Speeches
Published Date: 08 November 2022

Remarks by Mr Leong Sing Chiong, Deputy Managing Director, Monetary Authority of Singapore, at the Official Opening Ceremony of the FM Global Centre on 8 November 2022

Thank you, Mr Malcolm Roberts,
Distinguished Guests,
Ladies and Gentlemen,

Good morning. It is a pleasure to join you at the official opening of the FM Global Centre.

2 The launch of the FM Global Centre is yet another significant milestone in FM Global’s long and rich journey with Singapore. 

  • Since 37 years ago, the Singapore office has grown significantly, and became the Asia Pacific Headquarters for FM Global in 2019. 
  • Today, it provides commercial property, risk advisory and engineering solutions to over 400 clients, across 36 markets in Singapore and the region.
  • The Global Centre is the second biggest centre, outside of the US.

3 The choice of Singapore to house the FM Global Centre is very timely, and is reflective of two key factors. 

4 Insurers are important partners in helping governments and businesses manage physical and transition risks. 

  • The FM Global Centre’s testing and research on how properties can be impacted by fire, floods and natural hazards at varying levels of intensity, can provide valuable data insights.
  • These data insights can support the development of ex-ante climate risk insurance solutions for businesses in the region. It goes to the heart of insurance solutions – which should increasingly focus on ex-ante risk reduction and loss prevention, beyond just ex-post risk financing.
  • The Centre will also provide hands-on loss prevention education to businesses and individuals, through interactive simulation labs and learning areas.

5 The insurance industry can also play an important role in empowering the development of the green economy in Asia. 

  • Singapore, for instance, as part of our energy decarbonisation, aims to quadruple solar energy deployment by 2025.
  • This shift towards renewable energy means that traditional insurance solutions for fossil fuel-based power generation need to adapt to meet the risk financing needs of renewables, or a hybrid energy mix of renewables and fossil-fuel based energy generation. 
  • We see more insurers in Singapore, including FM Global, offering insurance covers for solar, onshore wind power generation and batteries, protecting against the risk of fire, natural hazards, and machinery breakdown.

6 FM Global’s investments into deepening its capabilities in Singapore are well aligned with MAS’ Financial Industry Transformation Roadmap, or ITM 2025, launched early last month.

  • As a key risk financing centre for Asia, we want insurers here to develop deep, data-driven capabilities in risk assessment, risk quantification, risk advisory, and across key risk areas such as climate, cyber, health, and pandemic.

7 The insurance industry in Singapore will also need a deep talent pool to support its growth ambitions, increasingly comprising multi-disciplinary expertise, combining scientific, engineering, underwriting and business knowledge.

  • FM Global’s recently established research unit will collaborate with local institutions such as the NTU’s Earth Observatory, to share practical, scientific approaches to commercial property risk management. 
  • FM Global is also partnering with local universities to offer internship programmes in sustainability and climate resilience. 
  • And under ITM 2025, MAS has also set aside S$100 million in grant funding over the next five years to support capacity building, new financing solutions, and talent development.

8 In conclusion, Singapore’s insurance industry is well positioned to support the region’s growth and development through its strong risk management data and insights, ex-ante risk advisory and ex-post risk financing solutions, and stewardship of clients’ business models to build resilience. 

  • The opening of the FM Global Centre adds to the already strong capabilities in Singapore, and can bring even greater value to businesses in Singapore and across Asia. 
  • Congratulations to FM Global on the opening of the FM Global Centre, and I wish you every success. Thank you.
 

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