Singapore has to accept risk of rogue actors to prosper as a wealth hub: Chee Hong Tat
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It is crucial to detect and deal with those rogue cases in a firm and decisive manner to give investors confidence, said Minister Chee.
PHOTO: LIANHE ZAOBAO
- Singapore must preserve its trusted business hub branding, balancing calculated risk-taking with firm action against rogue actors.
- Singapore aims to be more than a safe haven; it seeks to attract and support family offices, entrepreneurs, and philanthropy.
- ASEAN has untapped potential, especially in its digital economy and power grid, requiring regional integration for growth.
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SINGAPORE - Singapore must not lose its trusted branding as a business and wealth hub, but it is not realistic to take a zero-risk approach either, said Minister for National Development Chee Hong Tat.
Speaking at the Bank of Singapore’s 2026 outlook conference on Jan 8, Mr Chee, who is also deputy chairman of the Monetary Authority of Singapore, said there will be a chance of some rogue actors from time to time in any jurisdiction when embarking on a particular area.
But the number has to be kept small, he told an audience of around 900 mostly private banking clients at the event, held at Marina Bay Sands. “If the number grows too big, we have a problem. If we can do that (keep the number small), we can preserve that trust element and that trusted reputation while encouraging taking of calculated risk – what we call a risk-proportional approach – and encouraging innovation.”
It is also crucial to detect and deal with those rogue cases in a firm and decisive manner to give investors confidence, he noted.
“They choose Singapore because this is a place that can be trusted. This is a space that is stable, so we mustn’t lose that,” he said.
“If we end up compromising on our trusted branding, we have more to lose. So I would rather preserve that – but don’t go for zero risk, because then you have no leeway to be able to innovate, to try new ideas.”
When banks give out loans or do business with clients, they cannot be 100 per cent certain that there would be no errors either, he noted.
He said Singapore should not be only a place where it is safe to park money. It not only aims to attract family offices and entrepreneurs to grow ideas, talent and capital here, but also seeks to support those who wish to use Singapore as a philanthropy hub to do good and make a positive impact.
Mr Chee also touched on stablecoins, saying that the Republic should view the digital asset in a balanced and sensible manner
Stablecoins are a type of cryptocurrency that aims to maintain a stable value by being pegged to a certain asset, such as fiat currencies.
“So how can Singapore position itself to be able to enter this space, knowing that there will be competition, whether it is from Hong Kong, Dubai... We have to be quite clear-eyed about it. It doesn’t mean that we don’t do anything, but it also doesn’t mean that we want to do everything,” he said.
Singapore must not end up being pressured to do something out of a fear of missing out, because it may end up making the wrong decisions, he added.
Addressing the wider region, he said ASEAN still has many untapped opportunities, such as its digital economy not realising its full potential.
“The individual ASEAN economies will all want to have their own development plans. I think that’s fair... But it doesn’t mean that we cannot build or facilitate smooth flow of payments in the digital economy. It can be done,” he said.
“There’s still a lot of upside for us to further strengthen this.”
He also pointed to the ASEAN power grid initiative, saying that it will be a game changer if the region manages to carry it out successfully.
“The future of our economic development, whether it’s artificial intelligence centres, automation or manufacturing, you need clean, green power, and this is something which we won’t be able to optimise for the whole region if (we) all do (so) by ourselves, but we really look at how we can integrate and do it together,” he said.
He also noted that the Johor-Singapore Special Economic Zone has allowed Johor and Singapore to look at a win-win outcome, but it should not be limited to just companies from Johor shifting to Singapore, or Singapore companies shifting to Johor.
“That’s not growth. That’s just reallocation. We should really be working together to try and attract new investments – investments that will otherwise not even consider coming to this part of the world.”
The tie-up between Johor and Singapore will offer investors the best of both worlds, he said, adding that many such opportunities in ASEAN are still untapped.
