To boost new start-ups and attract more Venture Capitalists (VCs), Monetary Authority of Singapore (MAS) announced that it will simplify the authorisation process and relax the regulations for the VCs. It is being done to promote financing for enterprise development.
The central bank will waive some requirements to reduce unnecessary compliance costs and administrative burden. These include removal of base capital requirements and risk-based capital requirements, as well as requirements for independent valuation, internal audits and submission to MAS of audited financial statements.
A press release issued by MAS stated, “Under the proposed simplified authorisation process, MAS will focus primarily on fitness and propriety assessment of the VC managers. MAS will not require VC managers to have directors and representatives with at least five years of relevant experience in fund management. New VC managers can expect a much shortened application process.”
It further added, “The base capital requirements and risk-based capital requirements will be removed and the requirement for independent valuation, internal audits and submission to MAS of audited financial statements will not be imposed.”
Welcoming the MAS gesture, Dr Jeffrey Chi, chairman of Singapore Venture Capital and Private Equity Association said, “I would certainly expect that with more venture capital available, more funding would be available for Singapore firms. A spillover effect is that many companies across the region would more seriously consider basing their headquarters in Singapore.