Speech by 2M Tan See Leng at the Opening of Sea’s Digital Finance Headquarters and 16th Anniversary Celebration

Mr Forrest Li, Chairman and CEO of Sea Limited,

Distinguished guests,

Ladies and gentlemen,

1. Good morning. I am delighted to join you today for the opening of Sea’s Digital Finance Headquarters.

2. Today, we celebrate not only Sea’s 16^th Anniversary as a group, but also the rebranding of its digital finance business from SeaMoney to Monee.

3. This is a significant milestone in Sea’s history. From a gaming start-up in 2009, Sea has built itself up to become a regional technology powerhouse built on three core pillars, namely:

   1. Garena – one of the most successful digital entertainment platforms in Asia, known for its development of the ‘Free Fire’ mobile game;

   2. Shopee – one of Southeast Asia’s top e-commerce platforms, providing consumers with a wide variety of online shopping options, and offering retailers in the region a springboard to access new markets; and lastly,

   3. Monee – a leading digital financial services provider in the region. It owns MariBank, a digital bank providing services tailored to both personal and SME needs.

4. Today, Sea is the largest listed technology company by market value in Southeast Asia. Its growth story is a fitting symbol of the rise of the digital economy in our region, with strong potential in the years to come.

   1. According to a report by Google, Temasek and Bain, there are currently more than 460 million Internet users in Southeast Asia, and we expect an additional 100 million to come online by 2030. This will drive demand for many businesses in the digital realm, across e-commerce, travel, and online media.

   2. Recent developments in AI have also opened up new opportunities for investments in both hardware and software, such as those found in data centres.

   3. And through the ASEAN Digital Economy Framework Agreement, Singapore is working with ASEAN Member States to unlock more value in this space.  We are working to align on digital rules and standards, and support cross-border data flows.

5. Opportunities abound in the digital economy, but one key area of growth which Sea has astutely ventured into is digital finance.

   1. For example, the transaction value in digital payments within Southeast Asia grew by about 15% last year, reaching a high of $1.1 trillion¹. This is expected to double by 2030, thanks to more partnerships between e-wallet providers and major payment card networks, as well as greater cross-border payment connectivity.

   2. Digital lending in the region is also expected to grow to about $200 billion by 2030, up from about $70 billion last year, in part given stronger credit management practices by lending platforms.

6. Sea has achieved early successes in tapping the market potential in digital finance. Their experience is one which is worth taking a leaf from, especially for homegrown companies looking to grow in our thriving financial services industry. I will outline three ways through which Sea has strengthened its competitiveness, and how these work hand-in-glove with the Government’s efforts to take the industry to its next growth peak.

7. First, by offering user-centric solutions for individuals and businesses.

   1. The individual savings account by Maribank – one of Sea’s subsidiary – is a good example.

      1. Unlike many other banks, Maribank does not require any minimum deposit or spending to start earning a competitive interest rate. This allows the bank to serve individuals who may not be able to meet certain conditions such as maintaining a minimum balance, or making minimum transactions imposed by other service providers. Its daily interest crediting feature also provides an incentive for individuals to save.

   2. SMEs who require access to financing options are also benefitting from MariBank’s services.

      1. Many of us are familiar with ‘Fish & Co’, a homegrown restaurant chain in Singapore. When Fish & Co was setting up a new outlet, MariBank provided working capital financing to help with the company’s cash flow.

      2. The entire loan application process was done seamlessly online, without the need for any manual paperwork or branch visits.

      3. This is a good example of how MariBank can make a meaningful difference to small businesses by making access to financing convenient and seamless for SMEs.

8. Second, Sea’s expansion in the region has helped strengthen cross-border financial connectivity within Southeast Asia.

   1. Today, Sea has an established footprint in Southeast Asia, with its slate of banking, e-payment, micro-lending, and insurance services.

      1. For instance, MariBank’s overseas transfer service allows the transfer of funds in 10 different currencies across 13 destinations. SMEs in Singapore can pay their invoices in different currencies to suppliers from different countries; and individuals can make transfers easily to their family and friends overseas.

      2. More broadly, these advancements in cross-border payment connectivity also support our move towards greater regional integration, which has taken on new significance following the US’ ‘Liberation Day’ tariffs.

   2. On the Government’s part, we will continue to work with like-minded partners to deepen connectivity.

      1. To date, the Monetary Authority of Singapore, or MAS, has signed close to 40 FinTech Co-operation Agreements, or CAs, with our international counterparts to foster cooperation on FinTech.

      2. These CAs also provide the foundation to connect our PayNow services with the QR and fast payment systems of other countries.

      3. We have established bilateral payment linkages with four countries thus far – namely, India, Indonesia, Malaysia, and Thailand. More recently, we also upgraded our CA with Vietnam, with a view to set up a bilateral QR payment linkage.

      4. With these linkages, users in Singapore who travel to, or have businesses in these jurisdictions are now able to benefit from faster, safer, cheaper modes of payments and fund transfers.

      5. Moving ahead, we want to scale these efforts beyond bilateral linkages. Through Project Nexus, MAS is partnering banks and operators to develop a multilateral real-time payment network that links multiple domestic payment systems at scale. The aim is to grow this into a global public payments utility that connects ASEAN to the world.

9. Third, Sea constantly breaks new grounds and is anchoring key innovation capabilities in Singapore.

   1. I was told that Monee – the financial services provider within Sea – will site several Centres of Excellence in Singapore, covering domains such as product management and design, risk management and compliance, to anti-money laundering and fraud.

   2. These CoEs deepen Singapore’s expertise in domains that will take on greater importance in the industry, as nefarious activities become more sophisticated.

      1. Already, MariBank has developed a system called SEAMLESS, which leverages AI and advanced data analytics to conduct risk profiling for anti-money laundering and counter-terrorism financing efforts.

      2. Such capabilities are key in protecting our financial system from misuse, and in ensuring Singapore remains a trusted international financial centre and business hub.

   3. In the spirit of encouraging similar ventures, MAS announced a $100 million commitment under the Financial Sector Technology and Innovation Grant Scheme last year, to support financial institutions in quantum and AI-related innovation and adoption. For those with ideas to test-bed but require funding support, I encourage you to take up this scheme.

10. In closing, allow me to congratulate Sea on this milestone in your growth journey.

11. As we look towards a new global economic order, it is ever more important that Singapore continues to nurture and anchor enterprises like Sea – one that reinforces our position as a hub for ideas, talent and investments, and opens up new opportunities for our economy and our people.

12. Thank you.

[1] Google, Temasek, Bain & Company. E-conomy sea 2024 report. Google. https://economysea.withgoogle.com/home/ . Slide 34. This statistic refers to the Gross Transaction Value.