The MAS was founded in 1971 to oversee various monetary functions associated with banking and finance. Before its establishment, monetary functions were performed by government departments and agencies. The acronym for its name resembles mas, the word for 'gold' in Malay, Singapore's national language – although it is not pronounced in the same way. As Singapore progressed, an increasingly complex banking and monetary environment required more dynamic and coherent monetary administration. Therefore, in 1970, the Parliament of Singapore passed the Monetary Authority of Singapore Act leading to the formation of MAS on 1 January 1971. The act gives MAS the authority to regulate all elements of monetary policy, banking, and finance in Singapore. During the COVID-19 pandemic MAS brought forward its twice yearly meeting from some time in April to 30 March. The MAS decided to ease the Singapore dollar's appreciation rate to zero percent, as well as adjust the policy band downwards, the first such move since the Global Financial Crisis. This makes it the first time the MAS had taken these two measures together.
However, unlike many other central banks such as Federal Reserve System or Bank of England, MAS does not regulate the monetary system via interest rates to influence the liquidity in the system. Instead, it chooses to do it via the foreign exchange mechanism, which it has been doing since 1981. In doing so it manages the Singapore dollar versus a number of currencies that they do not reveal publicly - a Singapore dollar nominal effective exchange rate. It carries this out by intervening in the SGD market as well as other operations in the money market. The MAS reviews its policy stance less frequently than most central banks, in a cycle that is around every 6 months.
Policy decisions
30 March 2020: zero percent per annum rate of appreciation, starting at the prevailing level with no change in width. 14 October 2019: slightly reduce rate of appreciation, with no change in width. 12 April 2019: unchanged rate of appreciation of SGD NEER band; no change to width and the level at which it is centred. 12 October 2018: slightly increase rate of appreciation of SGD NEER band; no change to width and the level at which it is centred. 13 April 2018: slightly increase rate of appreciation of SGD NEER band; no change to width and the level at which it is centred. 13 October 2017: zero percent rate of appreciation of SGD NEER band; no change to width and the level at which it is centred. 13 April 2017: zero percent rate of appreciation of SGD NEER band; no change to width and the level at which it is centred. 14 October 2016: zero percent rate of appreciation of SGD NEER band; no change to width and the level at which it is centred. 2 January 2002: zero percent rate of appreciation of SGD NEER band; width narrowed. 10 October 2001: zero percent rate of appreciation of SGD NEER band; width widened. 12 July 2001: zero percent rate of appreciation of SGD NEER band. 10 April 2001: gradual modest appreciation rate of appreciation of SGD NEER band. 22 February 2001: gradual modest appreciation rate of appreciation of SGD NEER band.
Issuing Banknotes and Coins
Following its merger with the Board of Commissioners of Currency on 1 October 2002, the MAS assumed the function of currency issuance. MAS has the exclusive right to issue banknotes and coins in the Republic of Singapore. Their dimensions, designs and denominations are determined by the Monetary Policy Committee with Government approval. The banknotes and coins thus issued have the status of legal tender within the country for all transactions, both public and private, without limitation.
Singapore FinTech Festival(SFF)
MAS organises Singapore FinTech Festival annually in partnership with The Association of Banks in Singapore and in collaboration with SingEx Holdings. SFF is the largest FinTech festival in the world and connects the FinTech community around the world to interact with each other.
