD sector. Under MinLaw’s AML/CFT regulations, all dealers must register, perform due diligence, and file cash transaction reports. Strengthening internal controls and staff awareness is key to preventing ML/TF violations and ensuring compliance.