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Singapore commits $500 million to accelerate Asia’s clean energy transition

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Singapore’s FAST-P program targets green growth is Asia amid global uncertainty. (Image: Green Plan)

In a move to lower investment risks in energy transition, the Singaporean government plans to invest USD 500 million through a blended finance approach to support industrial decarbonization and clean energy adoption. The initiative aims to accelerate sustainable development across Asia, with a dedicated office expected to launch within months.

FAST-P focuses on 3 key areas, starting with green investments

On May 7, Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS), spoke at the Ecosperity Week sustainability forum hosted by Temasek Holdings, where he shared updates on the Financing Asia’s Transition Partnership (FAST-P).

Launched in 2023, FAST-P is Singapore’s transition finance initiative aiming to deploy USD 500 million in catalytic capital. It plans to match this with private-sector funds on a 1:1 basis, offering below-market financing to help develop clean energy infrastructure across Asia. With support from additional partners, the program ultimately targets raising USD 5 billion.

FAST-P’s funding will be directed toward three main objectives: accelerating the shift from fossil fuels to clean energy, increasing green investment, and decarbonizing high-emission industries such as cement and steel. According to Chia, the green investment component will roll out first, although he did not provide further details.

MAS previously stated this will primarily involve projects in renewable energy generation and storage, electric vehicles, transportation, and water and waste management.

60% of green investment concentrated in Singapore and Malaysia

Chia emphasized that growing global economic and trade uncertainty has made businesses more cautious with investments—highlighting the essential role of the finance and insurance sectors.

He added that many financial institutions in Singapore have already factored climate risk into asset allocation strategies, identifying emerging investment and financing opportunities in the process.

In addition, the Singapore Sustainable Finance Association released a white paper during the event, stating that initiatives aimed at reversing and restoring nature could generate USD 4.3 trillion in value and 232 million jobs in Asia.

Singapore is already a key hub for green investment in Southeast Asia. According to the Southeast Asia’s Green Economy 2025 report—jointly published by Bain & Company, Temasek, its green investment arm GenZero, Google, and Standard Chartered—over 62% of green investments in Southeast Asia are concentrated in Singapore and Malaysia, with solar energy being the dominant focus.

(Source: Bain & Company)

Source: The Straits Times(1)(2)Bain & Company

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