1、July 2024Driving Paymentsof TomorrowHow Digital Economy Trends are Shapingthe Future of Payments in Singapore A Report ByKnowledge PartnerAbout this ReportThis special report by the SIIA provides a landscape view of the key digital economy trends and considers the payments sector in the broader cont

2、ext of the wider digital economy.The SIIA conducted a series of roundtables and interviews to garner insights from stakeholders in the payments ecosystem between April to July 2024.The report hopes to provide a more nuanced outlook on the future of payments,highlighting opportunities for businesses

3、which are directly or indirectly involved in the payments space.1.Digitalising the Wider Supply Chain Ecosystem2.Developing Products and Frameworks that are Secure-by-Design3.Nudging Secure and Safe Behaviour4.Enhancing the Quality and Availability of Sustainability Data5.Strengthening Public-Privat

4、e Partnerships(PPPs)6.Ensuring Regulation Keeps Pace with Innovation7.Cultivating Talent PoolAn expanded version with more details can be found in the last chapter of this report.1.ExecutiveSummarySoutheast Asias digital economy has experienced exponential growth over the last decade and is on track

5、 to be valued at US$600 billion by 2030.1 This rapid growth has fundamentally altered commerce,business operations and consumer behaviour,leading to significant transformations in the payments sector.This special report provides a landscape view of the key digital economy themes in Singapore and con

6、siders how they are shaping the future of payments.Singapore serves as an interesting case study due to the countrys rapid digitalisation and the high rate of cashless payments adoption in Southeast Asia.The five key themes that have emerged from our research are:Inclusive Digital Society and Econom

7、y;Secure Digital Ecosystem;Digital Sustainability;Singapore as a Hub for Innovation,Technology and Enterprise and Encouraging Regional Growth and Connectivity.In considering the evolution of payments in the broader context of the digital economy,this report hopes to provide a more holistic view on t

8、he future of payments,highlighting key trends,opportunities and risks that stakeholders will need to contend with in the next few years.It also examines how these trends are interacting with one another,and in doing so,identifies opportunities for stakeholders to collaborate and achieve some of thes

9、e goals.Finally,considering the importance of secure and safe digital payments in enabling transactions across multiple sectors and industries in the digital economy,this report concludes with recommendations for key ecosystem stakeholders on how to capture opportunities in the changing payment land

10、scape,aligning with Singapores own goals in becoming a Smart Nation.This is a shortened summary of key recommendations identified by the SIIA to promote a safe,secure,and inclusive financial ecosystem:1Table of Contents1.ExecutiveSummary12.Introduction3a.Role of Payments in the Digital Economy 3i.Ev

11、olution of Payments and the Broader Financial Sector in Singapore 3b.Looking Ahead:Shaping the Payments Landscape 63.Framing of Key Themes 7a.Inclusive Digital Society and Economy 7b.Secure Digital Ecosystem 11c.Digital Sustainability 15d.A Hub for Innovation,Technology and Enterprise 18e.Encouragin

12、g Regional Growth and Connectivity 234.PolicyRecommendations275.Conclusion:CollectivelyShapingOurDigitalFuture296.Appendix:ParticipatingOrganisations307.References 31Authorship and AcknowledgementsThis report was authored by Ms.Janessa Kong(Senior Policy Analyst)and edited by Ms.Rohini Nambiar(Senio

13、r Assistant Director,Policy Programmes).Contributions were made by Ms.Stephanie Heng(Senior Policy Analyst),Ms.Anoushka Rao(Policy Intern)and Mr.Pranav Harish(Policy Intern).This report was directed by SIIA Chairman,Associate Professor Simon Tay.All views expressed in the report are those of the aut

14、hors,unless otherwise credited.We would like to thank our knowledge partner,Visa,for sponsoring the report.We appreciate the insights shared from the various stakeholders we engaged with for this report in the form of roundtable discussions and stakeholder interviews.A full list of the participating

15、 organisations for our research interviews and roundtables is listed in the appendix.The reports contents do not necessarily reflect the views or stated policies of the above contributors.22.IntroductionThe digital economy2 has seen exponential growth since the onset of the COVID-19 pandemic.It is a

16、n area primed for further growth,as reflected by the increasing momentum amongst governments and businesses towards digital transformation,integration,and innovation.The Association of Southeast Asian Nations(ASEAN),for instance,is negotiating the ASEAN Digital Economy Framework Agreement(DEFA).This

17、 agreement is projected to unlock close to US$2 trillion in value by 2030.3Singapore is no exception.As a hub for innovation and digitalisation,Singapore is leading in broader digital transformations of government,businesses,and society across various sectors.This has accelerated the growth of its d

18、igital economy,where its value has nearly doubled between 2017 and 2022,growing from 13%of the countrys nominal GDP to 17.3%in 2022.4 The development of Singapores digital economy has brought about new opportunities for growth and innovation in sectors such as e-commerce,digital payments and financi

19、al technology(FinTech).i.EvolutionofPaymentsandtheBroaderFinancialSectorinSingaporeIn Singapore,the payments industry is anticipated to have a compound annual growth rate(CAGR)of 7.5%between 2022 and 2027.5 This growth is reflective of the broader evolution of the payments industry,where the move to

20、 prepare Singapores transition to a cashless society began in the 1970s.As a result,Singapore has emerged at the forefront of cashless payments adoption in Southeast Asia,with card and wallet payment methods being more preferred than cash.a.Role of Payments in the Digital EconomyDigital payments are

21、 integral to the continued expansion of the digital economy as it facilitates increased efficiency,connectivity and innovation.By streamlining and simplifying transactions,digital payments enable both consumers and businesses to conduct and process transactions with less effort and costs,acceleratin

22、g economic activities and supporting faster growth.Digital payments systems also transcend geographical boundaries,enabling businesses to expand and conduct cross-border transactions conveniently and efficiently.The interoperability,security,speed and integrated nature of digital payments support gr

23、eater cost-savings,convenience and growth.It,therefore,has the potential to greatly enhance livelihoods across a wide variety of sectors.BreakdownofPaymentMethodsUsageinSingaporein20246Source:Visa Consumer Payment Attitudes Study 2024-Singapore reportCard(91%)Wallet(72%)Cash(66%)Contactless(Credit/D

24、ebit)71%Card Swipe/Insert41%Online Payment(Credit/Debit)62%Stored-Value Card31%Mobile Contactless53%QR Payment55%Mobile Wallet by Entering Mobile#/Merchant ID31%Mobile Wallet by Online/In-App Payment43%Cash/Cash on Delivery66%3EvolutionofPaymentsinSingaporeReducing Reliance on Cash and Cheques7andIn

25、creasingCost-EfficiencyofEverydayPayments81971:Formation of the Monetary Authority of Singapore(MAS)adopts dual role of central bank and financial regulator of the financial services sector1973:Establishment of the Association of Banks in Singapore(ABS)non-profit organisation(NPO)which represents th

26、e interests of commercial and investment banking community1984:Introduction of General Interbank Recurring Order(GIRO)aims to help billing organisations reduce the social cost of customers paying for utilities and other bills in cash.Residents were encouraged to open bank accounts for their pay to b

27、e credited via GIRO1986:Launch of Network for Electronic Transfers(NETS)a debit network that facilitated the adoption of Electronic Funds Transfer(EFT)at Point-of-Sale(POS)or EFTPOS networks.This enabled consumers to make payments across a range of use cases through ATM cards linked to bank accounts

28、1996:Introduction of EMV chip specifications-enabled global interoperability of chip card transactions1997:Organisational restructuring of MAS formation of Financial Sector Promotion Department,where MAS took on the additional role of a market developerThe role of MAS as a central bank,financial reg

29、ulator and subsequently market developer was pivotal in establishing a central authority that could regulate and promote the financial services sector in Singapore.With the ABS,the MAS sought to establish the foundation for a cashless society by reducing reliance on cash and cheques.This led to solu

30、tions which increased the cost-efficiency of everyday payments,including the introduction of GIRO and NETS for interbank merchant payments.1970-2000sSignificantInnovationinPaymentTechnologiesandSolutions92002:Contactless stored value in EZ-link cards for public transit applicable for MRT,Bus and Ele

31、ctronic Road Payment(ERP)charges2004:The Infocomm Development Authority(IDA)commits S$12 million to develop Radio Frequency Identification(RFID)technology2007 to early 2010s:Introduction of Mobile Banking features in Singapores three largest banks2012:Launch of mobile payment services using Near Fie

32、ld Communication(NFC)technology2014:Launch of Fast and Secure Transfers(FAST)and the Smart Nation InitiativeThe early 2000s saw significant innovation in payment technologies and solutions driven by the Singapore government and local banks.With the intention to support e-payment adoption across diff

33、erent sectors,the government introduced contactless stored value in EZ-link cards and invested in RFID technology.This was complemented by the introduction of mobile banking features and mobile services enabled by NFC technology which spurred mobile payment adoption.The launch of FAST by the ABS in

34、2014 was a significant milestone in Singapores e-payments journey as it facilitated the near-immediate transfer of funds from participating banks and non-bank financial institutions(NFIs)in Singapore.The launch of the Smart Nation Initiative in the same year further reiterated the governments commit

35、ment to creating a digital-first nation.Early 2000s-2010s4The late 2010s was marked by increased efforts to integrate domestic systems into cohesive platforms.PayNow was introduced by ABS in 2017 as an overlay service to FAST,requiring only the recipients mobile number,Singapore National Registratio

36、n Identity Card(NRIC)/Foreign Identification Number(FIN),or Virtual Payment Address(VPA)to facilitate a transfer.A year later,the Singapore Quick Response Code(SGQR)was launched,making QR payments seamless and convenient for both consumers and businesses.In 2019,the government further streamlined re

37、gulatory requirements for various payments services with the passing of the new Payment Services Act,and launched InvoiceNow,a nationwide e-invoicing network that enables companies to process invoices in a more efficient manner.IntegratingDomesticSystems:SteppingUpEffortstoEstablishE-PaymentsRoadmap

38、102015:Introduction of Financial Sector Technology and Innovation(FSTI)scheme-MAS commits S$225 million to FinTech over the next 5 years2016:Mobile phones compatible with NFC can be used for public transportation2017:Launch of PayNow,Unified POS and Industry Transformation Maps(ITMs)2018:Launch of P

39、ayNow Corporate,development of Singapore Quick Response Code(SGQR)standard,and NETS begins offering interoperable e-payment solution2019:Development of the Payment Services Act(PSA)-streamlines regulatory requirements for various payment services and InvoiceNow-nationwide e-invoicing networkLate 201

40、0sSustainedDemandforDigitalPaymentsDrivenbyCOVID-19112020:Accelerated growth of FAST payments and MAS commits another S$250 million over three years under FSTI 2.0 to speed up technology adoption and innovation-driven growth in the financial sectorWhile the shift towards digital payments was already

41、 gaining traction,its growth and uptake accelerated tremendously during the COVID-19 pandemic.Adopting digital tools out of necessity during periods of lockdown resulted in a change of consumption habits,including the move to shop online.12 As a result,FAST payments in 2020 grew by approximately 80%

42、,with transaction volumes increasing by 60%.2020ConnectingDomesticPaymentsSystems132021:Opening FAST to non-bank financial institutions(NFI);Exploring cross-border payment linkages Bilateral:Singapore-Thailand Pilot,Singapore-Philippines Multilateral:Project Nexus2023-2024:Expanding on cross-border

43、bilateral payments with Malaysia,Indonesia and India;Project Nexus to commence live implementation after successful proof-of-conceptIn recent years,a large focus for Singapore has been facilitating greater convenience and access in retail cross-border payments.After a successful pilot which connecte

44、d domestic real time payment(RTP)systems with Thailand,Singapore has since established multiple bilateral linkages with different countries.This has been followed by efforts to explore the potential of a multilateral solution which is more efficient and scalable.2021-Present Day5b.Looking Ahead:Shap

45、ing the Payments LandscapeEnabled by new technologies,processes and solutions,the digital payments landscape has evolved tremendously.From our research,we have identified three key trends in Singapores payments landscape.RiseofNewSolutionsandPlayersWith the advancement of technology comes the rise o

46、f new solutions and players in Singapores digital payments space.Startups and fintech companies are introducing various innovative payment technologies such as blockchain-based transactions and biometric authentication.This momentum towards more innovative methods of conducting and processing paymen

47、ts not only improves efficiency,but also addresses issues related to high transaction costs and slow processing times that are characteristic of previous,more traditional,payment methods.By generating novel solutions and introducing new players into this space,the development of digital payment syst

48、ems is accelerated through the expansion of choice,improvement of service quality and lowered barriers to entry for users.Disaggregated and DiverseThe diverse nature of the payments ecosystem arises from a variety of payment providers,each offering specialised services catering to differing consumer

49、 needs and preferences.For instance,there has been a rise of a diversity of non-traditional payment methods such as Central Bank Digital Currencies(CBDCs),Digital Wallets and Buy Now Pay Later(BNPL).The diversity of payment providers necessitates greater interoperability and integration efforts to e

50、nsure seamless payment experiences across different platforms and across borders.This further drives the development of digital payments in Singapore and the region.The digital payment infrastructure has also become more disaggregated.While the payments landscape was previously centralised,processes

51、 today are digitalised and segmented.Different parts of the payments process are being targeted by fintechs,allowing them to dedicate more resources to innovation and hone in on their specific niche.Collaboration,NotCompetitionThere is a common understanding that collaboration is pivotal towards sha

52、ping the continued advancement of digital payment systems and the broader digital ecosystem.Industry stakeholders such as financial institutions,government bodies and fintech startups have continued to push ahead with a diversity of initiatives that are collaborative in nature.These partnerships not

53、 only enhance user convenience and experience but also make digital payments more accessible for businesses through the support from diverse stakeholders.Partnerships between various actors are therefore crucial to ensure that Singapore continues to foster and create more secure,innovative and effic

54、ient digital payment solutions.63.Framing of Key Themesa.Inclusive Digital Society and EconomySingapore has emphasised the importance of building an inclusive digital economy and society in becoming a Smart Nation.This means ensuring that all Singaporeans are able to benefit from digitalisation.14 I

55、n identifying digital inclusion as a key policy goal,government initiatives have enabled significant progress in increasing digital access,equipping individuals with essential digital skills and encouraging favourable perceptions towards embracing and using digital technologies.15The government has

56、also developed specific initiatives to help small and medium enterprises(SMEs)adopt digital tools and benefit from ongoing digitalisation.SMEs form the backbone of Singapores economy and play a critical role in building a digital society.Various initiatives like SMEs Go Digital and Chief Technologic

57、al Officer as-a-service by the Infocomm Media Development Authority(IMDA)have helped SMEs adopt digital solutions and build capabilities to capture opportunities in the digital economy.Impact of Digital Payments on Financial InclusionAs the financial services sector undergoes large scale digital tra

58、nsformation,the links between digital and financial inclusion have become increasingly prominent.The digitalisation of financial services and growing prominence of a cashless economy will require businesses and consumers to be well-equipped with relevant skills to access and utilise these services.T

59、he government has enabled financial inclusion by establishing a strong foundation for the adoption of digital financial services(DFS).16 Efforts to strengthen online connectivity,raise financial literacy and increase the ease of adopting DFS have resulted in a 98%bank account penetration rate amongs

60、t adults since 2020.17While cards remain the preferred payment method among businesses18 and consumers,19 the rise of new payment service providers(PSPs)and fintechs have provided businesses and consumers with more options,including cheaper and more convenient ways to pay.The emergence of Buy Now Pa

61、y Later(BNPL)services,for example,provides a line of interest-free micro-credit for consumers which traditional financial institutions are unable to issue.Hence,equipping Singaporeans to utilise DFS for their everyday needs will be crucial to ensure financial inclusion.ChangingOperatingLandscapeOngo

62、ing changes in the digital economy landscape will pose new threats to inclusion.Technological advancements have enabled the emergence of new business models and transformed current ones,while the ubiquity of digital platforms has blurred the lines between the roles of business and consumer.7New Tech

63、nologies:The rise of new technologies like Artificial Intelligence(AI),Machine Learning(ML)and blockchain presents opportunities for businesses to increase operational efficiencies and bolster cybersecurity.However,many SMEs in Singapore lack the resources and know-how to leverage on these technolog

64、ies,while workers lack advanced digital skills to take up emerging job opportunities.In Singapores Financial Services Industry,disruptive technological skills were found to be lower than the global average,indicating a skills gap in the industry.20ChangingBusinessModels:The use of cloud computing,ri

65、se of digital platform models,super applications and social commerce have significantly changed the way businesses operate.While these models provide different alternatives for businesses to engage consumers,they are similar in their need to store and use data online.The move from physical storage s

66、ystems to digital ones have presented new risks for businesses and consumers,including exposure to a wider range of cyberthreats.GrowthofMicro-Sellers:As customer-to-customer(C2C)and social commerce grows,the lines defining traditional businesses and consumers are blurring.In a marketplace where ind

67、ividuals can be both buyers and sellers,individuals must be well-equipped to access different payment methods and to understand potential security risks.With e-commerce scams on the rise in Singapore,an online ecosystem where buyers and sellers can transact safely and securely is crucial.211238 Crea

68、tinganEnablingEnvironmentforUsingDigitalPaymentsTo ensure inclusive growth in the long run,the public and private sector will need to collaborate to address pain points for businesses and consumers in adapting to these new developments.This is especially important for SMEs,which comprise the majorit

69、y of businesses in Singapore,but continue to face challenges in adopting digital solutions.There is also a need to strengthen other digital utilities which support the integration of SMEs into the wider supply chain ecosystem and enable access to new markets.For example,digital identities like SingP

70、ass are crucial to support customer authentication and payment authorisation.Serving as a digital passport,SingPass contains standardised and verifiable credentials which support a wide variety of business-related services,including accessing financial services and products.26SMEs:SMEs are mainly co

71、ncerned with the day-to-day functions of doing business.This places a primary focus on increasing profitability and reducing costs in the short-term.When considering digitalising out of business necessity,a similar analysis is applied to upgrading payment systems.Thus,SMEs are seeking solutions whic

72、h meets their business needs,takes the least effort to implement,and are the least disruptive to business operations.Pain Points:(1)Unable to identify which digital payment solution is safe,secure and best suited for the business given the large variety of options available(2)Perception that solutio

73、ns are complex and will require significant resources(time,monetary cost and talent)to implement(3)Deterred by the high cost of integrating multiple payment methods which consumers increasingly expect(4)Difficulty in navigating regulatory challenges to access regional marketsPainPointsforConsumersan

74、dBusinesses22Consumers:Singapores adoption of cashless payments is highest in the region at 97%.23 With majority of residents having a bank account and using card payments,many consumers are familiar with the use of digital payment methods.Thus,most efforts have been targeted towards vulnerable segm

75、ents of society like the elderly.For example,the Peoples Association(PA)s Seniors for Smart Nation programme has collaborated with Visa to host educational sessions for the elderly on digital payments,24 building on existing programmes like the Certificate in Seniors for Smart Nation programme.25Pai

76、n Points:(1)Lack of familiarity with digital tools and payment systems(2)Trust deficit in digital payments due to the rise of scam and fraud incidences in Singapore9 Leveraging Digital Payments for Financial InclusionThere is potential to leverage digital technologies to promote financial inclusion.

77、The use of NFC technology has enabled Visas Tap to Phone solution,democratising payment acceptance for small businesses by enabling them to use mobile phones as their point-of-sale terminals through Stripes payment rails.27 More recently,emerging technologies like AI and ML have the potential to hel

78、p companies make sense of large datasets,manage operating costs and help with compliance.Moreover,embedded finance,enabled by Application Programme Interfaces(APIs)can help SMEs provide value-added products and services to customers,creating a more unique experience.ExposingSMEstoEmergingTechnologie

79、sLarger companies can help familiarise SMEs with emerging technologies by embedding them into software solutions.For example,Microsofts 365 Copilot Programme in collaboration with Enterprise Singapore and AI Singapore aims to help SMEs build AI capabilities through accelerating the adoption of Copil

80、ot for Microsoft 365.Copilot is Microsofts AI tool which utilises large language models(LLM)to improve productivity on Microsoft applications.This allows SMEs to experience using AI in their daily operations and could subsequently encourage the utilisation of more advanced AI applications in the fut

81、ure.28AccesstoOtherFinancialServicesThese benefits have the potential to extend beyond payments to other financial services which are crucial for SMEs looking to scale.This includes access to micro-loans and the ability to provide tailored insurance products.Access to Financing:Experian is using AI

82、to assign SMEs with alternative credit scores to provide lenders a view on the creditworthiness of a company.This helps SMEs,which do not have the relevant financial information required for a traditional credit evaluation,to access working capital needed for expansion.29 Insurance:Prudentials AI-po

83、wered Pulse application includes a feature which offers SMEs simplified access to insurance and employee benefits.This allows SMEs to manage,submit or view their coverage plans on a single platform.3010b.Secure Digital EcosystemChanging Digital Threat LandscapeThe digital threat landscape has evolve

84、d significantly over the last few decades,driven by the digitalisation of systems and services as well as advancements in technology.As the world becomes more interconnected and reliant on digital technologies,businesses are exposed to new vulnerabilities,increasing the attack vector31 that threat a

85、ctors are able to leverage.As a result,cyber-related incidents have grown in frequency,with the number of malicious cyber incidents nearly doubling relative to the period before the pandemic.32This trend is similarly mirrored in Singapore the countrys status as an open financial hub with a relativel

86、y affluent population has made it a prime target for cybercrime.In 2023,Singapore experienced a higher-than-average digital fraud attack rate compared to other Asia Pacific countries.33 Phishing scam campaigns and ransomware were the most prevalent types of threats,with the number of phishing cases

87、doubling between 2021 and 2022 and ransomware incidents remaining comparatively high.34As Singapores digital economy continues to grow,third-party vulnerabilities,increasing reliance on the cloud and the rise of emerging technologies have resulted in greater exposure to cyber risks.Recognising these

88、 changes,the Cybersecurity Agency of Singapore(CSA)has amended the Cybersecurity Act in 2024 to mandate owners of critical information infrastructure(CII)to report a wider range of cybersecurity incidents,including those that occur within their supply chains.35 However,regulation alone is insufficie

89、nt given how digital technology has become an integral part of the way that people live,work and play.As Singaporeans spend an increasing amount of time online,there is a need to raise the level of cyber hygiene in society and rethink current approaches to cybersecurity.SupplyChainVulnerabilities:As

90、 supply chains become more complex and interconnected,threat actors are targeting upstream software and hardware vendors to gain access to protected systems.These vendors are often SMEs which may not have robust cybersecurity capabilities.This has increased the attack vector for hackers to access a

91、network or computer and presents a significant risk as most companies lack oversight over their vendors.As products and services become more complex,there is a higher chance for single points of failure,compromising the security of the final product or service.1Key Cybersecurity Threats in Singapore

92、Increased Reliance on the Cloud:There will be more attacks on cloud software as more businesses continue to store valuable information and data online.Singapore has emerged as an advanced public cloud market,with 30%of organisations reported to have implemented cloud computing.36 However,the move fr

93、om physical to virtual storage systems have presented new risks for businesses and consumers.Increased reliance on the cloud exposes companies to a wider range of cyberthreats,many of which target networks hosting multiple tenants and systems peripheral to businesses providing critical services.211U

94、seofEmergingTechnologies:Emerging technologies have enabled an increase in the intensity and sophistication of cyberthreats.Malicious actors have leveraged AI and ML to process large pools of data,automate and enhance hacking abilities.Deepfakes,for example,which use AI to manipulate audio and visua

95、l media to impersonate an individual or fake authenticity,have become an increasing cause of concern given its rising prevalence in the region.37 Widespread access to these technologies has also lowered the barrier to entry for threat actors,given the low cost and ease of engaging in these activitie

96、s.3Cyberthreats in Financial Services SectorThe financial services sector(FSS)continues to have the greatest exposure to cyber risk,given the availability of large amounts of sensitive data and transaction information.According to the International Monetary Fund(IMF)s Global Financial Stability Repo

97、rt in 2024,almost one-fifth of reported cyber incidents in the last two decades have impacted the financial sector,causing approximately US$12 billion in monetary losses since 2004.38 Payment fraud has been on the rise,with 80%of organisations being victims of either fraud attacks or attempts in 202

98、3,which is a 15%point increase from the previous year.39 New fraud types can be expected as RTPs are adopted and innovations in payments create new forms of payment methods.In Singapore,most attacks by automated bots in 2023 targeted e-commerce payment transactions,with more than 80%of reported phis

99、hing sites masquerading as entities within the Banking and Financial Services sector.40 With digital money gaining traction in Singapore and the rise of non-traditional financial services,it is expected that more companies will collect and utilise sensitive financial and user data for their business

100、 operations.41 Given that these firms are not subjected to the same regulatory and reporting standards as established players in the sector,they are at greater risk of data breaches.Singapores status as a financial hub has also increased its risk for money laundering activities.42 While the country

101、has strict rules on Anti-Money Laundering/Countering Financing of Terrorism(AML/CFT)and is part of the Financial Action Task Force(FATF),the proliferation of high-value transactions and use of emerging technologies to conceal cross-border money flows have made it increasingly difficult to identify i

102、llegal transactions.As a result,Singapore and other financial centres have experienced a surge of money laundering cases over the last few years.43 44Erosion of Digital TrustWhile the financial cost of cybercrime is acknowledged and understood,the impact on digital trust must also be considered.Digi

103、tal trust45 is a crucial pillar of the digital economy and supports the development of an inclusive digital society.It enables businesses and consumers to participate in the digital economy,remain open and trusting of digital technologies as they evolve.This affects their receptiveness towards techn

104、ological innovation.“If public trust in the digital domain is lost,users may be reluctant to carry out digital transactions.Citizens will not be able to reap the benefits of convenience and time-saving from the use of digital services.And the economy will have to forgo the productivity gains,and the

105、 growth that comes from new digital services.”Senior Minister Teo Chee Hean,8th Singapore International Cyber Week(SICW)20234612 Safeguarding Trust in PaymentsAs society becomes increasingly cashless,encouraging safe and secure online transactions will be crucial in cultivating digital trust.Technol

106、ogical innovations have enabled new solutions which safeguard trust by default throughout the payments journey.These solutions help create a secure environment for businesses and consumers to conduct online transactions and help with the detection of cyberthreats to mitigate further losses.Challenge

107、s in Establishing a Secure Digital EcosystemThere remain challenges in establishing a secure digital ecosystem in the evolving digital landscape.FraudDetectionAI,ML,and biometrics have been used for fraud detection.Their adeptness in identifying ever-evolving fraud patterns allows organisations to f

108、lag potential threats and address them before they occur.The Anti-Scam Centre(ASC)of Singapores Police Force(SPF)has collaborated with four banks in Singapore to identify and warn victims of fraud through the automation of information sharing,processing and SMS alerts.49 Further collaboration betwee

109、n GovTech and the ASC enables the police to leverage SingPass fraud analytics capabilities to identify and flag unusual account activities.50TokenisationInvolves the use of tokens which are randomly generated to substitute sensitive data like credit card information.Tokens with no intrinsic value ar

110、e being transmitted and stored,reducing the risk of data breaches in the event of a cyberattack.Visa uses network tokens for card-not-present(CNP)transactions via Visas Token Service(VTS),a client solution which merchants and financial institutions can adopt.In 2024,merchants who adopted VTS for the

111、ir digital payments saw a 58%reduction in payment fraud rates for Asia Pacific.48DigitalIdentificationInformation and data that authenticates an individuals identity in the digital world.These include the use of biometrics,fingerprints and voice or facial recognition.Carousells use of SingPass enabl

112、ed greater identity verification,with verified sellers earning a blue tick next to their names,improving visibility and trust amongst consumers.Such verification not only protects consumers against fraudulent behaviour,but also leads to the creation of a trusted marketplace between buyers and seller

113、s.4713SharedResponsibilityandOwnershipThe issue of shared responsibility and ownership has received increasing focus after a series of phishing scams in 2022 involving local banks.While there needs to be certain degree of personal ownership,it has not been decided how this should be split between bu

114、sinesses and consumers,especially if businesses have already adopted necessary security and scam measures mandated by the government.While the MAS and IMDA have published a draft consultation paper on an equitable loss-sharing framework for financial scams in 2023,the question of personal responsibi

115、lity and therefore full restitution regardless of circumstance is still being debated.51E-commerce platforms are also increasingly under scrutiny given their nexus with payments,and therefore payment fraud.Only second to job scams,e-commerce scams comprised 20%of total reported cases in 2023.52 Whil

116、e e-commerce platforms have implemented various measures,including in-app payments,escrow payment methods,user/seller verification and the development of the E-commerce Marketplace Transaction Safety Ratings,53 consumers continue to fall prey to C2C scams due to fewer protections on these platforms.

117、SupportingSMEsNoDesire,CantRewireSMEs continue to be more susceptible to cyberthreats.Less than 50%of SME executives are fully aware of the scope of possible cyber risks and the number of SMEs without any protection against cyber risks have increased.54 SMEs are especially vulnerable to cyberthreats

118、 primarily due to a(1)lackof awareness on the scope and impact of cyberthreats,and(2)alackofcybersecurityknow-howincludingexpertise,domainknowledgeandresources.Barrier1:Lackofawarenessonthescopeandimpactofcyberthreats:The main challenge is convincing SMEs that cybersecurity is integral in doing busi

119、ness.SMEs are typically more concerned about the revenue-generating aspects of business and perceive that they are unlikely to be a target of cyberattacks given their small size.Oftentimes,the perceived cost of compliance in adopting cybersecurity standards deters SMEs,given that there is no immedia

120、te or visible value-add.Barrier2:Lackofcybersecurityknow-how:SMEs often lack the expertise,domain knowledge and resources required to combat cyberthreats.While the Cyber Essentials Mark by the CSA provides guidance on which measures SMEs should prioritise,the 2023 CSA Cybersecurity Hygiene Report re

121、vealed that most companies in Singapore have only adopted about 70%of the essential measures,with the adoption of the full suite of essential measures being significantly lower.While the reasons for this vary,majority of the organisations polled attributed this to the lack of knowledge or experience

122、 in implementing relevant measures.55 With the fast-evolving nature of cyber risks and adoption of emerging technologies,this gap is likely to increase.Cross-BorderPaymentFraudAs digital systems become more connected,it will become increasingly challenging to protect financial systems against cross-

123、border syndicate fraud.Criminals can target companies operations in countries with less robust data security requirements to access wider networks,making it almost impossible to track and recover funds.Moving forward,there will be a need to enhance capabilities to detect and prevent financial crime.

124、This will require greater efforts between the public and private sector to enable the sharing of intelligence and best practices among a wider range of stakeholder groups.A good example of this effort is the Collaborative Sharing of Money Laundering/Terrorism Financing(ML/TF)Information&Cases(COSMIC

125、)Program developed in collaboration between MAS and six major commercial banks.56 Launched in 2024,it allows these financial institutions to securely share information on customers which may be involved in financial crime according to stipulated thresholds.14c.Digital SustainabilityThe concept of di

126、gital sustainability has been increasingly adopted by digital economy actors in recognition of the interplay between digitalisation and sustainability.Best encapsulated in the framework“Greening Tech”and“Tech for Green”,the term broadly describes the need to mitigate carbon emissions from digital in

127、frastructure and services while leveraging the potential of digital tools to help address sustainability challenges.“Our digital sustainability efforts are a commitment to ensure that innovation and sustainability go hand in hand.”Senior Minister of State Janil Puthucheary at the SCS Sustainable Tec

128、h Forum 202457Greening Tech:The need to mitigate carbon emissions from the digital economy,comprising the provision of digital services(software)and the foundational digital infrastructure(hardware)used to power them.E.g.,Leveraging technologies like AI and blockchain to increase operational efficie

129、ncies in data centre operations and reducing energy consumption.Tech for Green:Leveraging digital technologies and tools to support sustainability initiatives;therefore,furthering efforts towards achieving sustainability goals.E.g.,Optimising resource efficiency through the digitalisation of supply

130、chains,providing companies with greater insight into their value chain,allowing them to accurately track,collect and report their emissions.15 What Does Digital Sustainability in Payments Look Like?Digital sustainability in the context of digital payments has been less explored given that the links

131、between digital payments and their environmental impact are less clear.However,by applying a similar framework to unpacking digital payments,digital sustainability refers to the need to(1)green payments and(2)leverage digital payments to promote sustainability goals.Greening PaymentsThe market for t

132、raditional payment methods such as cash and credit cards remains substantial.The environmental impact of these methods is mainly attributed to the emissions and waste generated across the value chain,including the production of physical credit cards,paper receipts,POS terminals and ATMs.Many compani

133、es have already considered this and have implemented various initiatives to reduce their carbon footprint.Some examples include the use of recyclable materials to make eco-friendly credit cards and manufacture hardware,packaging and other accessories that come with the distribution of POS terminals.

134、Others have attempted to address the resultant waste through disposal programmes for expired credit cards and old POS hardware.With the increased adoption of digital payment methods,the conversation has expanded to include considering the carbon footprint of e-payment transactions.This has been larg

135、ely driven by the regulatory push towards developing Environmental,Social and Governmental(ESG)standards for reporting,with companies attempting to measure their own emissions and set net-zero targets.These range from utilising AI and blockchain technology to automate and make internal processes mor

136、e efficient,to using renewable energy to power operations where available.However,there is also a need to consider emissions produced from the overarching digital infrastructure that supports digital payments.While a one-to-one comparison between traditional payments and digital payments shows that

137、the latter produces 80%less carbon dioxide,this figure is less substantial after considering the carbon footprint of data centres(DCs)and cloud infrastructure required to enable these transactions.The International Energy Agency(IEA)estimates that DCs and data transmission networks contribute to 1%o

138、f global energy-related Greenhouse Gas(GHG)emissions.58While efforts to limit energy demand growth from DCs have been successful thus far,the computing power required to support emerging technologies like AI and ML will be extremely energy intensive.Rough estimates indicate that AI power consumption

139、 will grow at a CAGR of 25%to 33%,outpacing overall growth of DC power demand at 10%.59 Moving forward,reducing emissions will require collective effort and commitment from relevant stakeholders part of the financial services industry to develop new frameworks and solutions.The government has begun

140、exploring the potential of green software a system designed to minimise the amount of energy used to process code and has since committed funding for research and trials with industry leaders to set common standards and explore solutions in this area.60Leveraging Digital Payments for SustainabilityO

141、ne key way to leverage digital payments for sustainability is by considering how payment platforms and providers can make sustainability more affordable and accessible for businesses and consumers.These companies contain a wealth of data from transactions which can generate valuable insights on cust

142、omers interests,behaviours and consumption habits.PSPs can explore using such data to incentivise their clients and users towards greener practices.16The government is also exploring how to develop digital utilities which facilitate the development of reliable ESG data for the financial services sec

143、tor with Project Greenprint.64 It launched Gprnt in 2023,an integrated digital platform for ESG data collection and reporting,which is expected to help companies automate ESG reporting processes and allow financial institutions,regulators and large corporates to access relevant data to support susta

144、inability initiatives.65 The MAS has also collaborated with the United Nations Development Programme and Global Legal Entity Identifier Foundation which leverages capabilities established in Greenprint to help SMEs.Known as Project Savannah,this initiative helps SMEs worldwide to digitalise basic ES

145、G credentials,strengthening their access to global financing and supply chains.66IncentivisingGreenPracticesinClients Encouragingresponsibleandsustainablepracticesinclients:Oracle Cloud Services offers a Climate Change Analytics Cloud Service with built-in AI to help banks understand their environme

146、ntal footprint as well as the companies they finance or invest in.61 With AI and Natural Language Processing(NLP)tools,Climate Change Analytics can identify publicly available information on companies climate change initiatives,aiding in banks overall assessment of climate risk and providing a clear

147、er picture of their performance against compliance frameworks.IncentivisingGreenPracticesinClientsandUsersProvidingUserswithOpportunitiestoParticipateintheGreenEconomy Increasingawarenessofonescarbonfootprint:Stripes partnership with the firm Climatiq offers customers embedded carbon emission estima

148、tes for Stripe payments,as well as analysis on the sources of these emissions.62 Motivatinggreenpurchasesthroughrewardsystems:DBS has developed an eco-friendly card that offers cardmembers green rewards such as cashback deals and discounted prices when they patronise eco-friendly and sustainable bus

149、inesses.6317Singapores efforts are distinguished by a whole-of-government approach to cultivate a Smart Nation,which has established a strong foundation required to develop an innovation ecosystem in the country.Its favourable business and regulatory environment,skilled workforce and overall competi

150、tiveness are some of its key distinguishing factors which attract multinational companies(MNCs)from around the world.d.AHubforInnovation,TechnologyandEnterpriseSingapore has reiterated its ambitions to establish itself as a global-Asia node for innovation,technology and enterprise.67EstablishingaStr

151、ongFoundationforInnovation691.Pro-BusinessEnvironment Ranked as worlds best business environment for the last 15 years,according to the EIU70 Political and economic stability and favourable regulatory environment has made it conducive for businesses Further supported by government incentives and gra

152、nts to attract businesses in key sectors2.Competitiveness Ranked 1st in the International Institute for Management Development(IMD)s World Competitiveness Ranking in 2024713.SupportingBusinessInfrastructure Transport and logistical infrastructure have been consistently ranked amongst the best in the

153、 world72 2023 World Digital Competitiveness report revealed that Singapore is 3rd in the world on digital economy infrastructure due to its world-leading country credit rating and Internet bandwidth speed73Source:Global Innovation Index(GII)202368SingaporeasanInnovationHubamong 132 economies globall

154、y5thamong 16 economies in SoutheastAsia,EastAsiaandOceania1st18These factors are especially important for companies in the financial services industry(FSI)given the volume of sensitive financial data that flows through the country and the importance of being open and connected to other hubs around t

155、he world.With support from MAS to further promote and develop Singapores FSI,the country has successfully developed strengths in certain core sectors,including banking and finance,asset management,capital markets and fintech startups.76 This has aided in its ongoing efforts to become a global financ

156、ial centre.4.Skilled Workforce Singapores diverse and skilled talent pool has made it attractive for multinationals looking to establish innovation centres and headquarters in the region Ranked 1st in Asia-Pacific and 2nd in the world for talent competitiveness according to the 2023 Global Talent Co

157、mpetitiveness Index(GTCI)report by INSEAD745.Strong Legal Protections Strict laws on data privacy and robust intellectual property(IP)regime Singapores Personal Data Protection Act(PDPA)is comparable to international standards Ranked 2nd in the International Property Rights Index in 2022,and 5th in

158、the 2024 World Trademark Review IP Office Innovation Ranking756.Connectivity Strengthen linkages to the region and the rest of the world to help start-ups and local businesses to scale Embarked on various bilateral agreements and Memorandums of Understanding(MOUs)with like-minded partners to further

159、 develop its innovation ecosystem19 InnovationastheLifebloodoftheFinancialServicesIndustry(FSI)Cultivating innovation is key for Singapore to retain its position as a global financial hub.E-payments continue to be a crucial aspect of the FSI and underpin MAS intentions to create a Smart Financial Se

160、ctor,where innovation is pervasive and fintech is widely used.77 Various models of partnership have been crucial to support this both between the public and private sector(PPPs),as well as among private sector players(B2B).Public-PrivatePartnerships(PPPs)PPPs have emerged as a key model for collabor

161、ation in the process of establishing an e-payments society and have been crucial in promoting innovation and creating a responsive policy environment.(1)PromotingInnovation:The government has focused on creating an enabling environment to explore the feasibility of new payments technologies and solu

162、tions.(2)CreatingaResponsivePolicyEnvironment:Through consistent engagement,regulators are aware of the need to review policies to ensure that they keep pace with technological development,while ensuring that regulation does not stifle innovation in new business models.PromotingInnovationThe governm

163、ent has created an enabling environment for innovation through the provisionofincentives to support the development of common utilities for the FinTech ecosystem,providingplatformstoencouragecollaboration and useofregulatorysandboxesforexperimentation.ProvisionofIncentives:The Financial Sector Techn

164、ology and Innovation Scheme(FSTI 3.0)78 and Financial Sector Development Fund(FSDF)79 are some examples of funding support provided by the government.Platforms for Collaboration:The Singapore FinTech Festival and the Singapore Week of Innovation and Technology(SWITCH)are both in their ninth editions

165、 and bring together financial ecosystem players to explore opportunities for partnership.The IMDAs Open Innovation Platform(OIP)enables companies to crowd-source for innovative digital solutions from other ecosystem players,including start-ups,research institutes and technology providers.80Regulator

166、y Sandboxes:The use of regulatory sandboxes creates opportunities for innovation and experimentation in a live environment.These sandboxes relax regulatory and legal requirements for a specific duration,allowing companies to test the feasibility of solutions.8120CaseStudy:ProjectOrchid Pilot initiat

167、ive launched in 2021 to explore the technical feasibility and infrastructure required for a digital Singapore dollar(SGD).82The project explores how a digital SGD would interact with existing payment systems and its applications for businesses and consumers.The first phase explored potential use cas

168、es for a programmable digital SGD and the infrastructure required.The second phase is currently ongoing and focuses on the commercial application of a digital SGD in Singapore and the development of core infrastructure components in the Orchid Blueprint.Exploring the feasibility of wholesale CBDCs t

169、o settle large-value interbank transactions are part of this phase,where MAS will pilot the“live”issuance of wholesale CBDCs with local banks.83Responsive Policy EnvironmentThe MAS has also reviewed frameworks and policies on digitalisation and related assets,rules on fair dealings,as well as assess

170、ing the overall stability of the financial sector.Part of this process involves working closely with industry partners and fintech players to ensure that there is balance between regulation and innovation to explore the potential of new business models.84CaseStudy:ApproachtoRegulatingBuyNow,PayLater

171、(BNPL)Services85The introduction of BNPL services in Singapore in the late 2010s showcases the governments approach to regulating new innovations in payments.BNPL provides consumers an alternative to upfront payments by dividing the total initial cost into equal payment instalments over a period of

172、time.Through various consultations with industry players to understand the viability of the business model and potential opportunities and risks that come with it,the government eventually decided that an industry-led standard would be sufficient to mitigate the risks in Singapores BNPL landscape.Th

173、is considers its current utilisation rate and the experience of other countries where BNPL services are more prevalent.Guided by the MAS,the BNPL Working Group comprising of the Singapore FinTech Association(SFA)and industry players launched a BNPL Code of Conduct in 2022 to address notable risks an

174、d safeguard consumer interests.86B2BPartnershipsforInnovationIn addition to PPPs,initiatives developed through private sector partnerships have spurred innovation in new areas.These initiatives have made payments seamless and safer for consumers and have made payments and other financial services mo

175、re accessible in traditional industries.Example:Amazon and HSBC are exploring the use of Purpose Bound Money(PBM)as a common protocol in the tokenisation of payables from Amazon to merchants in supplier financing.87 This would encode disbursement conditions for tokenised payables,88 thereby addressi

176、ng financing needs for sellers and unlocking liquidity for merchants,improving their access to financing and working capital.21 Example:Visa,UOB and Doxa have collaborated to transform payment processes for the construction industry.89 By leveraging Visas network and Accelerator Programme,Doxa would

177、 be able to connect contractors,subcontractors and financiers on a single platform to digitalise the previously manual workflow of reviewing and documenting progress claims,certification and payments on an embedded finance platform.90 UnderstandingSingaporesRoleintheGlobalMarketplaceUnpacking Singap

178、ores key strengths in innovation reveals that its distinctive value can be attributed to its connectivity to the rest of the region.While Singapores enabling environment has encouraged solutions to be explored and tested in the country,the eventual goal for most companies is to ensure these solution

179、s are scalable and relevant regionally,if not globally.To this end,successful innovations that move beyond proof of concept to live implementation are typically those that address an unmet need affecting a sizeable proportion of the population or have potential applications beyond Singapore.Unlike p

180、ilots which are less resource-intensive,implementing a live solution often requires long-term buy-in from multiple stakeholders.Hence,it is important to ensure that innovation is purpose-driven and does not occur for innovations sake.This could include focusing on certain key principles and objectiv

181、es that are aligned with the countrys overarching priorities,like overcoming barriers to financial inclusion,or by considering the larger business problem which needs to be solved.Moreover,as the market for innovation in emerging areas continues to grow and change the digital payments landscape,Sing

182、apore will need to differentiate itself on quality and value.For it to remain competitive amidst rising costs,it must continue attracting a diverse range of talent and ensure that its local talent pool is equipped with relevant skills to strengthen its Research,Innovation and Enterprise(RIE)ecosyste

183、m.While Singapores penetration rate for disruptive tech skills is above the global average,the penetration rate in the FSI is comparatively lower.This indicates that greater investment in training and development initiatives to enhance disruptive tech skills required for this industry will be needed

184、 moving forward.“All advanced economies at this level have to push on innovation and productivity to move forward,and we are in this stage of development as well now where we really have to work harder on productivity and innovation.”Deputy Prime Minister Lawrence Wong at the post-Budget 2023 Roundt

185、able9122e.EncouragingRegionalGrowthandConnectivityUnderstanding Singapores role in the global marketplace highlights the importance of facilitating interoperability in strengthening its position as an innovation and global trading hub.Broadly defined as the ability of a system,product or service to

186、communicate and facilitate seamless data exchange with technically different ones,92 interoperability of different systems and services ensures that solutions:(1)extend beyond local use cases and can be utilised in other markets and(2)help drive market growth by enabling seamless cross-border commer

187、ce between businesses.Being open and connected to regional markets is thus crucial to Singapores strategy given its small domestic market and its role as a global financial centre.Singapore has a major role in facilitating regional and international payment flows and the government has acknowledged

188、the importance of payment interoperability as one of four key pillars crucial in facilitating end-to-end digital transactions.93DigitalPayments:TheLast-MileinCross-BorderCommerceEnabling seamless and secure cross-border digital payments is a key enabler for cross-border commerce.Payments are the las

189、t-mile in cross-border commerce and underpins the systems required to complete any digital transaction.Common methods of cross-border digital payments include wire transfers,credit card transactions,electronic funds transfers(EFTs),digital wallets,fintech platforms and cryptocurrencies.94 EnhancingC

190、ross-BorderPaymentsIn recent years,greater focus has been dedicated to making cross-border payments faster,more accessible,affordableandtransparent.95 This has been supported by collective effort among both public and private sector players in the region to consolidate domestic payment systems and e

191、stablish common payment rails and networks.CollaborationBetweenPaymentsEcosystemPlayersforMoreConvenientCross-BorderPaymentsVisa and SWIFT have collaborated to streamline international business-to-business(B2B)payments by strengthening connectivity between their networks.96 This partnership will inc

192、rease the speed and efficiency of cross-border payments by using SWIFTs Payment Pre-validation of Visas B2B Connect Payments to identify and eliminate potential errors before transactions were conducted,thus reducing delays.Tracking data powered by SWIFT will also increase end-to-end transaction vis

193、ibility.PPPstoTesttheFeasibilityofNewTechnologiesinCross-BorderPaymentsThe government has embarked on various initiatives with the private sector to encourage greater interoperability across payments solutions.These initiatives leverage technological advancements to lower the cost and enable greater

194、 efficiencies in cross-border payments,thereby increasing inclusion and access for businesses and individuals.An area that has seen significant progress is the development of payments infrastructure which enables cross-border retail real-time payments(RTP).This was developed with the primary aim of

195、lowering the cost of remittances by offering greater convenience and access in small value cross-border transfers.23CaseStudy:LinkingNationalRetailPaymentRailswithProjectNexusAs domestic fast payment systems(FPS)reached a level of maturity in the region,there presented opportunities to link these sy

196、stems and develop cross-border payment infrastructure.After the success of multiple bilateral linkages in the region which provided a blueprint for connecting FPS,97 the next step was to explore a model which could scale efficiently and facilitate greater interoperability between FPS globally.In 202

197、2,the Bank for International Settlements(BIS)and MAS launched a proof-of-concept for Project Nexus,which explored the feasibility of enhancing global payments network connectivity via multilateral linkages of countries national retail payment systems onto a single cross-border network.The creation o

198、f a working prototype of Project Nexus was subsequently used to connect the test systems of three established RTP systems:the Eurozones TARGET Instant Payment Settlement system,Singapores FAST system and Malaysias Real-time Retail Payments Platform.The prototype illustrated that connecting RTPs mult

199、ilaterally is technically feasible and could have significant benefits for participating countries.98 This project has most recently completed its third phase in 2024 and is looking towards the live implementation involving Bank Negara Malaysia,Bangko Sentral ng Pilipinas,the MAS,the Bank of Thailan

200、d and the Reserve Bank of India.99Consolidatingdomesticsystems Harmonising different private and public sector solutions and implementation methods to deliver a consolidated solution E.g.Development of FAST payment system for retail payments in 2014Exploring bilateral cross-borderapplications Explor

201、ing possibility of extending domestic convenience to cross-border applications E.g.,Singapore-Thailand PayNow-PromptPay linkagePotentialforregionalandglobalconnectivity Developing a solution which is standardised,scalable and replicable across different countries E.g.,Project NexusProcessinExploring

202、ApplicationsinRetailReal-TimePayment(RTP)SystemsOther trials have explored how new payment technologies can enable more secure cross-border transactions across retail and wholesale transactions.UBIN+Cross-border foreign exchange(FX)settlement with wholesale CBDCs:UBIN+builds on Project Ubin which ex

203、plores the use of blockchain and distributed ledger technology(DLT)for the clearing and settlement of payments and securities.100 UBIN+focuses on studying potential business models and governance structures,developing technical standards and infrastructure,establishing policy guidelines for cross-bo

204、rder FX settlement and includes the use of cryptography to increase the protection of data and identity.10124 Project Guardian Use of blockchain in institutional digital assets trading:This project explores the use cases for secured borrowing and lending on a public blockchain-based network and woul

205、d enable stakeholders to assess the risks and benefits offered by the tokenisation of assets.This includes the introduction of regulatory safeguards and controls into financial protocols to minimise the risk of tokens being compromised.102KeyChallengesinFacilitatingInteroperabilityThese projects hav

206、e been crucial in revealing challenges in connecting various national payments systems and facilitating interoperability.Projects at this scale will need to address challenges surrounding technical and regulatory interoperability.The latter remains a key barrier given the disparities in regulatory f

207、rameworks and governance structures across different countries.PromotingASEANIntegrationSingapore has attempted to strengthen connectivity by deepening its linkages with like-minded partners through various mechanisms.These include more formalised mechanisms like Digital Economy Agreements(DEAs)to s

208、et rules and standards for the digital economy,as well as various Memorandums of Understanding(MOUs)on areas of mutual interest.Some of these initiatives aim to connect different domestic digital utilities105 and systems,for example through establishing linkages between RTP systems and encouraging d

209、igital trade.106 Whilst exploring opportunities with like-minded partners globally,Singapore has concurrently emphasised the importance of ASEAN in developing rules and standards of its own,especially amidst increasing global economic fragmentation.Technical Interoperability:Harmonising different te

210、chnical standards,messaging formats and processing flows across different domestic systems.E.g.,Adoption of ISO20022 for payments:An open global standard for financial information.It provides consistent,rich and structured data useable for every type of financial business transaction,enabling intero

211、perability between stakeholders in the payments ecosystem.103Regulatory Interoperability:Ensuring there is consistency in legal,regulatory and supervisory frameworks across different countries.This covers a broad range of regulatory frictions which vary for each PSP.These include data privacy and se

212、curity legislation,differences in regulatory and oversight frameworks,compliance with AML/CFT and limited access to payment systems and infrastructure.104E.g.,Regulations on cross-border data flows:Data collection and information-sharing across borders are necessary for effective supervision,oversig

213、ht and risk management for regulators and PSPs.Recent policies mandating specific types of data to be localised pose additional barriers to cross-border payments,leading to delays in processing speeds and increasing overall cost.Regulators will need to balance enabling cost-efficient cross-border pa

214、yments and ensuring sufficient protections for data.Considering the heterogeneity of data governance frameworks around the world,other mechanisms will be needed to set baseline rules and standards which enable data flows.25“Singapore believes a more integrated and connected digital ASEAN will benefi

215、t all of us.This is especially so if we can identify areas of potential to unlock.”Minister for Digital Development and Information of Singapore,Mrs Josephine Teoat the 4th ASEAN Digital Ministers Meeting and Related Meetings(ADGMIN)2024107ASEAN economic integration is thus imperative for the region

216、s long-term growth.Initiatives to deepen trade integration and collaboration to facilitate cross-border flows of goods,services and people must also extend to digital payments and its enabling mechanisms.Current ASEAN-level initiatives such as the 2023 ASEAN Leaders Declaration on Advancing Regional

217、 Payment Connectivity and Promoting Local Currency Transaction,108 Strategic Action Plan(SAP)for Financial Integration(2016 2025)109 and Policy Guidelines of the ASEAN Payments Policy Framework for Cross-Border Real Time Retail Payments110 have sought to improve the availability,accessibility,afford

218、ability,sustainability,safety and efficiency of cross-border payments.Moving forward,the ASEAN Digital Economy Framework Agreement(DEFA)has great potential to establish rules and standards for key issues in the digital economy and reconcile different approaches to data governance.Achieving consensus

219、 on some of these areas can help reduce regulatory frictions and therefore compliance costs for businesses.CoexistenceandCollaboration,NotCompetitionEncouraging interoperability in cross-border payments will require stakeholders across the ecosystem to commit substantial time and resources.This incl

220、udes the need to upgrade legacy infrastructure and encourage wide-scale adoption of technical and regulatory standards in cross-border payments.These areas are especially challenging to move on for pilots testing the feasibility of new payments solutions given the lack of an established regulatory l

221、andscape and thus the need for multiple iterations to address complex challenges.Project Nexus,for example,was conceptualised in 2021 and has only recently completed the blueprint required for connecting domestic RTP systems,preparing for live implementation in 2024.111 Other pilots involving digita

222、l money,including the use of wholesale CBDCs,will likely take more time given that domestic live implementation will only commence in 2024.112There will continue to be a market for existing cross-border payment methods and,looking ahead,for different PSPs to co-exist and collaborate with one another

223、.The value of improving on existing payment systems and methods should not be overlooked amidst ongoing innovations in new payment technologies.B2B partnerships in this area have supported innovation and encouraged open networks to enable greater ease of cross-border payments.Ultimately,the value of

224、 a diverse payments ecosystem lies in its ability to cater to a broad range of different needs,enabling greater choice for consumers and businesses.There will continue to be trade-offs between speed,cost and coverage among different cross-border payment methods,which will determine its usage.Ongoing

225、 efforts to facilitate greater interoperability in cross-border payments should thus focus on how to ensure consumers can access and confidently use new forms of payment,leveraging partnerships to build on individual efforts where relevant.264.PolicyRecommendations1.Digitalising the Wider Supply Cha

226、in EcosystemTo create an enabling environment for businesses to adopt digital payments,greater efforts must be directed to digitalising trade processes across the entire supply chain.While digital trade facilitation has seen progress over the last few years,digitalising trade documents and processes

227、 will require concerted efforts among all stakeholders to develop frameworks for global trade and overcome barriers to adoption.Globally,the International Chamber of Commerce and World Trade Organization have developed a Standards Toolkit for Cross-Border Paperless Trade,which provides an overview o

228、f existing standards to drive trade digitalisation and identify gaps which need to be addressed.113 Regional efforts to facilitate greater interoperability must also keep pace.Governments in the region must develop consensus on digital trade rules and equip supply chain ecosystem stakeholders with t

229、ools to digitalise and adopt interoperable standards.SMEs,in particular,will require greater support to digitalise and adopt digital payment solutions.While the government has introduced initiatives towards this end,114 SMEs continue to face issues related to access and affordability.Future efforts

230、can consider further segmenting SMEs by digital maturity to assess their level of readiness in adopting digital payments,which would also help larger companies develop tailored solutions to address them.For example,companies with entrenched legacy payment systems will require more support and resour

231、ces to transition to updated ones,while newer SMEs will find plug-and-play solutions easier to implement.2.Developing Products and Frameworks that are Secure-by-DesignGiven that cyberthreats are becoming more complex and convincing,it will become more challenging for businesses and consumers to iden

232、tify and respond cyberthreats when they occur.Current efforts to raise the level of cyber hygiene in society through education and awareness will no longer be sufficient.Moving forward,there is a need to build resilience into business processes and technology by developing standards and creating pro

233、ducts which are secure-by-design.Technology:A greater responsibility should be placed on the developers of software and hardware to ensure that products have robust security features and undergo rigorous testing before launching them.This would address the issue of supply chain vulnerabilities and t

234、he likelihood of single points of failure.While it will impact the time-to-market of new products and solutions,these standards are important to ensure that innovation does not compromise on security.Processes:Introducing greater friction in business and consumer processes can help deter or prevent

235、individuals from taking certain actions.These measures can include increasing the downtime after making a large-value transaction,or introducing tiered authentication checks when authorising large sums of money.The introduction of Money Lock by local banks in 2023 is a good example of a measure that

236、 limits the amount of money customers can transfer digitally.1153.NudgingSecureandSafeBehaviourAs most scams continue to be self-authorised,there is a need to nudge safe and secure behaviour among consumers,particularly for younger adults which currently comprise the majority of scam victims in Sing

237、apore.116 This demographic tends to believe that they are less susceptible to scams given their familiarity with digital technology and higher levels of financial literacy.Thus,it is important to increase awareness of the types of scams this demographic faces and develop more compelling ways to enga

238、ge them.Financial services platforms can facilitate this by leveraging user data to create an archetype which represents this demographic,or by developing new narratives which are more engaging.274.Enhancing the Quality and Availability of Sustainability DataThe flow of reliable ESG data is crucial

239、for firms to mobilise capital for sustainable projects,monitor their progress in achieving net zero targets and assist with sustainability reporting.While larger firms are mostly equipped to collect and process financial data,the collection of sustainability data continues to be challenging due to d

240、ifficulties in certifying the reliability and accuracy of data.This is considering that SMEs make up most supply chains and often do not have the capabilities to adopt digital tools.This will require addressing challenges surrounding ESG compliance and supporting firms to develop the necessary infra

241、structure to reliably track and manage sustainability data.Project Greenprint has been gaining traction among larger players,and future efforts should explore how to increase its accessibility and overcoming barriers to adoption among SMEs.5.StrengtheningPublic-PrivatePartnerships(PPPs)PPPs have bee

242、n successful as a model of collaboration by leveraging strengths from both the public and private sector to spur innovation.While there are multiple ongoing pilots in this space,the main challenge for PPPs is having sufficient buy-in from a broad range of key stakeholders to scale a successful proof

243、 of concept.Future PPPs can thus consider adopting a purpose-driven approach to innovation and involve a broader range of stakeholders in conversations prior exploring a proof-of-concept.Purpose-driveninnovation:Considering the limited bandwidth to embark on multiple live projects,exploring future i

244、nnovation would need to be more targeted and focus on specific areas Singapore wants to develop moving forward.This will require compelling use cases for solutions not just in Singapore,but for the region.Involving a broader range of stakeholders:Given that non-financial industries have a nexus with

245、 payments,and digital payments are becoming more borderless,it is imperative to consider the perspectives of stakeholders who have been integrated into the new ecosystem.This ensures that innovation remains relevant,and regulation is fit-for-purpose.As the ecosystem grows,part of this includes ensur

246、ing that payment infrastructure is accessible to a wider range of stakeholders.6.EnsuringRegulationKeepsPacewithInnovationRegulation must remain responsive to innovation even as emerging technologies spur the growth of new NFIs and FinTechs.This will require regulators to periodically review and imp

247、rove on current regulatory frameworks and take efforts to understand the risks and opportunities in a nascent area.Striking a balance between innovation and regulation is crucial to cultivating an innovation ecosystem,particularly in enabling start-ups,which continue to face high compliance costs.In

248、 addition to PPPs and other working groups,regulators can also consider strengthening other mechanisms to in response to new solutions.For example,regulatory sandboxes can include longer time horizons for new projects,providing more time for start-ups to iterate and explore the technical feasibility

249、 of a solution.7.CultivatingTalentPoolUpskilling workers to ensure that they are well-equipped with relevant skills in a fast-evolving digital landscape will be crucial to ensure Singapore remains competitive as a regional hub.Rising costs have become an increasing concern for international firms,11

250、7 and cultivating a skilled workforce will be key in distinguishing Singapores value proposition.Skills that are required to support the growing RIE ecosystem are changing rapidly,even within the same jobs.This phenomenon is likely to be compounded with the advent of generative AI,given its potentia

251、l to augment and disrupt current jobs.118Given that the return on investment to upskill and hire new talent is only visible in the medium to long-term,the government should continue subsidising upfront costs for SMEs to hire and provide training and development programmes to enhance tech skills in t

252、he current workforce.This must be complemented with efforts to reframe employers current approach to hiring.To strengthen Singapores workforce in the long-term,a skills-first approach must be adopted given the dynamic nature of the job market.285.Conclusion:CollectivelyShapingOurDigitalFutureThe fut

253、ure of payments in Singapore will be simultaneously shaped and influenced by key trends within the payments space and broader themes in the digital economy.By showing how inclusion,security,sustainability,innovation and interoperability are influencing the payments landscape,we hope to highlight how

254、 the growth of digital payments will be supported by several underlying enablers which are crucial in creating a safe,secure,and inclusive financial ecosystem.These include the importance of providing greater support for SMEs,ensuring a diverse and well-equipped talent pool and ensuring a responsive

255、 regulatory environment.There will be a need to strengthen these enablers in response to an increasingly complex operating environment.Collaborative efforts between governments,businesses and other financial ecosystem players will be crucial in ensuring existing measures remain relevant.We have cons

256、olidated these as recommendations that financial ecosystem stakeholders can consider implementing.While this report focuses on Singapore,we hope that our recommendations may serve as a point of reference for the broader region as it accelerates digital adoption.Examples of innovations in payment tec

257、hnologies highlighted in this report have immense potential to help countries achieve their goals of inclusive and sustainable growth,while some of the practices featured could provide countries with solutions to emerging challenges they may face in digitalising the financial sector.This will be use

258、ful even as ASEAN negotiates the DEFA,which aims to develop rules and standards for key areas of the digital economy,with the aim of promoting greater regional digital integration.296.Appendix:ParticipatingOrganisationsThe SIIA would like to thank the following organisations for their contributions

259、to the report.We are grateful to all parties for sharing their insights and perspectives with us.1Accredify2Agridence3AI Singapore4Airbnb5Amazon6American Chamber of Commerce Singapore7Atome8Bank for International Settlements(BIS)9Cisco10Creative Eateries11Cyber Security Agency of Singapore(CSA)12DCS

260、13Enterprise Singapore14Evonik15Experian16Google17Grab18IBM19International Chamber of Commerce,Digital Standards Initiative20KPMG21Lalamove22LGT Bank23LinkedIn24Monetary Authority of Singapore(MAS)25Maybank26Angsana Council27OCBC28Paypal29PCI Security Standard Council30PwC31SAP32SEA Group33Singapore

261、 Business Federation(SBF)34SMBC35Standard Chartered36SWIFT37Tech for Good Institute(TFGI)38UOB39Ya Kun307.References1 Google,Temasek,&Bain&Company.(2023).e-Conomy SEA 2023.In Google.Google.https:/ The digital economy comprises of“both the value-added(VA)of the Information&Communications(I&C)sector a

262、nd the VA from digitalisation in the rest of the economy.”|Infocomm Media Development Authority IMDA&LKY School of Public Policy LKYSPP.(n.d.).Singapore Digital Economy Report 2023.In IMDA.IMDA.https:/www.imda.gov.sg/-/media/imda/files/infocomm-media-landscape/research-and-statistics/sgde-report/sin

263、gapore-digital-economy-report-2023.pdf3 Association of Southeast Asian Nations ASEAN.(2023b,August 19).Digital Economy Framework Agreement(DEFA):ASEAN to leap forward its digital economy and unlock US$2 Tn by 2030.ASEAN.https:/asean.org/asean-defa-study-projects-digital-economy-leap-to-us2tn-by-2030

264、/4 Infocomm Media Development Authority IMDA&LKY School of Public Policy LKYSPP.(n.d.).Singapore Digital Economy Report 2023.In IMDA.IMDA.https:/www.imda.gov.sg/-/media/imda/files/infocomm-media-landscape/research-and-statistics/sgde-report/singapore-digital-economy-report-2023.pdf5 Mordor Intellige

265、nce.Singapore Payments Market Insights.(n.d.).https:/ Visa Consumer Payment Attitudes Study 2024 Singapore Report7 International Monetary Fund-Asia and Pacific Dept IMF.(2021).Singapore:Selected issues.In IMF eLibrary.International Monetary Fund.https:/www.imf.org/-/media/Files/Publications/CR/2021/

266、English/1SGPEA2021002.ashx8 Business Times.(2018,November 11).From Nets to PayNow-e-payments have evolved.The Business Times.https:/.sg/companies-markets/banking-finance/singapore-fintech-festival-2018/nets-paynow-e-payments-have9 Woo,J.J.(2017).Singapores Transformation into a Global Financial Hub.

267、In LKY SPP.https:/lkyspp.nus.edu.sg/docs/default-source/case-studies/entry-1516-singapores_transformation_into_a_global_financial_hub.pdf?sfvrsn=a8c9960b_210 Smart Nation Singapore.(n.d.).Electronic payments.https:/www.smartnation.gov.sg/initiatives/e-payments/11 International Monetary Fund-Asia and

268、 Pacific Dept IMF.(2021).Singapore:Selected issues.In IMF eLibrary.International Monetary Fund.https:/www.imf.org/-/media/Files/Publications/CR/2021/English/1SGPEA2021002.ashx12 UOB.(2021).COVID-19 game changer:UOB survey shows 70 per cent of consumers increased digital payment usage in Singapore.ht

269、tps:/ Monetary Authority of Singapore MAS.(n.d.).Cross-border payment linkages.MAS.https:/www.mas.gov.sg/development/e-payments/cross-border-payment-linkages14 Smart Nation Singapore.(n.d.-a).Digital Society.https:/www.smartnation.gov.sg/about-smart-nation/digital-society/15 Infocomm Media Developme

270、nt Authority IMDA.(n.d.-c).Singapore Digital Society Report 2023.https:/www.imda.gov.sg/-/media/imda/files/infocomm-media-landscape/research-and-statistics/singapore-digital-society-report/singapore-digital-society-report-2023.pdf16 As defined in the Digital Financial Services report:“financial serv

271、ices which rely on digital technologies for their delivery and use by consumers.”|World Bank Group.(2020).Digital Financial Services.https:/pubdocs.worldbank.org/en/230281588169110691/Digital-Financial-Services.pdf17 Shanmugaratnam,T.(2020,September 4).Reply to Parliamentary Question on Number of Ad

272、ult Singaporeans Not Having a Bank Account and Reasons for Not Having One.Parliament Sitting on 4 September 2020,Singapore.https:/www.mas.gov.sg/news/parliamentary-replies/2020/reply-to-parliamentary-question-on-number-of-adult-singaporeans-not-having-a-bank-account#:text=It%20is%20estimated%20that%

273、20over,Singapore%20residents%20have%20bank%20accounts18 GlobalData.(2024,April 8).Payment cards account for 40%share in Singapore e-commerce payments market,reveals GlobalData.GlobalData.https:/ 2C2P.(2024,January 23).Popular payment methods in Singapore:What consumers want.https:/ LinkedIns Economi

274、c Graph.(2023).21 Ministry of Home Affairs MHA.(n.d.).E-commerce Marketplace Transaction Safety Ratings.https:/www.mha.gov.sg/e-commerce-marketplace-transaction-safety-ratings22 Research from multi-stakeholder interviews and roundtable discussions.23 Ganbold,S.(2024).Cashless payments adoption rate

275、in Southeast Asia in 2021,by country Dataset;Statista.https:/ Baharudin,H.(2018,November 26).Visa to partner Peoples Association to teach seniors about e-payment.The Straits Times.https:/ Hio,L.(2017,July 28).PA to launch new IT course for seniors in November.The Straits Times.https:/ Government Tec

276、hnology Agency of Singapore GovTech.(n.d.).Singpass.https:/www.tech.gov.sg/products-and-services/for-citizens/digital-services/singpass/27 Visa(n.d.)Tap to Phone:Contactless Payment for small businesses.https:/.sg/run-your-business/small-business-tools/tap-to-phone.html28 Enterprise Singapore ESG.(n

277、.d.).Microsoft Copilot for SMES programme.https:/www.enterprisesg.gov.sg/grow-your-business/boost-capabilities/productivity-and-digitalisation/microsoft-copilot-for-smes-programme29 Burrows,L.(2024,February 13).Using alternative credit data for credit underwriting.Experian Insights.https:/ Business

278、Times.(2021,October 27).Easing SMEs insurance needs through tech with BusinessPulse.The Business Times.https:/.sg/companies-markets/banking-finance/singapore-fintech-festival-2021/easing-smes-insurance-needs3131 Cloudflare.(n.d.).What is an attack vector?https:/ International Monetary Fund IMF.(2024

279、).Global Financial Stability Report:The Last Mile:Financial Vulnerabilities and Risks.International Monetary Fund.https:/www.imf.org/-/media/Files/Publications/GFSR/2024/April/English/ch1.ashx33 Lee,C.,&Ng,D.(2023,December 15).Digital fraud attack rate in Singapore higher than APAC average:Cybercrim

280、e report.CNA.https:/ Cyber Security Agency of Singapore CSA.(2023).Singapore Cyber Landscape 2022(W.Lim,L.Ho,G.Dong,C.Zeng,&A.Jia Xi,Eds.).Cyber Security Agency of Singapore.https:/www.csa.gov.sg/Tips-Resource/publications/2023/singapore-cyber-landscape-202235 Mohan,M.(2024,May 7).New law will requi

281、re owners of critical services to report wider range of cybersecurity incidents.CNA.https:/ Infocomm Media Development Authority IMDA.(n.d.-b).Cloud Computing.In IMDA.Infocomm Media Development Authority.https:/www.imda.gov.sg/-/media/imda/files/industry-development/infrastructure/technology/cloudco

282、mputing.pdf37 Surasit,N.(2024,February 29).Rogue replicants:Criminal exploitation of deepfakes in South East Asia.Global Initiative.https:/ International Monetary Fund IMF.(2024).Global Financial Stability Report:The Last Mile:Financial Vulnerabilities and Risks.International Monetary Fund.https:/ww

283、w.imf.org/-/media/Files/Publications/GFSR/2024/April/English/ch1.ashx39 Association for Financial Professionals AFP.(2024).2024 AFP Payments Fraud and Control Survey Report.https:/www.afponline.org/training-resources/resources/survey-research-economic-data/Details/payments-fraud40 Cyber Security Age

284、ncy of Singapore CSA.(2023b,June 23).Phishing and Ransomware Continue to Pose Significant Risks to Organisations and Individuals Drop Seen in Number of Infected Infrastructure Press release.https:/www.csa.gov.sg/News-Events/Press-Releases/2023/phishing-and-ransomware-continue-to-pose-significant-ris

285、ks-to-organisations-and-individuals-drop-seen-in-number-of-infected-infra41 Refer to introduction for cash vs cashless preferred methods of payment comparison.42 Monetary Authority of Singapore MAS.(2024).Money Laundering Risk Assessment Report Singapore 2024.In Monetary Authority of Singapore.Monet

286、ary Authority of Singapore.https:/www.mas.gov.sg/publications/monographs-or-information-paper/2024/money-laundering-national-risk-assessment43 Wintour,P.(2024,May 15).Nearly 40%of dirty money is laundered in London and UK crown dependencies.The Guardian.https:/ Leung,K.(2024,February 16).Hong Kong a

287、rrests 7 in$1.8 billion laundering case linked to transnational crime.AP News.https:/ SGTech defines digital trust as the“confidence participants have in the digital ecosystem to interact securely,in a transparent,accountable,and frictionless manner”|SGTech.(2022).Digital Trust|Unlocking the Next Wa

288、ve of Growth in the Digital Economy.In SGTech.https:/ Teo,C.(2023,October 16).Strengthening Trust in the Digital Domain.Singapore International Cyber Week(SICW)Summit 2023,Singapore.https:/www.pmo.gov.sg/Newsroom/SM-Teo-Chee-Hean-at-the-SICW-Summit-202347 Carousell.(n.d.).Singapore How does SingPass

289、 identity verification work?https:/ Visa.(n.d.).The transformative impact of tokenisation on commerce in Asia Pacific.https:/.sg/partner-with-us/payment-technology/visa-tokenisation/unpacking-payment-tokenisation.html49 Chua,N.(2022,September 9).Staff from 6 banks deployed at polices Anti-Scam Comma

290、nd office for faster response to cases.The Straits Times.https:/ Public Affairs Department,Singapore Police Force SPF.(2024,January 9).Anti-Scam Centre and four partnering banks utilize technology in Three-and-A-Half-Month-Long joint operation,successfully preventing scam losses of over$69.43 millio

291、n for more than 15,000 victims.Singapore Police Force.https:/www.police.gov.sg/media-room/news/20240109_anti_scam_centre_and_four_partnering_banks_utilize_technology51 Monetary Authority of Singapore MAS&Infocomm Media Development Authority IMDA.(2023,October 25).MAS and IMDA Consult on Shared Respo

292、nsibility Framework for Phishing Scams Press release.https:/www.mas.gov.sg/news/media-releases/2023/mas-and-imda-consult-on-shared-responsibility-framework-for-phishing-scams52 Ibid.53 Ministry of Home Affairs MHA&Singapore Standards Council SSC.(2022,May 14).INTRODUCTION OF E-COMMERCE MARKETPLACE T

293、RANSACTION SAFETY RATINGS AND REVISED TECHNICAL REFERENCE 76 ON E-COMMERCE TRANSACTIONS Press release.https:/www.enterprisesg.gov.sg/-/media/esg/files/media-centre/media-releases/2022/may/mr03022_introduction-of-e-commerce-marketplace-transaction-safety-ratings-and-revised-technical-reference-76-on-

294、e-commerce-transactions.pdf54 QBE Singapore.(2024,April 23).Less than half of SMEs fully aware of cyber risks,while the number without protection grows,finds QBE Singapore annual SME survey Press release.https:/ Cyber Security Agency of Singapore CSA.(2024,March 28).CSA Releases Key Findings from Si

295、ngapore Cybersecurity Health Report 2023 Press release.https:/www.csa.gov.sg/News-Events/Press-Releases/2024/csa-releases-key-findings-from-singapore-cybersecurity-health-report-202356 Monetary Authority of Singapore MAS.(n.d.-a).COSMIC.MAS.https:/www.mas.gov.sg/regulation/anti-money-laundering/cosm

296、ic57 Puthucheary,J.(2024,January 24).Speech by SMS Janil Puthucheary at the SCS Sustainable Tech Forum.SCS Sustainable Tech Forum,Singapore.https:/www.mddi.gov.sg/media-centre/speeches/speech-by-sms-janil-puthucheary-at-scs-sustainable-tech-forum/58 Rozite,V.,Bertoli,E.,&Reidenbach,B.(2023,July 11).

297、Data centres&networks.International Energy Agency.https:/www.iea.org/energy-system/buildings/data-centres-and-data-transmission-networks59 Schneider Electric.(2023,October 13).The AI disruption:Challenges and guidance for data center design.https:/ Chia,O.(2024,January 24).Fears of tech sectors envi

298、ronmental impact prompts$30m research into carbon-aware software.The Straits Times.https:/ Oracle.(2024,April 22).Oracle Cloud Service Enables Banks to Manage Climate Change Risk Across Portfolios Press release https:/ Lavi,H.(n.d.).Introducing the Climatiq Stripe App|Company&Product|Climatiq.https:

299、/www.climatiq.io/blog/introducing-climatiq-stripe-emissions-calculator-app63 DBS.(2021,April 15).DBS intensifies green push with nations first eco-friendly card.DBS Bank Singapore.https:/ Monetary Authority of Singapore MAS.(n.d.-c).Green FinTech.MAS.https:/www.mas.gov.sg/development/fintech/green-f

300、intech65 Monetary Authority of Singapore MAS.(2023,November 16).MAS Launches Digital Platform for Seamless ESG Data Collection and Access Press release.https:/www.mas.gov.sg/news/media-releases/2023/mas-launches-digital-platform-for-seamless-esg-data-collection-and-access66 Monetary Authority of Sin

301、gapore MAS.(2023a,June 22).UNDP,GLEIF and MAS to embark on Project Savannah to digitise basic ESG Credentials for MSMEs Press release.https:/www.mas.gov.sg/news/media-releases/2023/undp-gleif-and-mas-to-embark-on-project-savannah-to-digitise-basic-esg-credentials-for-msmes67 Keat,H.S.(2024,April 17)

302、.DPM Heng Swee Keat at the Founders Forum Asia.Founders Forum Asia,Singapore.https:/www.pmo.gov.sg/Newsroom/DPM-Heng-Swee-Keat-at-the-Founders-Forum-Asia68 World Intellectual Property Organisation WIPO.(n.d.).Singapore ranking in the Global Innovation Index 2023.Global Innovation Index 2023.https:/w

303、ww.wipo.int/gii-ranking/en/singapore69 Factors were taken from interviews and roundtable discussions which were raised by multinationals with a presence in Singapore.70 EIU.(2023,April 13).Singapore retains its position as the worlds best business environment for 15 consecutive years-Economist Intel

304、ligence Unit.Economist Intelligence Unit.https:/ International Institute for Management Development IMD.(2024).IMD World Competitiveness Yearbook 2024.https:/www.imd.org/wp-content/uploads/2024/06/WCY_Bookletv1_2024-1.pdf72 The International Bank for Reconstruction and Development IBRD&The World Ban

305、k.(2023).Connecting to Compete 2023:Trade Logistics in an Uncertain Global Economy.In IMF/World Bank.https:/lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report_with_layout.pdf73 IMD World Competitiveness Center.(n.d.).IMD World Digital Competitiveness Ranking 2023.In IMD World Competitiven

306、ess Center.https:/www.imd.org/wp-content/uploads/2023/12/Digital_2023.pdf74 Lanvin,B.,&Monteiro,F.(Eds.).(2023).The Global Talent Competitiveness Index 2023.In Institut Europen DAdministration Des Affaires.INSEAD.https:/www.insead.edu/system/files/2023-11/gtci-2023-report.pdf75 Intellectual Property

307、 Office of Singapore IPOS.(n.d.).Singapores global innovation ranking.IPOS.https:/www.ipos.gov.sg/resources/singapore-ip-ranking76 Z/Yen.(2023).The Global Financial Centres Index 33.In Financial Centre Futures.https:/ Monetary Authority of Singapore MAS.(n.d.-c).E-Payments.MAS.https:/www.mas.gov.sg/

308、development/e-payments#:text=MAS%20vision%20is%20to%20create,but%20also%20competition%20and%20innovation.&text=%22Our%20vision%20is%20to%20make,and%20perhaps%2C%20even%20inspiring.%2278 Monetary Authority of Singapore MAS.(n.d.-d).Financial Sector Technology and Innovation Scheme(FSTI 3.0).MAS.https

309、:/www.mas.gov.sg/schemes-and-initiatives/fsti-scheme79 Monetary Authority of Singapore MAS.(2023b).FSDF Annual Report 2022/2023.In MAS.Monetary Authority of Singapore.https:/www.mas.gov.sg/publications/financial-sector-development-fund-annual-report/2023/fsdf-annual-report-2022-202380 Infocomm Media

310、 Development Authority IMDA.(2024,May 17).Open Innovation Platform(OIP)-Infocomm Media Development Authority.IMDA.https:/www.imda.gov.sg/how-we-can-help/open-innovation-platform81 Monetary Authority of Singapore MAS.(n.d.-f).Overview of regulatory sandbox.MAS.https:/www.mas.gov.sg/development/fintec

311、h/regulatory-sandbox82 Monetary Authority of Singapore.(2023b).Orchid Blueprint:Infrastructure for safe and innovative use of digital money in Singapore.In Monetary Authority of Singapore.https:/www.mas.gov.sg/publications/monographs-or-information-paper/2023/orchid-blueprint83 Monetary Authority of

312、 Singapore MAS.(2023d,November 16).MAS Lays Foundation for Safe and Innovative Use of Digital Money in Singapore Press release.Retrieved from https:/www.mas.gov.sg/news/media-releases/2023/mas-lays-foundation-for-safe-and-innovative-use-of-digital-money-in-singapore84 Monetary Authority of Singapore

313、 MAS.(n.d.-e).FinTech and Innovation.https:/www.mas.gov.sg/development/fintech85 Tan,A.(2022,April 5).Reply to Parliamentary Question on“Buy Now Pay Later”Schemes.Parliament Sitting,Singapore.https:/www.mas.gov.sg/news/parliamentary-replies/2022/reply-to-parliamentary-question-on-buy-now-pay-later#:

314、text=For%20now%2C%20MAS%20has%20assessed,conduct%20for%20all%20BNPL%20providers86 Singapore FinTech Association.(2022,October 20).Buy Now,Pay Later(BNPL)Working Group launches BNPL Code of Conduct for Singapore Singapore FinTech Association.https:/singaporefintech.org/news/buy-now-pay-later-bnpl-wor

315、king-group-launches-bnpl-code-of-conduct-for-singapore/87 Monetary Authority of Singapore MAS.(2023d,November 16).MAS Lays Foundation for Safe and Innovative Use of Digital Money in Singapore Press release.https:/www.mas.gov.sg/news/media-releases/2023/mas-lays-foundation-for-safe-and-innovative-use

316、-of-digital-money-in-singapore88 Monetary Authority of Singapore MAS.(2022,October 31).Project Orchid Press release.https:/www.mas.gov.sg/schemes-and-initiatives/project-orchid89 Visa.(2023,November 21).Visa,UOB and Doxa transform payment processes for the construction industry Press release.https:/

317、.sg/about-visa/newsroom/press-releases/visa-uob-and-doxa-transform-payment-processes-for-the-construction-industry.html90 Brand Studio.(2024b,April 12).Optimising business operations with innovative payment solutions.CNA.https:/ Straits Times.(2023,March 9).ST-BT Budget 2023 roundtable with Lawrence

318、 Wong(L.Wong DPM/Finance Minister,A.Liew UOB,K.Thanaletchimi NTUC,&V.Khanna Straits Times,Interviewers)Video.YouTube.https:/ Kerber,W.,&Schweitzer,H.(2017).Interoperability in the Digital Economy.JIPITEC Journal of Intellectual Property,Information Technology and E-Commerce Law,3958.https:/ Monetary

319、 Authority of Singapore MAS.(n.d.-e).Foundational Digital Infrastructures for Inclusive Digital Economies.In MAS.https:/www.mas.gov.sg/-/media/MAS/Fintech/FDI/Foundational%20Digital%20Infrastructures%20for%20Inclusive%20Digital%20Economies.pdf94 Stripe.(2023,April 27).Expand your reach with cross-bo

320、rder payments2024 startup guide.https:/ Financial Stability Board FSB.(2023).G20 Roadmap for Enhancing Cross-border Payments.In Financial Stability Board.Financial Stability Board.https:/www.fsb.org/wp-content/uploads/P091023-2.pdf96 SWIFT.(2023,September 19).Visa and Swift team up to enhance transp

321、arency,speed and security in global B2B money movement Press release.https:/ Monetary Authority of Singapore MAS.(n.d.-b).Cross-border payment linkages.MAS.https:/www.mas.gov.sg/development/e-payments/cross-border-payment-linkages98 Banca DItalia Eurosistema,Bank Negara Malaysia BNM,Monetary Authori

322、ty of Singapore MAS,Project Nexus|Enabling instant cross-border payments:Conclusions from a technical proof of concept between the Eurosystem,Malaysia and Singapore.BIS Innovation Hub.https:/www.bis.org/publ/othp62.pdf99 Monetary Authority of Singapore MAS.(2024c,June 30).Project Nexus completes com

323、prehensive blueprint for connecting domestic instant payment systems globally and prepares for work towards live implementation Press release.https:/www.mas.gov.sg/news/media-releases/2024/project-nexus-completes-comprehensive-blueprint-for-connecting-domestic-ipses-globally100 Deloitte&Monetary Aut

324、hority of Singapore MAS.(n.d.).Project Ubin:SGD on Distributed Ledger.In Deloitte.https:/ Monetary Authority of Singapore MAS.(2022b,December 15).Ubin+:Advancing Cross-Border Connectivity with Wholesale Digital Currencies.Monetary Authority of Singapore.https:/www.mas.gov.sg/schemes-and-initiatives/

325、ubin-plus102 Monetary Authority of Singapore MAS&Bank for International Settlements BIS.(2023).Project Guardian:Enabling Open and Interoperable Networks.https:/www.mas.gov.sg/-/media/mas-media-library/development/fintech/project-guardian/project-guardian-open-interoperable-network.pdf103 SWIFT.(n.d.

326、).About ISO 20022.https:/ World Economic Forum WEF.(2023).Unlocking Interoperability:Overcoming Regulatory Frictions in Cross-Border Payments.In World Economic Forum.World Economic Forum.https:/www3.weforum.org/docs/WEF_Unlocking_Interoperability_2023.pdf105 Infocomm Media Development Authority IMDA

327、 and Ministry of Communications and Information MCI.(n.d.).Singapores Digital Connectivity Blueprint.https:/www.imda.gov.sg/-/media/imda/files/programme/digital-connectivity-blueprint/digital-connectivity-blueprint-report.pdf106 Infocomm Media Development Authority IMDA.(n.d.-d).TradeTrust.https:/ww

328、w.imda.gov.sg/how-we-can-help/international-trade-and-logistics/tradetrust107 Teo,J.(2024,February 1).Speech by Minister Josephine Teo at the 4th ASEAN Digital Ministers Meeting.4th ASEAN Digital Ministers Meeting,Singapore.https:/www.mddi.gov.sg/media-centre/speeches/speech-by-minister-josephine-te

329、o-at-4th-asean-digital-ministers-meeting/108 Association of Southeast Asian Nations(ASEAN).(2023).ASEAN Leaders Declaration on Advancing Regional Payment Connectivity and Promoting Local Currency Transaction.Press Release https:/asean.org/wp-content/uploads/2023/05/08-ASEAN-Leaders-Declaration-on-Re

330、gional-Payment-Connectivity-and-LCT_adopted.pdf109 ASEAN Economic Community(AEC).(2019).AEC 2025 Strategic Action Plans(SAP)For Financial Integration From 2016-2025.https:/cil.nus.edu.sg/wp-content/uploads/2019/02/2016-2025-SAP-for-Financial-Integration.pdf110 ASEAN Economic Community AEC.(2019).Pol

331、icy Guidelines of the ASEAN Payments Policy Framework for Cross-Border Real Time Retail Payments.In ASEAN Finance Cooperation Web Portal.https:/afcwp.asean.org/wp-content/uploads/2021/04/Annex-2.-Implementing-Policy-Guidelines-IPG.pdf111 Monetary Authority of Singapore MAS.(2024b,June 30).Project Ne

332、xus completes comprehensive blueprint for connecting domestic instant payment systems globally and prepares for work towards live implementation Press release.https:/www.mas.gov.sg/news/media-releases/2024/project-nexus-completes-comprehensive-blueprint-for-connecting-domestic-ipses-globally112 Chia

333、ng,S.(2023,November 16).Singapore to pilot use of wholesale central bank digital currencies in 2024.CNBC.https:/ International Chamber of Commerce World Business Organisation ICCWBO.(2022,June 21).Standards Toolkit for Cross-border Paperless Trade.ICC-International Chamber of Commerce.https:/iccwbo.org/news-publications/policies-reports/standards-toolkit-for-cross-border-paperless-trade/#anchor-do