Starting a financial services or fintech business in Singapore: key things foreign investors should know

Singapore’s financial sector is vital, heavily regulated, and attracts foreign investment. Licensing depends on activities under the Payment Services Act, Securities and Futures Act, or Financial Advisers Act.

Singapore’s Financial Sector Overview

Singapore remains a top financial hub in Asia, attracting foreign investments across banking, asset management, fintech, and digital financial services. The sector accounts for approximately 14% of the country’s GDP and employs around 200,000 professionals. By the end of 2025, Singapore managed assets totaling S$6.7 trillion (US$5.2 trillion). When entering this market, foreign investors must first determine if their activities align with Singapore’s financial regulations, influencing licensing needs and legal structuring.

Regulatory Framework for Payment and Investment Services

The Payment Services Act 2019 (PSA) oversees a range of payment-related activities, including money transfers, e-money issuance, and digital token services. Businesses engaging in these activities require either a Standard or Major Payment Institution license, depending on their scale. Investment activities, such as fund management or dealing in capital markets, are regulated under the Securities and Futures Act 2001 (SFA), often necessitating a Capital Markets Services (CMS) license unless exemptions apply. Financial advisory services also require licensing under the Financial Advisers Act 2001 (FAA).

Licensing and Market Entry Strategies

Most foreign investors establishing regulated financial services in Singapore opt for a subsidiary, which simplifies licensing procedures. Branch offices are permissible for certain institutions, while representative offices are limited to non-commercial activities. Capital requirements and prudential standards vary based on the scope of financial services offered, influencing the investment’s prudence and feasibility. Proper licensing ensures compliance and smooth market entry.

Read the original article : Launching a Financial Services or Fintech Business in Singapore: What Foreign Investors Need to Know

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