Singapore boosts governance as digitalization gathers steam

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Amid the growing trend of financial digitalization across Southeast Asia, Singapore has announced its intention to establish a new entity that will oversee all national payment schemes.

According to a press release, the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) will no longer regulate payment schemes exclusively and will instead float a new entity to consolidate and control national payment systems with an eye on efficiency and uniformity.

Managing director of MAS Chia Der Jiun disclosed in the statement that apart from uniformity, the push for consolidation is to improve resilience and foster innovation in the local payments ecosystem.

Singapore currently has eight national payment schemes controlled by several regulatory bodies. The Interbank Giro System, Singapore Dollar Cheque Clearing System, USD Cheque Clearing System, and FAST are operated by the Singapore Clearing House Association.

On the other hand, ABS oversees PayNow, Electronic Deferred Payment, and eGiro, while the MAS runs points on the Singapore Quick Response Code (SGQR). The combination of the payment schemes forms the foundation of Singapore’s payments industry, allowing cross-border transactions and lower transaction costs for consumers.

Details for the incoming entity are sparse at the moment, but the joint statement by MAS and ABS offers key insights. The new regulatory entity will be supervised by the central bank, with key players from the financial services forming the bulk of the team.

“Consolidating the administrative and governance responsibilities of all national payment schemes under a single entity will strengthen the governance of these schemes and contribute toward greater payment resilience and innovation,” said Jiun.

While consumers and enterprises are bracing for a new supervisory entity, the statement clarifies that the existing rules for Singapore’s national payment schemes will not change.

Although the joint statement does not mention digital assets, there are rumors that a unified governance structure may have far-reaching effects on the emerging asset class.

For starters, the consolidation of payment systems could trigger the wholesale integration of digital assets in mainstream payment systems in Singapore. Experts expect heightened MAS regulatory activity in the ecosystem after the incoming entity begins its supervisory functions.

Pundits argue that Singapore’s financial regulators will continue along the trail of preventing the speculative application of digital assets via the blanket ban on leverage and margin trading.

Digitalization gathering steam

Southeast Asia is not the only region experiencing a significant trend in digitalization. Experts said enterprises globally are increasingly adopting digitalization to enhance productivity and efficiency. This transformation is largely facilitated by advancements in artificial intelligence (AI) and blockchain technology.

According to the Jordan-based Association of Information and Communication Technology Companies (INTAJ), 70% of global firms are pursuing digital transformation strategies to gain an edge over their peers. INTAJ CEO Nidal Bitar disclosed the figures during the LEAP 2025 Conference in Saudi Arabia, noting a spike in emerging technology integration among enterprises.

Bitar, in his keynote address, highlighted that AI represents the most accessible opportunity for a variety of companies, confirming an increase in adoption metrics in recent years. AI integrations have spiked by nearly 300% over four years, with 2024 being the biggest growth year for the sector.

Citing data from McKinsey and Gartner, Bitar confirmed that the trend shows little to no signs of slowing down, with pioneering firms enjoying a raft of benefits. Early firms say their productivity metrics are up by 42%, while projected growth rates from AI integrations hover around 30%.

Aware of the downsides of AI integrations, surveyed respondents say employee retention is at an all-time high for firms that have integrated AI into their systems. However, this metric varies from industry to industry, with entry-level roles being the hardest hit by AI integrations.

To ride the wave of innovation, Bitar urges firms on the sidelines to make hefty investments in employee training, adding that digital upskilling is now a “key pillar” for digitalization. Rather than blindly integrating AI systems, the CEO calls for a “learn first” approach to ensure sustainable innovation.

Outside of AI, firms are turning to blockchain solutions for data management, tokenization, and smart contract-powered automation. Blockchain adoption has reached frenetic levels recently, but steep implementation costs and scalability affect their mainstream integration.

Among those supercharging blockchain adoption in enterprises is the Middle East, with the United Arab Emirates holding the regional lead, followed closely by Saudi Arabia and Jordan.

With AI, the Middle East is forging its path independent of Western-backed large-language models (LLMs), rolling out their localized models to capture cultural nuances. The region recently welcomed international investment to enhance government-backed digitalization initiatives.

Watch: Breaking down solutions to blockchain regulation hurdles