Mr Deputy Speaker, on behalf of Mr Gan Kim Yong, the Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), in his capacity as Minister-in-charge of the Monetary Authority of Singapore (“MAS”), I move that the Financial Services and Markets (Amendment) Bill 2026 be now read a second time.

Total Loss Absorbing Capacity

2. Sir, MAS’ regulatory regime aims to preserve the resilience and soundness of Singapore’s financial system. This includes ensuring that distressed financial institutions (“FIs”) can be resolved in a manner that preserves financial stability and maintains confidence in our financial system.

3. MAS is currently able to exercise resolution powers under the Financial Services and Markets Act 2022 to secure such outcomes, including bailing in subordinated creditors of a distressed FI to restore its solvency. To complement these powers, the Bill will allow MAS to impose Total Loss Absorbing Capacity (“TLAC”) requirements. Under this TLAC framework, Domestic Systemically Important Banks (“DSIBs”) in Singapore will be required to hold additional eligible loss-absorbing instruments and other financial resources. MAS has consulted the industry and public on key details of the TLAC framework, such as:

1. The level of TLAC that the DSIBs must maintain;
2. The types of eligible instruments that qualify as loss-absorbing instruments and the types of financial resources that may be treated as TLAC;
3. The information on its TLAC that DSIBs must disclose to the public; and
4. The implementation timeline.

4. Our DSIBs remain well-capitalised, well-managed, and continue to serve as strong anchors of Singapore’s financial system. The introduction of the TLAC framework forms part of MAS’ ongoing efforts to enhance Singapore’s resolution regime, so that in the unlikely event of a distressed DSIB, MAS will be able to act decisively to maintain financial stability.

Technical amendments to align with updated Financial Action Task Force Standards

5. The Bill also includes technical amendments to align Singapore’s framework on counter-proliferation financing with the updated Financial Action Task Force (“FATF”) Standards in this area. Currently, MAS’ anti-money laundering regime already requires FIs to put in place measures to mitigate the risks of financing the proliferation of weapons of mass destruction. Consequently, MAS’ supervisory programme over FIs similarly covers such risks. Nonetheless, to ensure technical alignment with updates to the FATF Standards and to sharpen clarity, the amendments will specifically provide that:

1. MAS’ supervision covers proliferation financing risks in addition to money laundering risks and terrorism financing risks; and
2. MAS may render assistance to domestic authorities and its counterpart foreign authorities in their supervision of proliferation financing risks.

6. In addition, arising from these changes, the Bill makes consequential and related amendments to other Acts administered by MAS.

Conclusion

7. Sir, the amendments in this Bill will strengthen Singapore’s resolution framework and ensure our laws are better aligned with international standards relating to countering proliferation financing. Together, they will enhance the resilience of our financial system and support Singapore’s position as a trusted international financial centre.

8. Mr Speaker, I beg to move.

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