Financial Sector Development Fund Annual Report
Financial Statement Highlights
$1,081 million
Total net assets of the fund
$235 million
Grant disbursements
Grant expenditure has decreased 33% (or $116m) from FY21, due partly to adjustments to the training schemes to reduce subsidy rates progressively. Subsidy levels had been temporarily enhanced during the pandemic period.
$3 million
Total investment income
Interest and dividend income were offset by losses from financial instruments measured at fair value and foreign exchange losses.
Key Initiatives
Talent Development
To foster a skilled and adaptable workforce, S$400 million in grant funding from FSDF has been set aside for the Talent and Leaders in Finance Programme over 2021 – 2025 to develop early career and mid-career professionals, as well as specialists and leaders for the financial sector.
- Build Capabilities, Strengthen Employability
Training support is provided to financial institutions and individuals to spur continuous upskilling and reskilling, to ensure that our workforce remains relevant to industry needs. Over 1,400 courses are available under the Financial Training Scheme (FTS) and IBF Standards Training Scheme (IBF-STS). In particular, following the launch of the Sustainable Finance Technical Skills and CompetenciesThe Sustainable Finance Technical Skills and Competencies (SF TSCs) are part of the IBF Skills Framework for Financial Services, which provides information on occupations and job roles, career pathways, and training programmes for skills upgrading and mastery. The SF TSCs cover a range of thematic and functional knowledge topics. last year, more than 80 sustainable finance courses are now being offered.
- Develop Local Talent Pipeline
The FSDF continued to support talent development especially in growth and priority areas, as well as build international and leadership capabilities.
With the enhanced funding under the Finance Associate Management Scheme (FAMS) for entry-level professionals to be trained in priority areas, we saw strong take-up for example in the area of technology, where more than 250 were groomed to take on technology roles. In addition, following enhancements to the International Postings Programme (iPOST) to provide greater funding for postings within Asia to build up capabilities to serve the region, about half of the postings supported were to Asia.
With the increased availability of shorter-term specialised modular courses, the take-up for the Financial Specialist Scholarship Programme (FSS) was observed to be low. The programme was thus discontinued in December 2022. Finance professionals keen to acquire specialist skills through courses can continue to seek support under the IBF-STS .
- Transform Workforce Planning and Development
Technology and Innovation
FSDF supports the development of a vibrant ecosystem for innovation through the Financial Sector Technology and Innovation (FSTI) Scheme.
Significant projects supported by the FSTI last year include:
- Industry-wide technological or utility infrastructure projects, such as ESG Registry, a blockchain-powered data platform aggregating industry-recognised ESG certifications and certified ESG data;
- Set-up of innovation labs by financial institutions, FinTechs and technology companies;
- Proof-of-Concept projects to experiment, develop and deploy innovative solutions using emerging technologies;
- Artificial Intelligence and Data Analytics (AIDA) projects to promote AIDA adoption amongst financial institutions and FinTech firms; and
- Regulatory Technology projects to enhance financial institutions’ risk management and compliance functions.
Financial Sector Activities
FSDF continued to support a wide range of initiatives across key areas of the financial sector over the past year.
- Debt capital market: FSDF supported new bond and insurance-linked securities issuances through the Global-Asia Bond Grant Scheme, the Sustainable Bond Grant Scheme (SBGS), and the Insurance-Linked Securities (ILS) Grant Scheme. The SBGS has been extended till 2028 to continue spurring growth in sustainable debt. Singapore’s development as a centre for climate risk financing investments will continue to be supported through the ILS grant scheme, which has been extended till 2025.
- Equity capital market: The Grant for Equity Market Singapore (GEMS) supported listings on the Singapore Exchange as well as training and research initiatives that enrich our public equity research ecosystem.
- Foreign exchange market: Key liquidity providers and multi-dealer platforms were supported under the Foreign Exchange E-Trading Ecosystem (FXET) Grant Scheme.
- Fund Domiciliation: Take up for the Variable Capital Companies Grant Scheme (VCCGS) remained strong in 2022. The VCCGS has been extended for a further two years till 2025, to continue encouraging VCC adoption by global and regional fund managers.
- Green Finance: The Sustainable Loan Grant Scheme (SLGS) supported corporates, particularly small and medium-sized enterprises, in accessing green financing. The SLGS has been extended till 2028 to support the growth of Singapore’s green and transition finance market.
Consumer Education
FSDF continued to support MoneySENSE’s consumer education initiatives. In the past year, 26 financial literacy workshops in primary and secondary schools, campus events and public seminars were organised to equip Singaporeans with financial knowledge and capabilities to make informed financial decisions in their daily lives.
