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Monetary Authority of Singapore
ANNUAL REPORT 2015/16
Annual Report 2015/16
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Monetary Authority of Singapore
Annual Report 2015/16
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Monetary Authority of Singapore
ANNUAL REPORT 2015/16
CONTENTS
05 Chairman’s Message
08 Board of Directors
10 Management Team
11 Governance Structure
12 Board Committees
13 Organisational Structure
14 Key Economic and Financial Statistics
16 Number of Financial Institutions
in Singapore
ANCHOR OF ECONOMIC AND
FINANCIAL STABILITY
20 20 20 21
21 22 22 THE ECONOMY
Subdued Growth in the Global Economy
A Moderate G3 Recovery
Slowdown in Asia Ex-Japan
Heightened Financial Vulnerabilities and Risks
Low Global Inflation
Singapore’s Economic Growth Moderated
in 2015
23 Inflation Fell Due To Lower Oil Prices
24 MONETARY POLICY
26 MACROPRUDENTIAL POLICY
26 MANAGEMENT OF LIQUIDITY
26 Enhancing MAS’ Standing Facility
26 Renewal of the MAS-People’s Bank of China
Currency Swap
27 MANAGEMENT OF OFFICIAL FOREIGN
RESERVES
27 Investment Performance
2
Monetary Authority of Singapore
ROBUST, TRUSTED, DYNAMIC AND
PURPOSEFUL FINANCIAL CENTRE
32
32 32 33
33
34 A ROBUST FINANCIAL CENTRE
Industry Tests
Enhancing the Resolution Regime
Banking
International Supervisory Cooperation
Securities, Futures and Over-the-Counter
Derivatives
36 Enforcement
37 Sectoral Security Operations Centre
37 Insurance
37 A TRUSTED FINANCIAL CENTRE
37 Preventing Money Laundering and
Terrorism Financing
38 Closure of BSI Bank Limited
39 Enhancing Exchange of Tax Information
Framework
39 Box 1: Dedicated Departments to Combat
Money Laundering and Strengthen Enforcement
39 A DYNAMIC AND PURPOSEFUL
FINANCIAL CENTRE
39 Financial Sector Growth Remains Resilient
40 Strengthening Capital Markets and Increasing
Product Diversity
41 Enhancing the RMB Ecosystem
41 Strengthening Infrastructure Financing
41 Harnessing Technology and Innovation
42 Box 2: Formation of the FinTech
& Innovation Group
44 Developing Globally Competitive Talent
45 Box 3: Unlocking Long Term Financing for
Infrastructure
46 Box 4: Formation of the Financial Sector
Tripartite Committee
SERVING THE PUBLIC, ENGAGING
STAKEHOLDERS
ONE MAS: INTEGRATED AND
COHESIVE
50 50 51
52
53
70 CELEBRATING 45 YEARS
70 Box 10: The MAS Gallery
72 Box 11: 45 Years in MAS: An Interview with
Sapuan and Zainal
SERVING THE PUBLIC
Managing Dollars and Cents
Box 5: SG50 Commemorative Currency
MoneySENSE
Box 6: Promoting Financial Literacy Through
Island-wide Campaigns
55 Facilitating Retail Access to Simple Low-cost
Investment Products
56 PROTECTING CONSUMERS
56 Financial Advisory Industry Review
56 Encouraging Prudent Borrowing and
Lending Behaviour
57 Enhancing Prospectus Disclosure Rules for
Securities Offers
57 PARTNERING ACADEMIA
58 Box 7: MAS Term Professorship in Economics
and Finance at the National University
of Singapore
VALUED PARTNER ON THE
INTERNATIONAL FRONT
62 62 63 63 INTERNATIONAL FINANCE
International Financial Regulatory Reforms
International Cooperation
Promoting Global Growth and Stability
63
63
63
64
REGIONAL FORUMS
ASEAN Financial Integration
ASEAN+3
Executives’ Meeting of East Asia-Pacific
Central Banks
64
64 64
65 TECHNICAL COOPERATION
Regional and Bilateral Training
IMF-Singapore Regional Training Institute
Box 8: MAS Hosts Three High-Level
Conferences
66 Box 9: ASEAN Financial Regulators’ Executive
Programme
74 RISK MANAGEMENT AND BUSINESS
CONTINUITY
74 Business Continuity, Disaster Recovery and
MEPS+ Resiliency
74 International Operational Risk Working Group
74 Financial Industry Security Programme
74 MAS’ Whistleblowing Policy
74 74
75 75
75
CONTROLS AND OPERATIONS
Audit Assurance
Procurement Management
Security and Fire Safety
Building Services and Infrastructure
75 ENHANCING PRODUCTIVITY AND BUILDING
CAPABILITIES
75 Staff Mobility and Productivity
75 Reinforcement of MAS’ IT Security Infrastructure
75 Data Governance and Analytics
76 76
76 78
79
79
79 BUILDING A STRONG MAS FAMILY
Employee Engagement Survey
Bringing Our People Closer, Celebrating SG50
People Development
Leadership Development
Recognition of Staff
Partnership with Union
81 FINANCIAL STATEMENTS
113 STATISTICAL ANNEXES
134 GLOSSARY
Annual Report 2015/16
3
WHAT
WE DO
Our Mission
To promote sustained non-inflationary economic growth, and
a sound and progressive financial centre
Our Functions
• To act as the central bank of Singapore, conducting
monetary policy, issuing currency, overseeing the payment
systems, and serving as banker to and financial agent of
the Government
• To manage the official foreign reserves of Singapore
• To conduct integrated supervision of the financial sector and
financial stability surveillance
• To develop Singapore as an international financial centre
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Monetary Authority of Singapore
CHAIRMAN’S
MESSAGE
This year’s MAS Annual Report comes at a time
of heightened uncertainty around the world.
Global growth is generally weak. The recovery
in the advanced economies is hesitant and
uneven despite extraordinarily accommodative
monetary policies, and hampered in several
instances by a weakened political consensus
on future directions. In Asia too, the momentum
of growth is slowing, amid a multi-year
restructuring of the Chinese economy, lacklustre
demand in key export markets and the slow
pace of domestic reforms in some economies.
The unpredictable consequences of the UK
vote to leave the European Union further dented
confidence globally.
MAS’ monetary and financial policies aim to
preserve stability and confidence in the future
amidst global economic fragility, and the
generally soft inflation environment.
Against the weak external environment, the
Singapore economy is projected to expand by
1–3% this year. Selected clusters of trade-related
activities will continue to expand alongside
regional growth. Among the domesticallyoriented sectors, there is steady demand in
infrastructure and for healthcare and education.
“MAS’ monetary and financial policies
aim to preserve stability and confidence
in the future amidst global economic
fragility, and the generally soft inflation
environment.”
Inflation remains subdued. Headline inflation
has been negative for some time but could
turn positive towards the later part of this year.
MAS Core Inflation, which excludes the costs
of accommodation and private road transport,
is also anticipated to rise gradually over the
course of 2016. However, the increase in core
inflation will be dampened by weaker external
growth and reduced tightness in Singapore’s
labour market.
Since 2009, MAS has strengthened existing
rules on property financing and introduced new
measures to ensure stability in the property
market and to encourage financial prudence
among borrowers. A full-scale property bubble
has been averted, and property prices are
declining at a measured pace. MAS will continue
to monitor the property market, together with
other government agencies.
“Against the weak external environment,
the Singapore economy is projected to
expand by 1–3% this year. Selected
clusters of trade-related activities will
continue to expand alongside regional
growth.”
In April 2016, MAS set the rate of appreciation of
the Singapore dollar nominal effective exchange
rate (S$NEER) policy band at zero percent. The
move represented the culmination of a series
of measured steps MAS had taken to reduce
the rate of appreciation of the policy band in
January and October last year. It recognised
the subdued inflation outlook over the next
year, while ensuring price stability into the
medium term.
We have continued to keep a close watch on risk
management practices and culture in Singapore’s
financial sector. A thematic inspection of banks’
credit underwriting standards showed that
practices were generally sound. As part of ongoing
efforts to strengthen the resilience of the financial
system, MAS has put out proposals to enhance
its powers to facilitate the orderly and efficient
resolution of distressed financial institutions.
Annual Report 2015/16
5
CHA IRMAN’S MESSA GE
Singapore’s financial centre is built on a
bedrock of trust and integrity. MAS requires
financial institutions to have robust controls
in place to prevent money laundering and
terrorism financing and will not hesitate to take
actions against financial institutions which fail
to meet requirements. In 2015, MAS issued
reprimands to several financial institutions and
imposed financial penalties for deficiencies
in their controls. On 24 May 2016, MAS
ordered a merchant bank to be shut down for
serious breaches of anti-money laundering
requirements.
We have introduced several initiatives to safeguard
investors’ interests while expanding their savings
and investment options. MAS refined its rules to
make it easier for eligible corporates to offer bonds
to retail investors. Together with the Ministry of
Finance, we introduced the Singapore Savings
Bonds programme to provide Singaporeans with
a safe, long-term savings option. More recently,
MAS set out its regulatory approach to securitiesbased crowdfunding. It aims to facilitate access
by start-ups and small and medium enterprises
to alternative platforms for raising funds, while
ensuring sufficient safeguards for investors.
Supporting MAS’ efforts to safeguard consumer
interest are on-going financial education
programmes by the national financial education
programme, MoneySENSE. A series of
educational campaigns carried in both traditional
and new media helped to drive home important
financial literacy messages, such as using credit
wisely and saving and investing early.
Despite the headwinds to global growth over
the past year, the Singapore financial sector
continued to perform well and was a major
contributor to overall economic growth. MAS is
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Monetary Authority of Singapore
working with the industry to facilitate the flow
of long-term funds to support infrastructure
development, especially in the Asian region.
This includes work to facilitate the transfer of
bank financing of infrastructure to institutional
investors, and the creation of performance
benchmarks to allow investors to better assess
the risks and returns of infrastructure projects.
As part of the national SkillsFuture agenda, MAS
and the National Trades Union Congress (NTUC)
have led the Financial Sector Tripartite Committee
(FSTC). The FSTC brings together the industry
associations, government and labour movement,
to foster a versatile financial sector workforce,
well-equipped to embrace the opportunities
and future needs of the financial industry.
We are also developing a Smart Financial Centre
that leverages effectively on technology. In August
2015, MAS formed a new Financial Technology
and Innovation Group to catalyse the growth of a
vibrant FinTech ecosystem. Several global financial
institutions have since established innovation labs
in Singapore to develop and test bed new products
for the region. We are also seeing progress in the
adoption of electronic payments in Singapore.
These efforts involve streamlining payment card
acceptance infrastructure at merchants through
unified Points-of-Sale (POS) terminals, and
increasing the adoption of real-time payments
through the Fast and Secure Transfers (FAST)
system.
“Despite the headwinds to global
growth over the past year, the Singapore
financial sector continued to perform
well and was a major contributor to
overall economic growth.”
CHAIRMA N’S ME S S AG E
This year marks MAS’ 45th anniversary. Over
the years, MAS has become highly regarded
internationally, both as a central bank and an
integrated financial regulator. Singapore is also
ranked among the leading financial centres in the
world today. In February 2016, we launched the
MAS Gallery, with the aim of helping the public
understand the mission and roles of the MAS.
It also reflects the outcomes of the hard work
and professional expertise of MAS staff over the
years, in promoting the growth and stability of
the Singapore economy and financial system.
On behalf of the Board, I would like to thank all
MAS staff, past and present, for their invaluable
contributions to building a credible central bank
and financial regulator.
Tharman Shanmugaratnam
Chairman
Annual Report 2015/16
7
BOARD OF
DIRECTORS
Tharman Shanmugaratnam
Deputy Chairman
Minister for Trade and Industry (Trade)
Heng Swee Keat
Lawrence Wong Shyun Tsai
Minister for Finance
Lim Chee Onn
Chairman of Risk Committee
Senior International Advisor,
Ascendas-Singbridge Group
8
Lim Hng Kiang
Chairman
Deputy Prime Minister and Coordinating
Minister for Economic and Social Policies
Monetary Authority of Singapore
Minister for National Development
Quek See Tiat
Chairman of Audit Committee
Deputy President,
Council for Estate Agencies
BOA RD OF DIRECTOR S
Peter Ong Boon Kwee
Head of Civil Service and Permanent Secretary
(Prime Minister’s Office) (Strategy)
V K Rajah
Attorney-General,
Attorney-General’s Chambers
Tan Chorh Chuan
President,
National University of Singapore
Ravi Menon
Managing Director,
Monetary Authority of Singapore
SENIOR ADVISOR TO MAS
Goh Chok Tong
Emeritus Senior Minister
Annual Report 2015/16
9
MANAGEMENT
TEAM
I
L
G
F
J
A
K
Managing Director
B. Ong Chong Tee
Deputy Managing Director
Financial Supervision
C. Jacqueline Loh
Deputy Managing Director
Monetary Policy & Investment
/ Development & International
/ FinTech & Innovation
D. Andrew Khoo
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Deputy Managing Director
Corporate Development
Monetary Authority of Singapore
H
C
B
A. Ravi Menon
E
D
E. Chia Der Jiun
I. Low Kwok Mun
F. Chua Kim Leng
J. Ng Nam Sin
G. Lee Boon Ngiap
K. Edward Robinson
Assistant Managing Director
Markets & Investment
Assistant Managing Director
Banking & Insurance
Assistant Managing Director
Capital Markets
H. Leong Sing Chiong
Assistant Managing Director
Development & International
Assistant Managing Director
Finance, Risk & Currency
Assistant Managing Director
Corporate, HR & IT Services
Assistant Managing Director
and Chief Economist
Economic Policy
L. Wong Nai Seng
Assistant Managing Director
Policy, Risk & Surveillance
GOVERNANCE
STRUCTURE
The Board is responsible for the high-level governance of MAS. The Board Committees exercise broad
oversight and approve major changes to policies and strategies relating to the principal functions of MAS.
The Managing Director is responsible for the day-to-day operations of MAS and is assisted by various
groups and management committees. The Executive Committee is the key decision making body at the
management level. Chaired by the Managing Director, it is responsible for ensuring that MAS’ policies and
initiatives are aligned with its overall direction and objectives. The Executive Committee also oversees
matters referred to it by other management fora.
Board and Board Committees
MAS
Board
Chairman’s
Meeting
Monetary and
Investment
Policy
Meeting
Audit
Committee
Risk
Committee
Staff
Committee
Management Committees
Executive
Committee
Payment
Systems and
Technology
Development
Steering
Group
Data
Committee
IT Steering
Committee
Management
Committee
Financial
Stability
Committee
Financial
Supervision
Committee
Development
and
International
Committee
Markets and
Investment
Committee
Technology
and Innovation
Steering
Committee
Payment and
Settlement
Committee
MASCAD Joint
Investigation
Panel
Staff
Committee I
Staff
Committee II
Human
Resource
Committee
Annual Report 2015/16
11
BOARD
COMMITTEES
The MAS Act provides that the Board of Directors shall be responsible for the policy and general
administration of the affairs and business of MAS. The Board is assisted by the following committees:
CHAIRMAN’S MEETING
The Chairman’s Meeting approves major changes to MAS’ supervisory policies and regulatory framework.
It also approves major changes to policies and strategies relating to financial centre development and
international and regional relations. The Chairman’s Meeting comprises Tharman Shanmugaratnam
(Chairman), Lim Hng Kiang, Heng Swee Keat, Lawrence Wong and Ravi Menon.
MONETARY AND INVESTMENT POLICY MEETING
The Monetary and Investment Policy Meeting deliberates and decides on issues relating to the formulation
and implementation of monetary policy with the objective of maintaining price stability for sustained
economic growth. The Meeting also oversees the investment of MAS’ reserves. The Monetary and
Investment Policy Meeting comprises Tharman Shanmugaratnam (Chairman), Lim Hng Kiang, Heng
Swee Keat, Lawrence Wong and Ravi Menon.
AUDIT COMMITTEE
The Audit Committee provides an independent assessment of MAS’ internal controls and financial
reporting process. The Committee also reviews the efforts of MAS’ internal and external auditors. The
Audit Committee comprises Quek See Tiat (Chairman), Peter Ong and Tan Chorh Chuan.
RISK COMMITTEE
The Risk Committee provides oversight and guidance on the management of risks faced by MAS. The
Committee oversees the MAS-wide risk management framework, and reviews MAS’ risk management
policies and processes for reporting of risks. The Risk Committee comprises Lim Chee Onn (Chairman),
Tan Chorh Chuan, V K Rajah and Ravi Menon.
STAFF COMMITTEE
The Staff Committee approves MAS’ key personnel policies, including overall remuneration policy. It also
approves matters relating to the appointment, promotion and remuneration of senior management staff.
The Staff Committee comprises Tharman Shanmugaratnam (Chairman), Lim Hng Kiang, Heng Swee
Keat and Ravi Menon.
As at 1 July 2016
12
Monetary Authority of Singapore
ORGANISATIONAL
STRUCTURE
Ravi Menon
Managing Director
MANAGING DIRECTOR’S OFFICE
Corporate Planning
and Communications
Merlyn Ee
Legal
Ng Heng Fatt
Internal Audit
Timothy Ng
General Counsel
Executive Director
Executive Director
MONETARY POLICY &
INVESTMENT / DEVELOPMENT
& INTERNATIONAL / FINTECH
& INNOVATION
Jacqueline Loh
FINANCIAL SUPERVISION
Ong Chong Tee
CORPORATE DEVELOPMENT
Andrew Khoo
BANKING & INSURANCE
Chua Kim Leng
ECONOMIC POLICY
Edward Robinson
Assistant Managing Director
CORPORATE, HR & IT SERVICES
Ng Nam Sin
Banking I
Loo Siew Yee
Corporate Services
Bernard Yeo
Economic Analysis
Choy Keen Meng
Banking II
Tan Keng Heng
Information Technology
Lawrence Ang
Economic Surveillance
& Forecasting
Celine Sia
Banking III
Tai Boon Leong
Human Resource
Susanna Lee
Insurance
Lee Keng Yi
MAS Academy
Ng Nam Sin
Deputy Managing Director
Assistant Managing Director
and Chief Economist
Executive Director
Executive Director
Special Projects
Lam San Ling
Executive Director
MARKETS & INVESTMENT
Chia Der Jiun
Assistant Managing Director
Monetary & Domestic Markets
Management
Cindy Mok
Director
Reserve Management
Benny Chey
Executive Director
DEVELOPMENT
& INTERNATIONAL
Leong Sing Chiong
Assistant Managing Director
Financial Centre Development
Carolyn Neo
Director
Financial Markets Development
Bernard Wee
Executive Director
International
Luz Foo
Executive Director
FINTECH & INNOVATION
Sopnendu Mohanty
Chief FinTech Officer
Deputy Managing Director
Executive Director
Director
Executive Director
Director
Anti-Money Laundering
Valerie Tay
Executive Director
Chief Examiner
Wan Aik Chye
CAPITAL MARKETS
Lee Boon Ngiap
Assistant Managing Director
Capital Markets Intermediaries I
Merlyn Ee
Executive Director
Capital Markets Intermediaries II
Lim Cheng Khai
Director
Capital Markets Intermediaries III
Koh Hong Eng
Deputy Managing Director
Assistant Managing Director
Executive Director
Executive Director
Director
Assistant Managing Director
FINANCE, RISK & CURRENCY
Low Kwok Mun
Assistant Managing Director
Finance
Teo Kok Ming
Executive Director
Risk Management
Daniel Wang
Executive Director
Currency
Chung Wei Ken
Executive Director
As at 1 August 2016
Director
Corporate Finance & Consumer
Paul Yuen
Executive Director
Markets Policy & Infrastructure
Ng Yao Loong
Executive Director
Enforcement
Gillian Tan
Director
POLICY, RISK & SURVEILLANCE
Wong Nai Seng
Assistant Managing Director
Prudential Policy
Lim Tuang Lee
Executive Director
Specialist Risk
Ho Hern Shin
Executive Director
Macroprudential Surveillance
Wong Nai Seng
Assistant Managing Director
Annual Report 2015/16
13
KEY ECONOMIC
AND FINANCIAL STATISTICS
National Income Aggregates
Gross Domestic Product
At Current Market Prices (S$m)
Growth Rate (% change)
At 2010 Market Prices (S$m)
Growth Rate (% change)
Gross National Income
At Current Market Prices (S$m)
Growth Rate (% change)
Labour Force
Unemployment Rate (%)
Productivity Growth (% change)
Changes in Employment ('000)
Average Monthly Earnings (% change)
Unit Labour Cost (% change)
Savings and Investment
Gross National Savings (S$m)
As % of GNI
Gross Domestic Capital Formation (S$m)
As % of GNI
Balance of Payments (S$m)
Goods Balance
Exports of Goods
Growth Rate (% change)
Imports of Goods
Growth Rate (% change)
Services and Other Balances
Current Account Balance
As % of GNI
Capital and Financial Account Balance
Balancing Item
Overall Balance
Official Foreign Reserves
Inflation (% change)
Consumer Price Index
GDP Deflator
Monetary Aggregates (% change)
M1
M2
M3
14
Monetary Authority of Singapore
2011
2012
2013
2014
2015
346,172.7
7.4
342,371.8
6.2
361,498.7
4.4
354,937.3
3.7
375,751.0
3.9
371,531.5
4.7
388,169.3
3.3
383,643.6
3.3
402,457.9
3.7
391,348.5
2.0
338,633.7
5.6
350,004.1
3.4
364,342.2
4.1
368,995.7
1.3
383,483.5
3.9
2.0
2.3
122.6
6.0
1.6
2.0
-0.3
129.1
2.3
3.0
1.9
0.5
136.2
4.3
1.4
2.0
-0.5
130.1
2.3
3.2
1.9
-0.1
32.3
3.5
2.8
172,539.4
51.0
93,555.8
27.6
173,055.1
49.4
107,638.7
30.8
181,189.2
49.7
113,905.7
31.3
180,088.9
48.8
112,281.8
30.4
185,439.1
48.4
105,806.6
27.6
93,131.5
545,991.9
8.1
452,860.4
8.0
-14,147.9
78,983.6
23.3
58,050.1
-115,546.0
21,487.7
308,403.2
87,931.2
546,654.2
0.1
458,723.0
1.3
-22,514.8
65,416.4
18.7
28,869.6
-61,680.1
32,605.9
316,744.2
94,653.4 100,891.1 113,456.7
547,265.5 554,704.5 518,377.8
0.1
1.4
-6.5
452,612.1 453,813.4 404,921.1
-1.3
0.3
-10.8
-27,369.9 -33,084.0 -33,824.2
67,283.5
67,807.1
79,632.5
18.5
18.4
20.8
46,706.6
58,576.9
77,052.4
-91,259.2 -117,766.2 -155,184.2
22,730.9
8,617.8
1,500.7
344,729.2 340,438.1 350,990.8
5.2
1.1
4.6
0.7
2.4
-0.7
1.0
0.1
-0.5
1.6
16.1
10.0
10.1
7.7
7.2
7.6
9.9
4.3
4.3
3.6
3.3
3.4
0.1
1.5
1.7
KEY ECONOMIC AND FINA NCI AL S TAT I ST I CS
2011
2012
2013
2014
2015
Interest Rates (period average,
% per annum)
Prime Lending Rate
Banks' 3-month Fixed Deposit Rate
3-month S$ SIBOR
3-month US$ LIBOR
5.38
0.17
0.41
0.34
5.38
0.14
0.39
0.43
5.38
0.14
0.38
0.27
5.35
0.14
0.41
0.23
5.35
0.17
0.92
0.32
Exchange Rates (period average,
S$ per)
US Dollar
Pound Sterling
Euro
100 Japanese Yen
Malaysian Ringgit
1.2579
2.0161
1.7495
1.5780
0.4111
1.2497
1.9803
1.6071
1.5672
0.4046
1.2513
1.9573
1.6621
1.2840
0.3973
1.2671
2.0873
1.6837
1.1996
0.3873
1.3748
2.1023
1.5267
1.1364
0.3534
855,811.4
911,009.0
9.5
6.4
6.8
8.9
-0.2
Finance Companies' Assets/
Liabilities (S$m)
Growth Rate (% change)
12,165.3
14,967.5
14,985.7
15,975.7
17,409.8
5.6
23.0
0.1
6.6
9.0
Merchant Banks' Assets/
Liabilities (S$m)
Growth Rate (% change)
87,851.1
92,411.0
84,944.9
96,256.8
106,583.2
-2.1
5.2
-8.1
13.3
10.7
Banking and Finance
Commercial Banks' Assets/
Liabilities (S$m)
Growth Rate (% change)
Asian Currency Units' Assets/
Liabilities (US$m)
Growth Rate (% change)
973,226.8 1,059,642.3 1,057,520.6
1,019,532.9 1,093,264.6 1,180,703.6 1,190,631.8 1,155,822.6
5.0
7.2
8.0
0.8
-2.9
133,905.4
1.5
148,592.5
11.0
153,208.7
3.1
168,795.7
10.2
179,188.3
6.2
General Insurers' Assets/Liabilities (S$m)
Growth Rate (% change)
27,209.4
56.1
26,267.6
-3.5
26,484.0
0.8
28,606.2
8.0
30,393.1
6.2
CPF
Excess of Contributions Over
Withdrawals (S$m)
14,184.8
14,321.6
13,666.8
12,423.3
13,323.9
Domestic Capital Market
Net Funds Raised in Domestic
Capital Market (S$m)
82,763.7
78,664.9
100,252.1
96,566.1
45,565.0
Insurance
Life Insurers' Assets/Liabilities (S$m)
Growth Rate (% change)
Note: Domestic interbank rates have been discontinued with effect from 1 January 2014 and replaced with S$ SIBOR.
US$ SIBOR rates have been also replaced with the US$ LIBOR, the most widely-used US$ interest rate benchmark,
so as to align with the larger global US$ market.
Annual Report 2015/16
15
NUMBER OF FINANCIAL INSTITUTIONS
IN SINGAPORE
End-March
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
108
5
103
24
36
43
113
6
107
24
42
41
114
6
108
27
41
40
120
7
113
25
46
42
120
6
114
26
50
38
123
6
117
26
52
39
123
6
117
27
53
37
124
5
119
28
55
36
126
5
121
28
56
37
124
5
119
28
53
38
(399)
(408)
(409)
(421)
(428)
(432)
(425)
(428)
(432)
(431)
154
106
48
158
111
47
161
112
49
162
117
45
163
117
46
165
120
45
161
120
41
159
121
38
160
123
37
155
122
33
3
3
3
3
3
3
3
3
3
3
(39)
(39)
(39)
(39)
(39)
(39)
(39)
(39)
(39)
(39)
49
49
50
46
47
46
42
39
38
34
153
61
27
5
60
151
59
25
5
62
158
62
27
6
63
158
64
26
6
62
157
63
28
6
60
164
70
29
6
59
168
72
28
6
62
177
79
31
6
61
181
80
31
6
64
186
79
32
5
70
Insurance Brokers
62
65
66
63
64
67
69
71
74
75
Representative Offices
Banks
Merchant banks
Insurance3
43
43
-
45
45
-
36
36
-
32
30
2
37
34
3
38
36
2
40
38
2
37
36
1
39
38
1
41
40
1
International Money Brokers
10
10
10
10
10
9
9
9
10
10
Banks
Local1
Foreign
Full banks
Wholesale banks2
Offshore banks
(Banking offices
including head offices
and main offices)
Asian Currency Units
Banks
Merchant banks
Finance Companies
(Finance companies'
offices including head offices)
Merchant Banks
Insurance Companies
Direct insurers
Reinsurers
Authorised reinsurers
Captive insurers
16
Monetary Authority of Singapore
N UM BER OF FINA NCIA L INST IT UT IONS IN SINGAPOR E
End-March
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
67
69
73
71
67
67
62
58
60
62
Capital Markets Services Licensees
Dealing in Securities
Trading in Futures Contracts
Advising on Corporate Finance
Fund Management
Leveraged Foreign Exchange Trading
Securities Financing
Providing Custodial Services for Securities
Real Estate Investment Trust Management4
Providing Credit Rating Services5
183
215
221
224
251
250
295
443
493
533
77
40
93
46
90
50
99
48
98
47
94
50
106
52
118
59
123
60
137
68
36
37
37
34
33
34
37
40
42
40
97
14
110
18
113
19
107
19
118
19
119
20
158
23
289
24
335
24
367
27
15
34
16
38
16
40
17
39
18
40
17
40
17
38
17
37
17
37
17
37
-
-
1
7
22
23
26
31
34
36
-
-
-
-
-
-
3
3
4
4
Licensed Trust Companies
31
35
38
40
48
50
51
52
54
53
-
-
-
-
-
-
74
236
275
273
Licensed Financial Advisers
Registered Fund Management Companies6
1 Local banks comprise five full banks.
2 Previously known as restricted banks.
3 Data is unavailable for the period between 2007 and 2009.
4 Regulation of real estate investment trust management came into effect on 1 August 2008.
5 Regulation of credit rating services came into effect on 17 January 2012.
6 Registration of fund management companies commenced under an enhanced regulatory regime which came
into effect on 7 August 2012.
Annual Report 2015/16
17
ANCHOR OF
ECONOMIC
AND FINANCIAL
STABILITY
18
Monetary Authority of Singapore
Annual Report 2015/16
19
ANCHOR OF ECONOMIC
AND FINANCIAL STABILITY
THE ECONOMY
SUBDUED GROWTH IN THE GLOBAL
ECONOMY
implementing a negative interest rate policy while
the latter expanded the size and scope of its asset
purchase programme in March.
A MODERATE G3 RECOVERY
Global economic growth slowed in 2015 to 3.9%
from 4.1% in 2014. While the G3 economies
remained on a moderate growth trajectory,
Asia ex-Japan recorded weaker outturns.
Global economic growth
slowed in 2015 to
3.9%
from 4.1% in 2014
Amid muted external demand, the United States
(US) and Eurozone posted relatively firm GDP
gains on the back of strong private consumption,
but Japan’s recovery was more tentative. In
Asia ex-Japan, China’s growth moderation and
the generalised slowdown in global trade flows
have weighed on the region’s economic activity,
particularly in the externally-oriented economies.
However, for the second consecutive year, resilient
domestic demand in the ASEAN-4 economies
provided some offsetting support.
Major central banks have pursued increasingly
divergent monetary policies. The steady recovery
in the US economy over the past few years enabled
the Federal Reserve to raise rates by a notch in
December 2015, though the pace of subsequent
policy normalisation will likely be gradual. In
comparison, sluggish growth and below-target
inflation have compelled the European Central
Bank (ECB) and the Bank of Japan (BOJ) to
intensify monetary easing. The ECB initiated a
full-fledged Quantitative Easing programme in
March 2015 and subsequently lowered interest
rates further into negative territory in December.
In January 2016, the BOJ joined the ECB in
20
Monetary Authority of Singapore
The US economy marked its sixth year of economic
expansion in 2015, with total output rising by 2.4%,
similar to 2014. Improved consumer confidence
on the back of steady employment growth
and a strong housing market spurred private
consumption and anchored the recovery. The
pickup in consumer spending, however, was partly
offset by weaker US exports due to the stronger US
dollar and tepid global demand. Gross fixed capital
formation also eased considerably in the second
half of 2015, on account of cutbacks in energyrelated investment. The continuation of these
trends, coupled with some pullback in consumer
expenditure, resulted in sluggish GDP growth of
1.1% on a q-o-q seasonally adjusted annualised
rate (SAAR) basis in Q1 2016.
Growth in the Eurozone picked up to 1.6% in
2015, from 0.9% in the previous year, as stronger
domestic demand more than compensated for
the drag from net exports. Private consumption
provided the largest contribution, with household
purchasing power boosted by lower energy
prices. In comparison, net exports fell, reflecting
anaemic demand from China and other emerging
economies. Across the Eurozone, growth remained
uneven: Spain posted a stellar performance, while
Italy and France continued to lag behind the rest of
the bloc. Nonetheless, the pace of expansion in the
region quickened to 2.2% in Q1 2016 on a q-o-q
SAAR basis, in an encouraging start to this year.
Japan’s GDP rose modestly by 0.5% in 2015, after
staying flat in 2014, as the negative effects of the April
2014 consumption tax hike waned. Nonetheless, the
recovery in domestic demand was constrained by
subdued private consumption which was, in turn,
held down by slower growth in nominal wages.
ANCHOR OF ECONOMIC A ND FI NANCI AL STAB I L I T Y
Meanwhile, weak external demand, especially from
the Asian markets, weighed further on economic
activity. In Q1 2016, growth recovered to 1.9%
q-o-q SAAR from −1.8% in Q4 2015, primarily due
to a bounce-back in household spending after a
weak showing in the previous quarter.
SLOWDOWN IN ASIA EX-JAPAN
Growth in the Asia ex-Japan economies eased
to 4.7% in 2015 from 5.2% in the previous year.
Reflecting the transitional frictions associated
with the ongoing economic rebalancing and
structural reforms, the Chinese economy grew
at a more moderate pace of 6.9% in 2015,
compared to 7.3% in 2014. The overall expansion
was underpinned by the services-producing
industries, which were buoyed by strong demand
for financial services. Meanwhile, the goodsproducing industries registered lower growth, as
segments of the manufacturing sector continued
to face excess capacity. In Q1 2016, GDP growth
in China slipped to 6.7% on a y-o-y basis, with
fiscal and monetary policy helping to buffer the
extent of the slowdown.
Growth in the Asia ex-Japan
economies eased to
4.7%
in 2015, from 5.2%
in the previous year
With growth easing in China, a hesitant recovery
in the G3, and a protracted slump in global
commodity markets, exports from the ASEAN-4
countries stagnated in 2015. Nevertheless,
private consumption growth stayed resilient,
supported by still favourable labour market
conditions, while investment picked up on a
surge in government capital spending in the
second half of 2015. As firmer domestic demand
partially offset trade weakness, ASEAN-4 GDP
growth dipped only marginally from 4.7% in 2014
to 4.6% in 2015.
The Northeast Asian-3 economies (NEA-3) grew
at a sluggish pace of 1.9% in 2015, down from
3.2% in 2014, due to disappointing exports amid
lacklustre global demand. However, household
spending remained relatively firm, even though
signs of a softening in the labour market had
emerged towards the end of the year due, in part,
to persistent weakness in the manufacturing and
tourism sectors.
HEIGHTENED FINANCIAL VULNERABILITIES
AND RISKS
Global financial markets turned volatile in early
2016. Weak commodity prices and economic
and financial uncertainties in China, weighed on
investor sentiment. This triggered substantial
selloffs in global equity markets and renewed
capital outflows from emerging markets (EMs).
Commodity prices have remained depressed,
and signs of stress have emerged in commodityrelated firms and sovereigns. Default rates in
commodity-related sectors are expected to rise,
and commodity-exporting economies could
face greater strains on fiscal sustainability and
ensuing capital outflows.
Financial stability concerns have persisted in
China as rising corporate defaults affected the
asset quality of the Chinese banking system,
while heightened asset market volatility has
exacerbated the pace of capital outflow.
Policymakers continue to face a delicate balance
between near-term economic performance and
asset market stability on the one hand, and
longer-term structural reforms on the other.
Strong intra-regional linkages could increase
contagion to other Asian economies and banking
systems from a China-related shock.
The US increased its interest rate for the first time
in more than nine years in December 2015. While
there are signs that the US economy is picking
up, fragility in global financial markets continues
to throw uncertainty over the pace of further
rate hikes. The greater use of unconventional
monetary policy is also increasing market
unease. The impact of divergent monetary
policies, as well as the impact of negative
interest rates, will continue to be closely
watched. Higher financing costs following
rate normalisation by the US Federal Reserve
and slower EM growth has stoked concerns
over household and corporate indebtedness
in the region.
Annual Report 2015/16
21
ANCHOR OF ECONOMIC A ND FINANCIA L STAB I L I T Y
Looking ahead, uncertainty over developments in
the United Kingdom (UK) and Eurozone could result
in further financial market volatility, with possible
knock-on effects on financial intermediation and
capital flows globally, and economic growth more
generally.
LOW GLOBAL INFLATION
Global inflation fell to low levels in 2015,
dragged down by declining energy prices and
sluggish growth. Headline inflation in the G3
economies dropped sharply to 0.2%, from
1.3% in 2014. In the US and Eurozone, prices
were unchanged in 2015, mainly due to the
disinflationary effects of falling energy prices.
Nonetheless, core inflation stayed firm at 1.8%
in the US, reflecting diminishing slack in the
labour market. Japan’s CPI inflation rate was
0.8%, although this was largely attributable
to the residual effects of the consumption
tax hike in the previous year. In Asia exJapan, inflation fell in 2015, as food and fuel
costs eased in China and India. Inflation in
the NEA-3 was similarly weighed down by
declining commodity prices, which also capped
ASEAN-4 price gains. In Thailand, inflation
In the first quarter of 2016, global headline
inflation, while still low, edged up slightly to 1.3%
y-o-y from 1.0% in Q4 2015. Price developments
were uneven among the G3 economies, with
inflation picking up in the US as the effects of low
energy prices dissipated, but moderating in the
Eurozone and Japan due to relatively subdued
growth. Meanwhile, inflation held steady in Asia
ex-Japan at 3.3% y-o-y, driven mainly by food
price increases.
SINGAPORE’S ECONOMIC GROWTH
MODERATED IN 2015
Singapore’s economic growth drifted down
further in 2015, with real GDP expanding by
2.0% from 3.3% in 2014 (see Chart 1). The
slower growth momentum was broad-based
amid a synchronised downshift in the Chinese
and regional economies. However, some
production activities were more heavily affected
due to higher direct exposure to sector-specific
headwinds buffeting the global IT and oil & gas
industries. At the same time, manpower-reliant
Headline inflation in
the G3 economies
dropped sharply to
The Singapore economy
expanded by a slower
from 1.3% in 2014
compared to 3.3% in 2014
0.2% in 2015,
Chart 1: Singapore’s Real GDP Growth
8
6
4
2
0
22
turned negative, as underlying price pressures
weakened in line with a protracted period of
below-trend growth.
Monetary Authority of Singapore
2.0% in 2015,
ANCHOR OF ECONOMIC A ND FI NANCI AL STAB I L I T Y
sectors continued to face transitory supply-side
constraints as they adjusted to ongoing efforts to
boost productivity.
From the domestic sectoral perspective,
the moderation stemmed largely from the
manufacturing sector, which saw a full-year
contraction. The slowdown was particularly
pronounced in the electronics and marine
& offshore engineering industries, reflecting
the impact of a worldwide slowdown in
electronics demand and a pullback in global
oil exploration and production expenditures,
respectively. Financial services also turned
in a more modest performance, though still
stronger than the rest of the economy, as loan
growth to East Asia and the domestic traderelated industries eased. Industries dependent
on domestic demand likewise slowed, in part
due to continued weakness in private sector
construction and softer demand for real estate
business services.
Growth momentum in the Singapore economy
eased at the start of this year, coming in at 0.2%
on a q-o-q SAAR basis in Q1 2016, after an
expansion of 6.2% in Q4 2015. The subdued
outturn stemmed largely from a cyclical pullback
in the financial services sector, following a
surge in Q4 2015 when fees and commissions
were paid out for the year. Softening regional
trade flows also weighed on the trade-related
services. In comparison, the manufacturing
sector saw a rebound on the back of a boost
to output in the pharmaceutical segment.
Meanwhile, a pickup in non-residential building
activities shored up growth in the domesticoriented sectors.
Looking ahead, the Singapore economy
is expected to continue on a modest and
uneven growth path, with further uncertainty
arising from recent developments in the UK
and the Eurozone. Nonetheless, domesticoriented sectors will remain generally resilient,
buttressed by steady demand for services,
such as healthcare and education. For 2016 as
a whole, the Singapore economy is projected
to expand by 1–3%.
1
2
Over the medium term, as productivity growth
gains momentum, the economy is expected to
settle on a sustainable growth trend underpinned
by a skilled labour force, an enhanced capital
stock, and technology-intensive production
processes.
INFLATION FELL DUE TO LOWER OIL PRICES
MAS Core Inflation, which excludes the costs
of accommodation and private road transport,
eased to 0.5% in 2015, from 1.9% in 2014. This
was mainly due to the sharp decline in the cost
of oil-related items amid weaker global oil prices.
The disinflationary effects of budgetary1 and other
one-off measures2, as well as the more modest
pass-through of cost increases to consumer prices,
also contributed to lower core inflation last year.
CPI-All Items inflation moderated to −0.5% in
2015, from 1.0% in the preceding year, reflecting
the more gradual increase in core consumer
prices as well as the dampening effects of lower
accommodation and private road transport costs.
Car prices and housing rentals softened alongside
an expansion in Certificate of Entitlement (COE)
quotas and the completion of a large number of
residential units last year.
MAS Core Inflation,
which excludes the
costs of accommodation
and private road
transport, eased to
0.5% in 2015,
from 1.9% in 2014
In the first quarter of 2016, core and overall
inflation diverged. MAS Core Inflation
picked up to 0.5% from 0.2% in Q4 2015 as
temporary disinflationary influences, such as
the enhanced medication subsidies introduced
at the beginning of 2015, abated. CPI-All Items
inflation remained on a downtrend, falling to
−0.8% in Q1 2016 from −0.7% in the previous
quarter, as a result of larger declines in housing
rentals and car prices (see Chart 2).
The budgetary measures include medical subsidies under the Pioneer Generation Package, the reduction in the concessionary
foreign domestic worker levy, as well as the abolition of national examination fees for Singaporeans.
These include SG50-related price promotions as well as temporary supermarket discounts in the second half of 2015.
Annual Report 2015/16
23
ANCHOR OF ECONOMIC A ND FINANCIA L STAB I L I T Y
Chart 2: Contribution to CPI-All Items Inflation
3
2
1
0
-1
-2
Looking ahead, external sources of inflation are
likely to remain subdued, given ample supply
buffers in the major commodity markets and
weak global demand. Notably, global oil prices
are expected to average lower for the whole
of 2016 compared to 2015. On the domestic
front, softer employment conditions will lead
to a slowdown in wage growth. In addition, the
pass-through of domestic costs to consumer
prices will be constrained by the subdued
economic growth environment.
MAS Core Inflation is expected to pick up
gradually over the course of this year, reflecting
the diminishing drag from oil prices as well as
from budgetary and other one-off measures.
However, this increase will be milder than earlier
anticipated, reflecting the weaker external price
outlook and domestic growth prospects, as
well as reduced tightness in the labour market.
Meanwhile, the drag to CPI-All Items inflation
from non-core components of the CPI basket is
expected to intensify this year, as a large supply of
car COEs and residential units comes on-stream.
MONETARY POLICY
In 2015, GDP growth in the Singapore economy
slowed to 2.0% from 3.3% in 2014. CPI-All Items
inflation turned negative and MAS Core Inflation
moderated to 0.5% from 1.9% in the previous
year. The decline in core inflation was due to the
24
Monetary Authority of Singapore
disinflationary effects of lower oil prices, as well
as budgetary and other one-off measures.
Singapore’s monetary policy was eased in a
calibrated manner, in line with the changing
macroeconomic environment. Having already
reduced the rate of appreciation of the Singapore
dollar nominal effective exchange rate (S$NEER)
policy band in an off-cycle move in January 2015,
MAS maintained the policy stance in April last
year. In October 2015, MAS eased policy further
by reducing the rate of appreciation of the policy
band slightly, in view of reduced price pressures
alongside a weaker growth outlook.
Going into 2016, MAS assessed that the tightness
in the labour market had eased, and MAS Core
Inflation was expected to pick up more gradually
than earlier anticipated. At the same time, core
inflation was likely to average below 2.0% over
the medium term. Singapore’s GDP growth
outlook had also moderated against a less
favourable external environment. Accordingly, in
April 2016, MAS set the rate of appreciation of
the S$NEER policy band at zero percent. There
was no change to the width of the band and
the level at which it was centred. This was not
a policy to depreciate the domestic currency,
but a measured adjustment following the policy
easing undertaken last year, and will ensure
price stability over the medium term. Chart 3
traces the evolution of monetary policy against
the backdrop of changes in key macroeconomic
variables in recent years.
ANCHOR OF ECONOMIC A ND FI NANCI AL STAB I L I T Y
Chart 3: Key Macroeconomic Variables and the Monetary Policy Stance
116
Neutral
Policy
116
Neutral
Policy
Index (Q1 2010=100)
112
Neutral
Policy
Modest & Gradual Appreciation
Shift to Modest &
Gradual
Appreciation &
Re-centre
112
108
Reduce
Slope
Modest & Gradual Appr
eciation
S$NEER
Reduce Slope
Slightly
108
104
104
100
100
96
5
Maintain
Re-centre
Increase Slope
Slightly & Restore
Narrower Band
Increase Slope Slightly
& Widen Band
Maintain
Reduce
Slope
Set Slope
to 0%
% of Potential GD
P
% of Potential GDP
4
4
Output Gap
3
3
Output Gap
22
1
1
0
0
% YOY
%YOY
-1
6
6
4
4
CPI-All Items Inflation
2
2016
Q1:
0.5%
2016Q1:
2
MAS Core Inflation
0
0.5%
0
-0.8%
-2
-2
10
20
Real GDP Growth
8
% YO%YOY
Y
16
6
12
4
8
2016
Q1:
1.8%
Real GDP Growth
2
40
2011
0
2010
2012
2011
20132
2012
014
2013
2015
2014
2015
2016Q1:
2016Q11.8%
2016Q1
Annual Report 2015/16
25
ANCHOR OF ECONOMIC A ND FINANCIA L STAB I L I T Y
MACROPRUDENTIAL POLICY
Since 2009, MAS has introduced a series of
measures to ensure stability in the property
market and to encourage financial prudence
among borrowers. Private residential property
prices have declined gradually. From the peak
in Q3 2013, overall prices have declined by an
average 0.9% each quarter over 10 consecutive
quarters. Alongside the gradual moderation in
prices, transaction volumes – across new sales,
resales and subsales – have declined and remained
subdued. The current transaction activity is less
than half of that seen between 2010 and 2012.
As a result, the growth in housing loan volumes
has continued to moderate and the risk profile of
housing loans has improved.
property market carefully for risks to financial
stability and take appropriate measures to
maintain a stable and sustainable market.
New private housing loans
with loan-to-value ratios
above 70% fell from
77% in Q2 2010 to
below 60%
in Q1 2016
MANAGEMENT OF LIQUIDITY
ENHANCING MAS’ STANDING FACILITY
From the peak in Q3 2013,
overall private residential
property prices have
declined by an average
2013
0.9% each quarter
The average tenure of new loans has declined from
30 years in 2012 to 25 years in Q1 2016. The share
of new private housing loans with loan-to-value
ratios above 70% fell from 77% in Q2 2010 to
below 60% in Q1 2016. The improvement in loan
profile underpins the banking system’s resilience
to risks arising from the property market. The rise
in mortgage rates remains manageable for the
majority of households and does not pose significant
repayment risk for banks’ housing loan portfolios.
Our stress test shows that the banking system would
be able to withstand a stress scenario that includes
a sharp correction in property prices.
The measured decline in property prices
suggests a benign scenario with property prices
settling at sustainable levels over time. MAS
remains vigilant for signs of renewed froth in the
property market on the back of still-elevated
prices in certain market segments. At the same
time, uncertainties in the financial markets
and headwinds in the external outlook could
add to risks of a sharper-than-warranted price
correction. MAS will continue to monitor the
26
Monetary Authority of Singapore
As part of ongoing efforts to enhance MAS’ liquidity
facilities, the range of acceptable collateral at
MAS’ Standing Facility was further expanded in
May 2015 to include Singapore statutory board debt
securities and Japanese Yen cash under the MASBOJ cross-border collateral arrangement (CBCA).
Singapore Statutory Board Debt Securities
With the inclusion of SGD debt securities issued
by Singapore statutory boards as eligible collateral
for MAS’ Standing Facility, banks can now hold a
broader pool of high quality SGD assets to meet
their liquidity needs in times of stress.
Japanese Yen Cash Under MAS-BOJ CBCA
MAS enhanced the MAS-BOJ CBCA to allow
banks in Singapore to pledge Japanese Yen cash
at MAS’ Standing Facility to obtain SGD liquidity.
This is in addition to the Japanese Government
Bonds and Japanese Treasury Discount Bills
that are already accepted under the CBCA. This
collaboration reinforces the commitment of MAS
and BOJ to support the long-standing economic
and financial relationship between Singapore
and Japan.
RENEWAL OF THE MAS-PEOPLE’S BANK OF
CHINA CURRENCY SWAP
MAS renewed the bilateral currency swap
arrangement with the People’s Bank of China
(PBC) in March 2016 for a further term of
ANCHOR OF ECONOMIC A ND FI NANCI AL STAB I L I T Y
three years. The original arrangement was
established in 2010 and first renewed in 2013.
The arrangement is a key pillar of cooperation
between MAS and the PBC to strengthen
economic resilience and financial stability.
Under the arrangement, up to RMB 300 billion is
available to eligible financial institutions operating
in Singapore. The arrangement enhances banks’
confidence in carrying out their business in the
two markets, and enables both central banks
to provide foreign currency liquidity to stabilise
financial markets. The arrangement is part of the
initiatives announced at the 12th Joint Council
for Bilateral Cooperation in October 2015,
to broaden the cross-border RMB channels
between Singapore and China.
MANAGEMENT OF OFFICIAL
FOREIGN RESERVES
As at 31 March 2016, MAS held S$332 billion
(US$246 billion) of official foreign reserves (OFR)
on its balance sheet.
MAS invests the OFR conservatively in a welldiversified portfolio of cash, bonds and equities
that seeks to achieve good long-term returns.
The portfolio is diversified across advanced and
emerging market economies, with investmentgrade bonds in the advanced economies
comprising the largest allocation in the portfolio.
About three-quarters of the OFR are denominated
in the G4 currencies i.e. USD, EUR, JPY and GBP.
Within the G4 currencies, the USD forms the
bulk. Diversification across markets, assets and
currencies helps to enhance the resilience of MAS’
portfolio across various market conditions.
In MAS’ financial statements, the OFR are
accounted for on a lower of cost and market
valuation basis. A valuation provision is made
against investment gain when the market value of
an OFR asset falls below cost. An unrealised gain
is not recognised when the market value of an OFR
asset rises above cost.
held. Such currency movements will result in
translation effects in MAS’ financial statements.
These translation effects have no impact on
the international purchasing power of the OFR,
and hence do not affect MAS’ ability to conduct
exchange rate policy or provide a buffer in the event
of a sharp deterioration in Singapore’s balance of
payments. Accordingly, it would not be meaningful
to hedge against the SGD to mitigate currency
translation effects.
INVESTMENT PERFORMANCE
Chart 4 shows the investment performance of the
OFR for the last five financial years. The gains/
losses of OFR, as represented by the gold bars
in Chart 4, comprise two separate components –
investment gains/losses (blue bars) and currency
translation effects (grey bars). Holding the SGD
exchange rate constant to strip out currency
translation effects, the OFR recorded an investment
gain of S$5.2 billion in FY 2015/16. As in previous
years, the investment gain was mainly from interest
income and realised capital gains from the sale of
OFR assets. The investment gain was, however,
lower compared to prior years due to higher
valuation provisions. The increase in provisions was
due mainly to the market values of some equity
securities in MAS’ portfolio falling below cost, as
global equity markets declined in FY 2015/16.
In FY 2015/16, the currency translation effect
was negative due primarily to the strengthening
of the SGD against the USD and the GBP. The
exchange rate movements of the SGD against
the G4 currencies for the last five financial years
are shown in Table 1.
Taking the investment gains/losses together with
the currency translation effects, MAS’ annual gains/
losses3 from OFR over the last five financial years
ranged from –S$10.1 billion to S$16.5 billion.
MAS’ financial results are reported in SGD. The
reported value of the OFR hence depends on the
exchange rate movements of the SGD vis-à-vis
the foreign currencies in which the reserves are
3
Gross of investment, interest and other expenses.
Annual Report 2015/16
27
ANCHOR OF ECONOMIC A ND FINANCIA L STAB I L I T Y
Chart 4: Gains/Losses of the OFR
20.0
16.5
Gains/Losses of OFR (S$’b)
12.7
10.6
9.4
10.4
5.9
5.2
3.4
1.9
1.2
0
-3.3
-9.3
-9.2
-10.1
-19.5
-25.0
FY2012/13
FY2011/12
Investment Gains/Losses
FY2013/14
Currency Translation Effects
FY2014/15
FY2015/16
Gains/Losses of OFR
Table 1: Exchange Movements of SGD against G4 Currencies (%)
4
SGD4 vs.
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
USD
0.3
1.4
-1.4
-8.3
1.9
EUR
6.8
5.3
-8.3
17.6
-4.0
JPY
-0.4
16.0
7.9
6.7
-4.5
GBP
0.6
6.6
-10.1
3.0
5.2
Positive figures represent an appreciation of the SGD, while negative figures represent a depreciation of the SGD against the foreign
currency over the financial year.
28
Monetary Authority of Singapore
ANCHOR OF ECONOMIC A ND FI NANCI AL STAB I L I T Y
Annual Report 2015/16
29
ROBUST,
TRUSTED,
DYNAMIC AND
PURPOSEFUL
FINANCIAL
CENTRE
30
Monetary Authority of Singapore
Annual Report 2015/16
31
ROBUST, TRUSTED, DYNAMIC AND
PURPOSEFUL FINANCIAL CENTRE
A ROBUST FINANCIAL CENTRE
INDUSTRY TESTS
Industry-Wide Stress Tests
MAS conducts annual industry-wide stress tests
of financial institutions in Singapore. In 2015, the
macroeconomic stress scenario applied across
the financial industry incorporated a weakening
of the external economic environment stemming
from a more aggressive than expected rise in the
US policy rate, prolonged slowdown in China, and
recession in core Eurozone and Japan. This in turn
triggered a slowdown in Singapore’s economic
growth, including a property market correction.
Direct insurers were also subject to insurancespecific stress scenarios such as a flu pandemic.
The stress tests showed that Singapore’s financial
system would remain resilient under the stress
scenario. As with previous years, MAS shared
the stress test results with participating financial
institutions, and engaged them on their results
and actions to mitigate the effects from plausible
risk events.
Cybersecurity Table-Top Exercise
Cyber Security Agency and MAS jointly organised
and conducted a table-top exercise (TTX) in May
2015 to assess the financial sector’s capabilities
and readiness to detect, respond and recover
Participants united in response to simulated cyber attacks
32
Monetary Authority of Singapore
Participants sharing their cyber strategies with Dr Yaacob
Ibrahim, Minister for Communications and Information and
Minister-In-Charge of Cyber Security
from cyber attacks. During the TTX, key financial
institutions tested their cybersecurity measures
and recovery plans across a range of cyber threat
scenarios, including the sector’s ability to execute
a coordinated response. MAS will continue to work
with various stakeholders to further strengthen the
sector’s cyber resilience.
ENHANCING THE RESOLUTION REGIME
In June 2015, MAS published a policy consultation
on proposals to enhance MAS’ resolution regime
to promote the orderly and efficient resolution of
distressed financial institutions, taking into account
the Financial Stability Board (FSB)’s Key Attributes of
Effective Resolution Regimes for Financial Institutions
and circumstances in Singapore. MAS proposed
recovery and resolution planning requirements for
financial institutions that are systemically important
or that perform critical functions. These financial
institutions are also required to adopt measures to
address deficiencies in their recovery plans, and
remove impediments to resolvability.
To facilitate orderly resolution, MAS proposed to
have powers to impose temporary stays on early
termination rights of financial contracts. Temporary
stays can also be applied to contracts that are nonfinancial in nature, but that are necessary to ensure
continuity of essential services and functions of
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
a financial institution. We also proposed to have
powers to recapitalise a financial institution by
writing down its unsecured subordinated creditor
claims or by converting them into equity stakes in
the financial institution.
MAS also consulted on a creditor compensation
framework, and proposed to fund costs relating
to resolution expenses through ex-post funding
arrangements.
BANKING
Strengthening Resilience
In April 2015, MAS issued a framework for
identifying and supervising domestic systemically
important banks (D-SIBs) in Singapore, and the
inaugural list of D-SIBs. D-SIBs are banks that
can have a significant impact on the stability of the
financial system and the proper functioning of the
broader economy. D-SIBs are required to comply
with policy measures to address the risks that they
can pose. These include local incorporation of
retail operations for foreign bank branches with a
significant retail presence, higher loss absorbency,
recovery and resolution planning, and liquidity
coverage ratio requirements.
In 2015, MAS conducted a thematic inspection
of several banks in Singapore to assess the
credit underwriting standards and practices of
their corporate lending business. Overall, we
observed that the banks’ underwriting standards
and practices were generally sound, though there
were areas for improvement. In February 2016,
we issued an information paper to share our
observations from the thematic inspection with
the industry.
Introducing Countercyclical Capital Buffer
MAS introduced the Countercyclical Capital Buffer
(CCyB) on 1 January 2016. The CCyB is a part of
the Basel III capital framework, and is intended to
mitigate pro-cyclicality and protect the banking
sector during stress periods. MAS supports
the Basel Committee on Banking Supervision’s
objective to address the build-up of systemic
risks from excessive broad-based credit growth,
and has included the CCyB in its macroprudential
toolkit. Based on prevailing economic and financial
conditions, we have set a CCyB rate of 0% for
Singapore.
Enhancing Regulatory and Licensing
Frameworks
MAS continues to review and enhance our regulatory
framework for banks, benchmarking it against
international standards. In 2016, MAS proposed
amendments to the Banking Act to enhance
depositor protection by strengthening prudential
safeguards, corporate governance, and risk
management controls of banks. The amendment
Act was passed in Parliament in February 2016.
In June 2015, MAS also announced that we
will remove the accounting divide between the
Domestic Banking Unit (DBU) and the Asian
Currency Unit (ACU). The DBU-ACU framework
was implemented in 1968 to safeguard financial
stability while facilitating growth of the Asian
Dollar Market. While it has served us well, recent
developments have reduced its relevance.
Regulatory developments since the global
financial crisis have broadly aligned the rules that
govern banks’ offshore activities and those for
domestic banking businesses in Singapore. We will
therefore remove the DBU-ACU divide to reduce
administrative burden on banks.
MAS has streamlined the bank licensing
framework by phasing out the Offshore Bank
licence. The revised two-tier licensing framework
distinguishes between Full Banks with access
to the retail market and Wholesale Banks that
specialise in wholesale business. MAS has
stopped issuing Offshore Bank licenses since
April 2016, and we will convert all existing
Offshore Banks to Wholesale Banks over time.
INTERNATIONAL SUPERVISORY
COOPERATION
Consolidated Supervision and Cooperation
with Foreign Regulators
MAS continues to participate in several insurance
group supervisory colleges as host supervisor.
Participation in these meetings strengthens MAS’
cooperation with the home supervisors of foreign
insurers. It also allows MAS to better understand
the activities of the insurance groups in other
jurisdictions which may have an impact on their
operations in Singapore.
MAS also participates in supervisory college
meetings of international and regional banks.
Annual Report 2015/16
33
R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
MAS hosted the 2015 APAC Recovery and
Resolution Planning Workshop for UBS and
Credit Suisse, two Global Systemically Important
Banks (G-SIBs), from 13 to 14 August 2015.
The workshop facilitated information exchanges
between home and host supervisors to support
recovery and resolution planning of these banks.
In addition, MAS and the ECB Joint Supervisory
Team hosted the annual Deutsche Bank APACAmericas supervisory college in Singapore for
non-EU supervisors from 23 to 25 November 2015.
MAS is also a member of the LCH supervisory
college. The college, chaired by the Bank of
England, discusses supervisory issues pertaining
to LCH’s operations in the various jurisdictions.
Crisis Management Group Meetings
MAS is a member of the Crisis Management
Group (CMG) of six of the G-SIBs that have
significant operations in Singapore and
participates in their CMG meetings. The meetings
facilitate information exchanges between home
and host authorities and the establishment of
institution-specific cross-border cooperation
agreements to support recovery and resolution
planning. They enhance preparedness and
cross-border coordination for crisis management,
including recovery and resolution planning, for
these institutions.
MAS is also a member of the CMG of one Global
Systemically Important Insurer (G-SII) and a
member of the sub-CMG of one G-SII.
SECURITIES, FUTURES AND OVER-THECOUNTER DERIVATIVES
Crowdfunding for Small and Medium
Enterprises
In June 2016, MAS published its responses to
the feedback received from a public consultation
on facilitating securities-based crowdfunding
(SCF). MAS’ responses seek to help start-ups,
and small and medium enterprises access
alternative methods of raising funds through
SCF, while ensuring that there are sufficient
safeguards for investors.
Amendments to the Singapore Code on Takeovers and Mergers
In February 2016, on the advice of the Securities
34
Monetary Authority of Singapore
Industry Council (SIC), MAS revised the Singapore
Code on Take-overs and Mergers to keep pace with
market developments and evolving international
practices. The key amendments included providing
greater clarity on the applicable procedures and
timelines for competing offers and the conduct of
a company’s board of directors when faced with
an offer. SIC will continue to review take-over rules
and practices to ensure the regime is in line with
international best practices.
Market Structure and Practices
The minimum trading price requirement of 20 cents
for Mainboard listed issuers was introduced on
1 March 2015. The Singapore Exchange (SGX)
continued to work closely with affected Mainboard
companies to explore options to meet the minimum
trading price of 20 cents. The objective of the
requirement is to improve the overall quality of the
securities market and address risks of low-priced
securities being more susceptible to excessive
speculation and potential market manipulation.
Other securities market initiatives, which were
extensively consulted in 2014, will be introduced
in phases, with intervals of at least six to 12
months between major initiatives. Short position
reporting will be introduced in 2017, followed by
collateralised trading in 2018. This will provide
market participants with adequate time to adjust
to the changes, and also allow MAS and SGX
to work closely with the industry to educate the
investing public of the upcoming initiatives.
MAS has completed a review of the self-regulatory
roles performed by exchanges. Starting from 2016,
MAS will be primarily responsible for supervision
and inspection of exchange members’ compliance
with statutory requirements. Exchanges will
continue to supervise their members for risk
management and operational requirements.
This arrangement will lead to greater supervisory
efficiency and effective oversight of risks posed by
intermediaries.
MAS will also enhance our surveillance capabilities
to monitor trading activities within and across
exchanges to detect potential misconduct and
market abuse. The new surveillance capabilities
will facilitate early detection of misconduct, and
support more expedient investigations and tough
enforcement actions.
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
As the sole securities exchange operator, SGX
will retain its role as listing authority. This role
has been enhanced with the 15 September
2015 establishment of the SGX Listings Advisory
Committee, Listings Disciplinary Committee and
Listings Appeals Committee to strengthen the
listing policymaking and review process, and
enhance how Listing Rules are enforced.
Over-The-Counter Derivatives Reforms
MAS remains fully committed to meeting the
Group of 20/FSB over-the-counter (OTC) derivative
reforms. We have made good progress in
implementing the reforms in Singapore.
MAS expects to complete the mandatory trade
reporting requirement by 1H 2017. Following
the commencement of the reporting regime for
interest rate and credit derivatives contracts in
2014, banks started the mandatory reporting of
foreign exchange (FX) derivatives in May 2015.
In January 2016, MAS consulted on proposals
to implement the reporting of the remaining asset
classes, namely commodity and equity derivatives
contracts. The consultation also included proposed
revisions to fine-tune the reporting obligations
for certain non-bank financial institutions, while
maintaining effective data coverage of OTC
derivative activities in Singapore.
MAS issued a public consultation in June 2015
setting out proposed requirements for the
regulation of OTC derivative intermediaries. In
July 2015, MAS also consulted on mandatory
clearing requirements for OTC derivatives. The
consultation proposed to start the clearing
mandate with SGD and USD interest rate
swaps, as these are the most widely traded
interest rate derivatives in Singapore. Proposals
to implement margin requirements for noncentrally cleared OTC derivatives followed in
October 2015. Margin requirements would
complement MAS’ mandatory clearing
requirements for OTC derivatives to better
manage potential systemic risks posed by the
OTC derivatives sector.
MAS has also focused on ensuring that the
financial market infrastructure is in place to support
the OTC derivatives reforms. To ensure that clearing
infrastructures are in place for mandatory clearing,
central counterparties (CCPs) in Singapore have
gained the requisite recognition from both EU
and US authorities. In addition to the Singapore
Exchange Derivatives Clearing Limited (SGX-DC)
being registered with the US Commodities Futures
Trading Commission as a Derivatives Clearing
Organisation since December 2013, SGX-DC and
ICE Clear Singapore were also recognised by the
European Securities and Markets Authority as
eligible third-country CCPs in 2015. In Singapore,
MAS recognised CCPs from the UK (LCH.
Clearnet Limited) and US (Chicago Mercantile
Exchange Inc.) as Recognised Clearing Houses
in February 2016 and May 2016 respectively.
MAS expects to recognise more CCPs, which will
strengthen accessibility to clearing infrastructure
from Singapore.
MAS continues to review other aspects of our
OTC derivatives regulatory regime, including
conducting an in-depth study on the conditions
that would be appropriate for a trading mandate
to be implemented in Singapore.
Financial Market Infrastructure
MAS issued the Notice on Financial Market
Infrastructure (FMI) Standards in August 2015,
setting out the principles in the Committee
on Payments and Market Infrastructures
(CPMI)-International Organisation of Securities
Commissions (IOSCO) Principles for Financial
Market Infrastructures (PFMI) for which licensed
trade repositories and approved clearing houses
regulated by MAS are required to comply.
With the transfer of provisions governing the
Central Depository System (CDS) from the
Companies Act to the Securities and Futures Act
(SFA), MAS issued the Notice on FMI Standards
for Central Securities Depositories which sets
out the PFMI standards for CDS in June 2016.
Supervisory Action
On 24 June 2015, MAS reprimanded SGX for
lapses related to SGX’s market outages on 5
November 2014 and 3 December 2014. MAS
also directed SGX to improve its recovery
capabilities and processes, including:
• Strengthening its monitoring system
capabilities to allow timely and accurate
problem identification when incidents
occur;
Annual Report 2015/16
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R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
• Strengthening its business continuity
management and disaster recovery procedures
to improve crisis preparedness; and
• Improving its crisis communications
processes to provide prompt information to
all stakeholders.
MAS is reviewing SGX’s implementation of the
remedial measures, which have been verified by
an independent expert. Until MAS is satisfied with
the completion of these measures, SGX will not
increase fees for the securities and derivatives
markets. SGX also contributed S$1 million to its
Investor Education Fund.
Review of Regulatory Safeguards for Investors
To enhance regulatory safeguards for investors
investing in capital markets products, MAS
announced in September 2015 that we will
proceed with proposals to:
• Extend capital market regulatory safeguards
to investors in certain non-conventional
investment products that are in substance
capital raising products; and
• Give investors who meet certain wealth
thresholds the choice whether to be treated
as an accredited investor with the consequent
reduction of regulatory safeguards.
MAS is finalising the legislative amendments to
implement these proposals, following a public
consultation and further engagement with key
stakeholders, for tabling in Parliament in 2H 2016.
ENFORCEMENT
Enforcement Actions
In April 2015, the highest civil penalty quantum ever
imposed by MAS in a single case was announced.
Civil penalty action was taken against an individual
and his niece for committing insider trading while
they were in possession of price-sensitive and nonpublic information relating to a share acquisition
and a mandatory general offer. The individual had
also admitted to false trading contraventions. The
total civil penalty imposed was S$11,838,000.
In another case, MAS took civil penalty action
against a former Managing Director of a foreign
36
Monetary Authority of Singapore
bank for insider trading after he traded on pricesensitive and non-public information relating to a
proposed acquisition. The defendant had acquired
this information in the course of his work. He paid a
civil penalty of S$434,912. This case was significant
as the defendant, who also headed the foreign
bank’s investment banking operations at the time
of the contravention, was based overseas and had
committed the offence of insider trading by trading
through his wife’s bank account in Singapore.
MAS also took action against two remisiers. The
first case was a civil penalty action against a
remisier for insider trading after he traded on pricesensitive and non-public information regarding a
proposed delisting and cash offer. He paid a civil
penalty of S$110,000 and was also prohibited
from engaging in regulated activities for a period
of two years. In the second case, MAS had
reason to believe that a remisier had engaged in a
deceptive act when he traded in a client’s securities
accounts for his own benefit. To prevent possible
further misconduct, MAS prohibited the remisier
from engaging in regulated activities for a period
of two years.
Between April 2015 and March 2016, MAS took
a total of 368 regulatory and enforcement actions
against companies and individuals for breaches
under the SFA and the Financial Advisers Act
(FAA). These actions included reprimands,
composition fines, civil penalties and prohibition
orders. Where they involve significant breaches
of law and regulations in relation to conduct
issues, MAS publishes details of our market
conduct regulatory actions. In this regard, MAS
published a total of eight formal regulatory and
enforcement actions against companies and
individuals under the SFA and FAA.
Between April 2015 and March
2016, MAS took a total of
368 regulatory and
enforcement actions
against companies and
individuals breaching
the Securities and Futures
Act and the Financial
Advisers Act
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
SECTORAL SECURITY OPERATIONS CENTRE
To enhance the overall cyber security situation
awareness of the financial sector, MAS has
embarked on the implementation of a Sectoral
Security Operations Centre (SOC). The SOC will
actively monitor and analyse logs from Critical
Infocomm Infrastructure Operators (CIIOs) for early
warnings of cyber threats targeting the CIIOs.
INSURANCE
Accident and Health Regulatory Framework
Following the MediShield Life Review
Committee’s recommendation to enhance the
regulatory and accountability framework for
Integrated Shield Plans (IPs), MAS worked with
the Ministry of Health and life insurance industry
to enhance disclosure requirements for insurance
policies, strengthen protection for policyholders
and improve the conduct of intermediaries for IPs.
MAS also reviewed the disclosure requirements
for other accident and health policies, including
short term policies.
MAS has refined the proposals based on the
feedback received from its public consultation
on the proposed accident and health regulatory
framework. With effect from 1 November 2015:
• Only Medisave-approved policies may have
the word “Shield” in their product names to
avoid confusion with non Medisave-approved
policies;
• Insurance intermediaries are required to
understand their clients’ financial commitments
and affordability concerns (including their
clients’ hospital ward preferences) to help their
clients identify the appropriate coverage;
• Insurance intermediaries are required to
highlight free-look periods, exclusions and
disclaimers as part of their disclosures; and
• Insurance intermediaries who provide advice
on IPs need to undergo specific training.
Certain disclosure requirements for non
Medisave-approved policies took effect on
30 June 2016 to give insurers sufficient time for
implementation.
Risk Based Capital Framework
Following the second consultation and first
comprehensive quantitative impact study (QIS) for
the Risk Based Capital (RBC) 2 framework in 2014,
MAS has engaged various stakeholders such as
insurers, industry associations, external auditors
and actuaries to exchange views on RBC 2.
MAS has further refined the proposed RBC 2
framework after reviewing the results of the first QIS
and the extensive feedback received. Although the
results showed that insurers were well-capitalised,
some adjustments were needed to avoid any
unintended consequences.
In particular, asset and operational risk charges
have been recalibrated and more diversification
benefits recognised. MAS has also widened the
criteria for the application of a matching adjustment
for life business. For cases where a matching
adjustment cannot be used, other broader
adjustments that similarly recognise the illiquid
nature of long-term liabilities have been introduced.
These changes will allow insurers to better carry out
their important roles in the economy and society
on a sustainable basis.
MAS is conducting the third consultation setting out
the revised enhancements and second QIS in Q3
2016. Overall, MAS does not expect the insurance
industry on the whole to hold higher levels of capital
under RBC 2.
A TRUSTED FINANCIAL CENTRE
PREVENTING MONEY LAUNDERING AND
TERRORISM FINANCING
Singapore is committed to the global effort
to combat transnational crime. Singapore is
a member of the Financial Action Task Force
(FATF) and a founding member of the Asia-Pacific
Group on Money Laundering.
In April 2015, MAS issued a revised set of Notices
and Guidelines to financial institutions on antimoney laundering and countering the financing
of terrorism (AML/CFT). These enhancements
reflect MAS’ prevailing supervisory expectations
and are benchmarked to global best practices
and standards.
Annual Report 2015/16
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R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
In June 2015, the MAS Act was amended to
enhance the effectiveness of Singapore’s AML/
CFT regime, particularly in relation to international
cooperation. The amendments are aligned with the
standards set by FATF and the Core Principles for
Effective Banking Supervision issued by the Basel
Committee on Banking Supervision.
In October 2015, MAS issued the “Guidance
on AML/CFT Controls in Trade Finance and
Correspondent Banking” to help financial
institutions improve their risk management
practices in these areas.
MAS has dedicated significant resources towards
AML/CFT supervision and enforcement. In 2015,
MAS conducted 54 AML/CFT inspections covering
banks, insurance companies, money-changers,
remittance agents, capital markets services
licensees, licensed trust companies, stored value
facility holders and non-bank credit card issuers.
MAS also engaged external auditors to conduct
AML/CFT inspections on 100 money-changers
and remittance agents.
MAS engaged external
auditors to conduct AML/
CFT inspections on
100
money-changers and
remittance agents
From these inspections, we found that AML/
CFT controls were generally in place for most
financial institutions. There was also greater
industry awareness of money laundering, terrorism
financing and proliferation financing risks in trade
finance and correspondent banking, and controls
in these areas had been enhanced. Financial
institutions had also incorporated “high tax risk”
indicators in their customer due diligence policies,
procedures and controls.
However, there were several areas for improvement.
MAS has asked financial institutions to continue to
strengthen their transaction monitoring systems
to ensure that they are able to detect unusual and
suspicious trends, patterns and activities over time.
These systems should also be enhanced to monitor
activities in multiple accounts belonging to the
same beneficial owner. Where there is suspicion of
38
Monetary Authority of Singapore
money laundering or terrorism financing, suspicious
transaction reports should be filed promptly.
In addition, a few financial institutions did not
conduct customer due diligence measures
commensurate with the risks presented by higher
risk businesses or customers. Some financial
institutions, particularly money-changers and
remittance agents, were required to strengthen
their customer due diligence processes, including
the documentation of the due diligence done.
MAS had required the relevant financial institutions
to promptly address all deficiencies noted and
take steps to strengthen their controls and risk
management framework.
MAS takes a serious view of breaches of AML/
CFT regulations and failure by financial institutions
to institute a robust AML/CFT control framework.
Sanctions are imposed on financial institutions for
regulatory contraventions and deficiencies in AML/
CFT measures. These include formal warnings,
reprimands, restrictions on operations, financial
penalties and revocation of licences. In 2015, MAS
issued 19 warnings and reprimands to financial
institutions. MAS also imposed financial penalties
on 16 financial institutions with amounts up to
S$800,000.
In 2015, MAS issued 19
warnings and reprimands
to financial institutions.
MAS also imposed
financial penalties on 16
financial institutions with
amounts up to
S$800,000.
CLOSURE OF BSI BANK LIMITED
In June 2016, MAS withdrew its approval for BSI Bank
to operate as a merchant bank in Singapore due to
serious breaches of AML requirements, extensive
control failures, ineffective senior management
oversight, and acts of gross misconduct by certain
bank staff. The last time MAS shut down a merchant
bank was in 1984, 32 years ago. In addition, MAS
imposed a financial penalty of S$13.3 million for 41
breaches of AML regulations. MAS also referred six
members of the bank’s senior management and staff
to the Public Prosecutor to evaluate if there were
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
criminal offences committed by these individuals.
In taking these actions, MAS reminded financial
institutions to take their AML responsibilities seriously,
and that MAS is resolved to ensure that Singapore
remains a clean and trusted financial centre.
In June 2016, MAS withdrew
its approval for BSI Bank
Limited to operate as
a merchant bank in
Singapore. The last time
MAS shut down a merchant
bank was in 1984, 32 years ago.
ENHANCING EXCHANGE OF TAX
INFORMATION FRAMEWORK
Singapore continued its efforts to promote
international tax transparency to combat crossborder tax offences. The first transmission of
information under the Foreign Account Tax
Compliance Act Model 1 Intergovernmental
Agreement between Singapore and the US took
place in September 2015.
In January 2016, Singapore ratified the Convention
on Mutual Administrative Assistance in Tax Matters.
The multilateral agreement expands Singapore’s
network of partners for exchange of information
on request to over 100.
Singapore also endorsed the new global standard
of Automatic Exchange of Information (AEOI)
and committed to implementing AEOI by 2018.
Legislative amendments will be made by the end of
2016. Singapore will explore entering into bilateral
AEOI arrangements with appropriate partners,
subject to:
• Partners having a robust framework of law
to maintain the confidentiality of information
exchanged and confine its use for tax
purposes;
• AEOI being implemented among all key
financial centres to create a level playing
field; and
• Reciprocity in terms of the scope of information
exchanged between jurisdictions.
A DYNAMIC AND PURPOSEFUL
FINANCIAL CENTRE
FINANCIAL SECTOR GROWTH REMAINS
RESILIENT
The Singapore financial sector remained resilient
in 2015, growing 5.3% compared to GDP growth
of 2% for the overall economy.
The Singapore financial
sector remained resilient
in 2015, growing
5.3%
DEDICATED DEPARTMENTS TO COMBAT MONEY LAUNDERING AND
STRENGTHEN ENFORCEMENT
BOX
1
On 13 June 2016, MAS announced that it would set up dedicated departments to combat
money laundering and strengthen enforcement.
The Anti-Money Laundering Department will streamline the existing responsibilities for
regulatory policies relating to money laundering and other illicit financing risks. A dedicated
supervisory team will also be set up to monitor these risks and carry out onsite supervision
of how financial institutions manage these risks. These functions used to be carried out by
different departments in MAS; the new structures will enhance supervisory focus.
The Enforcement department will continue to jointly investigate capital markets misconduct
offences with the Commercial Affairs Department. It will also be responsible for enforcement actions
arising from regulatory breaches of MAS’ banking, insurance and capital markets regulations.
The changes will take effect on 1 August 2016.
Annual Report 2015/16
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R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
Some key highlights include:
Banking
Total assets in the banking sector held steady at
S$2.3 trillion, while trade financing declined on
the back of a slowdown in the Chinese economy
and a moderation in trade flows.
Asset Management
Singapore’s asset management industry
posed 9% growth in 2015, with assets
under management reaching S$2.6 trillion.
Approximately 80% of these assets were
sourced from investors outside of Singapore,
while two-thirds were invested into the Asia
Pacific, reflecting Singapore’s role as a regional
investment gateway.
Singapore’s asset
management industry
grew 9% in 2015,
with assets under
management reaching
S$2.6 trillion
Insurance
Despite the challenging market conditions posed
by excess capacity and low investment returns,
total non-life gross written premiums grew by
10.4% y-o-y in 2015 to reach S$13.4 billion.
This was driven by good growth in the offshore
business, which grew by 13.8% and raised
the share of offshore non-life insurance to 68%
in 2015.
Total non-life gross written
premium grew by 10.4%
y-o-y in 2015 to reach
S$13.4 billion,
driven by good growth in
the offshore business
STRENGTHENING CAPITAL MARKETS AND
INCREASING PRODUCT DIVERSITY
Capital Markets
In 2015, SGD outstanding debt volumes remained
resilient with a growth rate of 8.5% while nonSGD outstanding debt volumes saw a modest
fall of 2.4%. The bond market continued to grow
in diversity. DBS issued the first covered bond in
Singapore in USD, while UOB became the first
bank in Asia to issue a EUR covered bond in
March 2016. UOB was also the first global issuer
to publish its Harmonised Transparency Template
under the Global Covered Bond Label Initiative5.
Real Estate Investment Trust Market
In July 2015, MAS refined its proposals to
strengthen Singapore’s real estate investment trust
(REIT) market, in response to industry feedback.
The enhancements aim to accord REIT unitholders
better protection and greater accountability, while
providing REIT Managers increased operational
flexibility. The enhancements will be phased in to
facilitate smooth implementation by the industry.
As of December 2015, there were a total of 39
REITs and property trusts listed on SGX, with a
market capitalisation of more than S$65 billion.
Foreign Exchange, Commodities and Derivatives
Singapore continued to grow as a trading hub for
FX, commodities and derivatives.
Average daily OTC turnover of FX reached
US$401 billion in October 2015 6. This was
a 5% increase from US$381 billion in April
2015, led by growth in FX and cross currency
swaps. In response to greater demands for risk
management and market transparency, total
volume of listed FX, commodity and equity
derivatives in Singapore increased by 53% y-o-y
to reach 180 million contracts in 2015.
Average daily
over-the-counter
turnover of foreign
exchange reached
US$401 billion
in October 2015
5
6
The Covered Bond Label is a market benchmark enhancing transparency of covered bonds by establishing core standards for
covered bonds (https://coveredbondlabel.com/).
Singapore Foreign Exchange Market Committee Survey on over-the-counter market activity.
40
Monetary Authority of Singapore
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
• Growth in listed FX derivatives was driven by
the Indian Rupee (INR) futures contract, which
grew six times in 2015 to over four million
contracts being traded.
• In commodity derivatives, the volume of
cleared iron ore derivatives doubled to
six million contracts, while the volume of
benchmark rubber futures traded grew 34% to
650,000 contracts over the year. SGX launched
Liquefied Natural Gas (LNG) derivatives in
January 2016 to facilitate risk management of
physical LNG trading.
In November 2015, ICE Futures Singapore and
ICE Clear Singapore commenced operations,
broadening the suite of listed derivatives products
in Singapore and strengthening Singapore’s value
proposition as a risk management hub.
At the same time, Singapore and China also
agreed to enhance capital market cooperation,
which adds a new dimension to bilateral financial
cooperation. Specifically, there was agreement
to institute a regular high-level dialogue between
MAS and the China Securities Regulatory
Commission (CSRC). MAS and CSRC also
agreed to explore product collaboration to
broaden capital market offerings. The first
MAS-CSRC Regulatory Roundtable was held
on 28 April 2016.
STRENGTHENING INFRASTRUCTURE
FINANCING
Bond Trading Platform
MAS recognised SGX Bond Trading Pte Ltd
(SGX-BT) as a Recognised Market Operator in
November 2015. The electronic bond trading
platform facilitates price discovery and trade
matching for dealers and clients. SGX-BT
aims to improve liquidity in the trading of Asian
bonds by aggregating liquidity providers on its
platform.
While the pace of growth has moderated,
population growth in ASEAN will still require
about US$60 billion worth of investment into
basic infrastructure each year. To meet the
growing need for infrastructure financing, MAS
is actively consulting the industry on the setup of
an infrastructure debt takeout facility to improve
institutional investors’ access to infrastructure
debt investment opportunities. We will also seek
to create usable infrastructure asset performance
benchmarks to encourage greater investment
allocation into infrastructure, and enhance project
bankability through promulgating consistent
project documentation (see Box 3).
ENHANCING THE RMB ECOSYSTEM
HARNESSING TECHNOLOGY AND INNOVATION
At the occasions of the 12th Joint Council for
Bilateral Cooperation in October 2015 and
President Xi Jinping’s visit to Singapore in
November 2015, MAS announced key RMB
initiatives to further strengthen RMB cooperation
with China. These initiatives include:
Financial Sector Technology and Innovation
Scheme
In June 2015, MAS launched the Financial Sector
Technology & Innovation (FSTI) scheme, which
would commit S$225 million over five years to
support the creation of a vibrant ecosystem for
innovation. FSTI funds can be used for three
purposes:
• Extending existing cross-border RMB
initiatives7 to the cities of Chongqing, Suzhou
and Tianjin;
• Allowing companies in the three cities that issue
RMB bonds in Singapore to fully repatriate the
proceeds raised; and
• Doubling Singapore’s quota under the RMB
Qualified Foreign Institutional Investor (RQFII)
scheme from RMB 50 billion to RMB 100 billion.
7
• Innovation centres: To attract financial
institutions to set up their R&D and innovation
labs in Singapore
• Institution-level projects: To catalyse the
development by financial institutions
of innovative solutions that have the
potential to promote growth, efficiency, or
competitiveness
The existing cross-border RMB initiatives include allowing:
(i) banks in Singapore to lend RMB to corporates in Suzhou, Tianjin and Chongqing;
(ii) corporates in Suzhou, Tianjin and Chongqing to issue RMB bonds in Singapore and to repatriate the proceeds onshore;
(iii) equity investment funds in Suzhou, Tianjin and Chongqing to make direct investment in Singapore and the ASEAN region; and
(iv) individuals in Suzhou, Tianjin and Chongqing to conduct RMB remittances to settle current account transactions and direct
investment in corporates in Singapore.
Annual Report 2015/16
41
R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
• Industry-wide projects: To support the
building of industry-wide technology
infrastructure that is required for the delivery
of new, integrated services
ecosystem in Singapore, and to develop
strategic projects to accelerate technology
adoption and performance in established
players within the financial sector.
Several financial institutions have already set up
their innovation centres or labs in Singapore, some
under the FSTI, including DBS, OCBC, UOB,
Allianz, Aviva, Citibank, Credit Suisse, Metlife,
and UBS.
The study found that Singapore has the resources
and capabilities to become a Smart Financial
Centre, based on benchmarking interviews with
the industry and secondary research.
To strengthen Singapore’s proposition as a hub
for the development, deployment and export of
FinTech solutions, MAS will focus on opportunities
in know-your-customer solutions, greater use
of Application Programming Interface (API)
gateways in financial systems, and establishing
innovation laboratories with industry partners
and other government agencies. New incentive
schemes will be made available to encourage
more experimentation such as proof-of-concept
projects and to recognise innovative solutions to
industry challenges. As the FinTech ecosystem in
Singapore grows and attracts venture capital, there
will be more funding options available for start-ups.
In June 2015, MAS
launched the Financial
Sector Technology &
Innovation scheme,
which would commit
S$225 million
over five years to support
the creation of a vibrant
ecosystem for innovation
Development of the FinTech Ecosystem
MAS commissioned a study to identify the
conditions needed to support a thriving FinTech
MAS intends to make Singapore the destination of
choice for innovative FinTech companies by easing
FORMATION OF THE FINTECH & INNOVATION GROUP
BOX
2
On 1 August 2015, MAS formed the FinTech & Innovation Group (FTIG). FTIG is responsible
for regulatory policies and development strategies to facilitate the use of technology and
innovation to better manage risks, enhance efficiency, and strengthen competitiveness in the
financial sector.
FTIG comprises:
Payments and Technology
Solutions Office, which
f o r m u l a t e s re g u l a t o r y
policies and develops
strategies for simple, swift
and secure payments and
other technology solutions
for financial services.
42
Monetary Authority of Singapore
Technology Infrastructure
Office, which is responsible
for regulatory policies and
strategies for developing
safe and efficient technology
enabled infrastructures for the
financial sector, in areas such
as cloud computing, big data,
and distributed ledgers.
Technology Innovation Lab,
which scans the horizon for
cutting-edge technologies
with potential application to
the financial industry and
works with the industry and
relevant parties to test-bed
innovative new solutions.
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
the process of starting an innovative financial
business. These firms will need a ready pool of
skilled FinTech professionals as they grow. MAS will
work in conjunction with the industry and academic
community to design new curricula and introduce
opportunities for internships and attachments to
meet this demand.
Enhancing Payments Efficiency
MAS’ vision for Singapore is for a retail payment
landscape that is swift, simple, and secure –
where interoperable electronic payment options are
accessible to and acceptable by all in Singapore. In
2016, MAS commissioned a study to take stock of
Singapore’s payments framework and landscape
and create a roadmap to achieve our vision. The
findings of this study will guide MAS’ payments
strategy in the years to come.
MAS, together with the Ministry of Finance (MOF),
is co-leading a government-wide effort to increase
the adoption of electronic payments in Singapore.
In 2015, MAS and MOF identified two core
thrusts: streamlining payment card acceptance
infrastructure at merchants through unified Pointsof-Sale (POS), and enhancing access to real-time
payments through the Fast and Secure Transfers
(FAST) system.
A unified POS would enhance merchant efficiency
by simplifying front-to-back process integration
and enhance customer experience. Separately,
FAST membership has grown from 14 to 19
banks since its launch in 2014, and the limit on
FAST transfers has been raised from S$10,000 to
S$50,000. This has allowed more people to pay for
more transactions in real-time.
MAS is also working with the Association of Banks
in Singapore (ABS) to develop a Centralised
Addressing Scheme that will allow anyone in
Singapore to pay someone else via FAST using
only his or her mobile number as a proxy.
Cooperation Agreements with the Financial
Conduct Authority and Australian Securities
and Investments Commission
MAS signed co-operation agreements on FinTech
with the Financial Conduct Authority (FCA)
and the Australian Securities and Investments
Commission (ASIC) on 11 May 2016 and 16 June
2016 respectively. The agreements will enable MAS
and its counterparts in the UK and Australia to
refer to one another innovative FinTech businesses
that would like to enter each other’s market.
Following the referral, the regulators will support
the businesses through the initial discussion
phase and provide advice on required licences,
thus helping to reduce regulatory uncertainty and
time to market. The agreements also set out how
regulators plan to share and use information on
emerging market trends on FinTech. In addition, the
MAS-ASIC agreement includes a commitment by
both regulators to explore joint innovation projects.
Singapore FinTech Festival
Mr Tharman Shanmugaratnam, Deputy Prime
Minister and Chairman of MAS, launched the
inaugural Singapore FinTech Festival, to be held
in Singapore from 14 to 18 November 2016, at
a Singapore FinTech roadshow in New York City
on 12 April 2016. MAS also announced the 100
problem statements submitted by the industry
for the Global FinTech Hackcelerator at a FinTech
event in Singapore on 31 May 2016. The event
was attended by more than 1,000 members
of the FinTech community, including bank
Mr Tharman Shanmugaratnam, Deputy Prime Minister
and Chairman of MAS, launches the inaugural Singapore
FinTech Festival in New York City on 12 April 2016. Also
in photo: Mr Ravi Menon, Managing Director of MAS,
and Mr Sopnendu Mohanty, Chief FinTech Officer
The audience at the announcement of the industry problem
statements for the Global FinTech Hackcelerator
Annual Report 2015/16
43
R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
and investment executives, FinTech start-ups,
technology experts, and innovation practitioners.
DEVELOPING GLOBALLY COMPETITIVE
TALENT
MAS has embarked on several initiatives to
develop a strong pool of future-ready talent under
the SkillsFuture framework for the financial sector.
First, to build a pipeline of job-ready graduates,
we are strengthening the linkages with tertiary
institutions to enhance the relevance of curriculum
and create greater internship opportunities. We
will be piloting an Earn and Learn Programme in
the area of retail banking to provide polytechnic
graduates an opportunity to learn the ropes
within key retail banks and at the same time gain
recognised qualifications.
Second, we have also put in place initiatives to
deepen skills and increase the versatility of our
financial sector workforce. To build a deeply skilled
workforce, we have launched the Financial Sector
Study Awards to support a wider range of specialist
44
Monetary Authority of Singapore
skills and programmes. In February 2016, we
announced the formation of the Financial Sector
Tripartite Committee (FSTC), bringing together
the industry associations, labour movement and
government to help the financial workforce address
the changing needs of the industry (see Box 4).
The FSTC has also set up the Financial Industry
Career Advisory Centre (FiCAC) to facilitate intra
and cross-sector mobility.
Third, we continue our efforts to build a strong
pipeline of Singaporean leaders in finance. In May
2015, the Asian Financial Leaders Programme
was launched by the Singapore Management
University (SMU) and Temasek Management
Services. The Programme will equip finance
professionals aspiring to take on C-suite roles in
Asian financial institutions with the knowledge to
navigate the diverse business, regulatory, and legal
environment in the region. The National University
of Singapore (NUS) had also launched its Asia
Leaders in Financial Institutions programme in
September 2015 to contribute towards building
a strong network of future financial leaders with
global perspective for Asia.
R OB UST, TRUSTED, DYNAMIC A ND PUR POSE F UL F I NANCI AL CE NT R E
UNLOCKING LONG TERM FINANCING FOR INFRASTRUCTURE
BOX
2
3
Asia’s infrastructure needs are set to rise rapidly over the next decade, nearing US$5.3 trillion
by 20258 . To keep up with this immense demand, Asia must unlock new sources of financing
and diversify beyond government funding and bank lending.
Institutional investors can be deep sources of long term financing. While infrastructure assets
can offer long-dated and inflation-protected returns, many investors have held back due to
information asymmetry and lack of access to bankable opportunities.
To develop infrastructure as an investible asset class for institutional investors, Singapore has
launched three partnerships to address the key bottlenecks:
Consistent project
documentation and proper
risk allocation to improve
bankability
Investors have shied away
from infrastructure projects
due to poorly-structured
contracts that leave them
exposed to unnecessary
non-commercial risks. In
partnership with the World
Bank Group and the G20’s
Global Infrastructure Hub,
Singapore is promoting
the adoption of essential
contractual clauses and
risk allocation matrices for
projects in Asia to improve
t h e q u a l i t y o f p ro j e c t
documentation and enhance
bankability.
8
Creating infrastructure
asset benchmarks
To allow institutional investors
to objectively evaluate
infrastructure investment
opportunities, MAS supported
the establishment of the
EDHEC Infrastructure InstituteSingapore (EDHECinfra).
EDHECinfra will create usable
performance benchmarks for
privately held infrastructure
debt and equity investments.
These benchmarks aim
to provide investors with
enhanced data on the return
and risk characteristics, as
well as facilitate performance
comparisons of privately held
infrastructure debt and equity
against other asset classes.
Developing infrastructure
debt as a significant asset
class for institutional
investors
To improve institutional
investors’ access to
infrastructure debt in Asia,
MAS is actively consulting
the industry on the setup of
an infrastructure debt takeout
facility, which will facilitate the
transfer of infrastructure debt
from banks to institutional
investors beyond the
greenfield stage. This will
also help banks to recycle
capital for new greenfield
investments.
Source: PwC, July 2015.
Annual Report 2015/16
45
R O BUST, TRUSTED, DYNA MIC AND PURPOSEFUL F I NANCI AL CE NT R E
FORMATION OF THE FINANCIAL SECTOR TRIPARTITE COMMITTEE
BOX
4
Top row (L-R): Ong Puay See (IBF), Julia Ng (WDA), Sylvia Choo (NTUC), Ong-Ang Ai-Boon (ABS),
Leong Sing Chiong (MAS), Vicky Wong (e2i), Carolyn Neo (MAS)
Bottom row (L-R): Max Lim (NTUC), Michael Zink (Citi), Wee Ee Cheong (ABS, UOB), Jacqueline Loh (MAS),
Patrick Tay (NTUC), Piyush Gupta (DBS), Lim Cheng Teck (SCB), Nora Kang (NTUC)
Absent with apologies: Samuel Tsien (OCBC)
In February 2016, MAS and the National Trades Union Congress (NTUC) announced the
formation of the Financial Sector Tripartite Committee (FSTC). The FSTC is co-chaired by
Ms Jacqueline Loh, Deputy Managing Director, MAS, and Mr Patrick Tay, Assistant SecretaryGeneral, NTUC.
SkillsFuture was first announced by Deputy Prime Minister Tharman Shanmugaratnam in
Budget 2015, and it aims to provide Singaporeans with opportunities to develop their fullest
potential throughout life, regardless of their starting points. To achieve the SkillsFuture objective,
tripartism is key. The FSTC brings together the industry associations, government and labour
movement, to build a financial sector workforce that is versatile and well-equipped to embrace
the opportunities and changing needs of the financial industry. For a start, the FSTC aims to
achieve the following:
Enhance versatility
The FSTC will collaborate with
the Institute of Banking and
Finance (IBF) to continually
review the IBF Standards and
identify new cross-functional
competencies needed, such
as in data analytics and risk
management. Structured
progression pathways
will also be developed for
evolving job segments
including Consumer Banking,
to encourage continuous
learning and upskilling.
46
Monetary Authority of Singapore
Facilitate mobility
In April 2016, the FSTC set
up a financial sector-specific
one-stop career advisory
facility known as the Financial
Industry Career Advisory
Centre (FiCAC). Supported
by various agencies, including
MAS, IBF and Workforce
Development Agency, FiCAC
will provide guidance to
professionals who are keen
to join the financial industry,
as well as those looking to
move to new jobs within the
industry.
Build resilience
In March 2016, the FSTC
partnered NTUC e2i
(Employment & Employability
Institute) to pilot a change
management programme that
will help the financial sector
workforce embrace new
mindsets towards skills
upgrading. This will strengthen
workers’ motivations to reskill,
upskill and acquire new skills,
thereby helping to build a
more resilient workforce that
can adapt quickly as the job
roles and technology in the
financial services sector
evolve.
Annual Report 2015/16
47
SERVING
THE PUBLIC,
ENGAGING
STAKEHOLDERS
48
Monetary Authority of Singapore
Annual Report 2015/16
49
SERVING THE PUBLIC,
ENGAGING STAKEHOLDERS
SERVING THE PUBLIC
initiative, the quantity of brand new S$2 notes
issued for the 2016 Lunar New Year fell further by
another 6.2 million pieces (7.4%) from last year.
MANAGING DOLLARS AND CENTS
As at 31 March 2016, the total currency in
circulation was S$39.3 billion (see Chart 5). This
was an increase of 6.4% from a year ago, with
S$56.9 billion worth of notes and coins issued
to banks and S$54.5 billion returned for the
financial year.
MAS continued with the “good-as-new” S$2
notes initiative for the fourth year. With this
In June 2016, MAS issued the Splendour
of Native Orchids Series coin set as a finale
to the popular Native Orchids of Singapore
coin series issued from 2011 to 2015. The
set, which has a limited mintage of 4,000,
comprises 10 miniature S$1 silver proof coins,
each featuring the same species of orchids
from the Native Orchids of Singapore coin
series in full colour.
Chart 5: Total Currency in Circulation
S$36.98 Billion
S$39.34 Billion
S$33.86 Billion
S$31.56 Billion
S$28.83 Billion
2012
2013
2015
2014
2012
2013
2014
2015
2016
Notes
27.58
30.27
32.52
35.59
37.89
Coins
1.25
1.29
1.34
1.39
1.45
Total
28.83
31.56
33.86
36.98
39.34
The Splendour of Native Orchids Series Coin Set
50
2016
Total Currency in Circulation (S$Billion)
Monetary Authority of Singapore
SERVING THE PUB LIC, ENGAG I NG STAK E HOL DE R S
SG50 COMMEMORATIVE CURRENCY
BOX
5
To celebrate Singapore’s 50th year of independence, MAS issued a set of three commemorative
coins in May 2015 followed by a set of commemorative currency notes in August 2015. The
commemorative coins consisted of a S$2 cupro-nickel proof-like coin, a S$5 silver proof coin
and a S$50 gold proof coin, while the commemorative notes comprised a S$50 polymer note
and five S$10 polymer notes. To meet collectors’ demand, a collection of seven limited edition
numismatic currency sets was also available for sale.
The coins were themed “Education, Building our Nation Together”, reflecting the fundamental
role that education played in the transformation of a young nation. The S$50 note highlights
Singapore’s history, transformation and future. The five S$10 notes have a common front
design and different back designs, each reflecting a value or an aspiration that depicts the
theme “Vibrant Nation, Endearing Home”. Both the S$50 and S$10 notes have security features
that are the first of their kind in the world to be used in a currency note. MAS won the “Best
New Currency Feature or Product” award for the lens-based wide security stripes on the S$50
and S$10 notes at the 2016 Excellence in Currency Technical Awards by the International
Association of Currency Affairs.
Commemorative Coins
S$50 Commemorative Note
S$10 Commemorative Notes
Annual Report 2015/16
51
SERVING THE PUB LIC, ENGA GING STAK E HOL DE R S
MONEYSENSE
MoneySENSE, the national financial education
programme, equips Singaporeans with the
knowledge and capabilities to make informed
financial decisions. The programme reaches out
to people from all walks of life through different
channels and strategies.
MoneySENSE engaged residents of MoulmeinKallang and Whampoa at the PAssionArts
Festival in July 2015, and reached out to the
public at the Council for Third Age’s 50plus
Expo in May 2015. Through such community
events, we educated Singaporeans on issues
such as prudent investing and retirement
planning.
Educating the General Public
MoneySENSE continued to engage members
of the public directly through talks, seminars,
workshops and community events. We also ran
advertorials in the newspapers, and worked with
partners to deliver content through television
and radio.
The MoneySENSE-Singapore Polytechnic
Institute for Financial Literacy (IFL) conducted
840 talks and workshops in 2015, educating
more than 26,000 participants on topics ranging
from basic money management to retirement
planning. Since its launch in 2012, the IFL has
conducted over 2,400 talks and workshops
that have benefitted close to 76,000 people.
MoneySENSE reached out to members of the public at
the PAssionArts Festival in July 2015
Empowering the Youth
As we continue to focus on the youth segment, we
started the My Money @ Campus seminar series
to reach out to tertiary students. The inaugural
seminar was held at SMU on 21 October 2015
and attracted about 340 undergraduates. Mr
Piyush Gupta, CEO of DBS Group Holdings Ltd,
shared his personal investment journey while
other industry experts and academics shared tips
on how to build an affordable portfolio.
An IFL workshop conducted in September 2015 for staff
of the Health Sciences Authority, on how to manage
CPF money for retirement
The MoneySENSE-Singapore
Polytechnic Institute for
Financial Literacy (IFL) conducted
840 talks and workshops in
2015, educating more than
26,000 participants
52
Monetary Authority of Singapore
My Money @ Campus seminar at SMU in October 2015.
A dialogue with Mr Piyush Gupta, CEO of DBS Group
Holdings Ltd (right), moderated by Assistant Professor
Aurobindo Ghosh from SMU (left)
The second My Money @ Campus seminar
was held at NUS on 17 March 2016. About 380
students learned the importance of planning
SERVING THE PUB LIC, ENGAG I NG STAK E HOL DE R S
ahead and managing investment risks from Mr
Michael Zink, Citi’s Head of ASEAN and Country
Officer for Singapore. Given the success of My
Money @ Campus seminars, we intend to hold
more editions at other universities and institutes
of higher learning (IHLs) in the upcoming months.
MoneySENSE also participated in several events
organised by IHLs to educate their students
on money management. We reached out to
undergraduates at a financial literacy carnival
organised by the NUS Students’ Union in March
2015, and supported the MoneySENSE-Central
Provident Fund Board Financial Literacy Week
organised for Ngee Ann Polytechnic students in
November 2015.
MoneySENSE utilised a gamification strategy to
educate the young about personal finance in a
fun and interactive way:
My Money @ Campus seminar at NUS in March 2016.
Mr Michael Zink, Citi’s Head of ASEAN and Country
Officer for Singapore, addressing the crowd
The inaugural My Money
@ Campus seminar was
held at the Singapore
Management University
on 21 October 2015 and
attracted about
340 undergraduates
• We worked with Nanyang Polytechnic and
the National Council for Problem Gambling
to organise the Singapore Games Creation
Competition. More than 500 students from
50 secondary schools as well as the Institute
of Technical Education created web-based
games and mobile applications with important
messages on spending money wisely and the
dangers of gambling.
• MoneySENSE partnered with Wellington
Primary School to organise the National
Primary Games Creation Competition. The
theme of the competition was “A Community
of Savvy Savers” and key messages in the
games included identifying needs and wants.
More than 400 pupils from 40 primary schools
took part in the competition.
PROMOTING FINANCIAL LITERACY THROUGH ISLAND-WIDE CAMPAIGNS
BOX
6
MoneySENSE conducted three large-scale educational campaigns in 2015. The goals of the
campaigns were to:
• Raise awareness of two key initiatives resulting from the Financial Advisory Industry Review
(FAIR) – compareFIRST and Direct Purchase Insurance (DPI)
• Encourage consumers to adopt sensible spending and borrowing habits and use
unsecured credit responsibly
• Highlight the importance of regular and long term saving and investing, and educate the
public on low-cost investment products
To maximise outreach, educational messages were featured on various media platforms,
including newspapers, public transport, television, radio, and mobile and online platforms
such as Facebook, Google and YouTube. To help the public recall as many of the messages
as possible, each campaign featured a distinct theme.
(continued on next page)
Annual Report 2015/16
53
SERVING THE PUB LIC, ENGA GING STAK E HOL DE R S
PROMOTING FINANCIAL LITERACY THROUGH ISLAND-WIDE CAMPAIGNS continued
BOX
6
“You Can Now Buy Direct” and
“Compare First” Campaign
compareFIRST is an interactive online
portal that enables consumers to compare
the premiums, features and benefits of life
insurance products. This helps them make
more informed decisions about which
life insurance policy to buy. DPI offers
consumers access to a distinct class of
term life and whole life insurance products
sold directly by life insurers without financial
advice and commissions.
“Spend Within Your Means” Campaign
The “Spend Within Your Means” campaign
ran from July 2015 to October 2015 and
featured baits modelled after luxury items
placed on mousetraps resembling credit
cards. The aim was to encourage consumers
to watch their spending and use unsecured
credit prudently.
The campaign tied in with regulatory changes
to help consumers avoid debt problems by
limiting the amount of unsecured credit they
can take out.
The “You Can Now Buy Direct” and “Compare
First” campaign ran from April 2015 to August
2015. It encouraged members of the public
to visit compareFIRST before making a life
insurance purchase and highlighted the key
features and benefits of DPI to consumers.
The educational campaign helped register
healthy interest in compareFIRST and DPI.
As of 31 March 2016, more than 300,000
visitors have used compareFIRST and about
223,000 product summaries have been
downloaded through the portal. In addition,
more than 850 DPI policies have been sold.
Message about compareFIRST on a taxi
Educational message about DPI at a bus shelter
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Advertisements in the newspapers, encouraging
consumers to use unsecured credit responsibly
“I Save and Invest for Our Future” Campaign
The “I Save and Invest for Our Future”
campaign encouraged the public to take a life
cycle approach to investing, and highlighted the
benefits of saving and investing from young.
The campaign, which ran from August 2015
to February 2016, also educated consumers
on simple, low-cost investment products such
as Singapore Savings Bonds, retail corporate
bonds and exchange-traded funds.
The campaign included a television commercial
showing a man going through different life
stages and reaching his goals in life thanks to
planning ahead from young.
Educational message on a bus showing an individual
going through the different stages of life, and eventually
reaping the benefits of saving and investing from young
SERVING THE PUB LIC, ENGAG I NG STAK E HOL DE R S
FACILITATING RETAIL ACCESS TO SIMPLE
LOW-COST INVESTMENT PRODUCTS
Singapore Savings Bonds
MAS launched the Singapore Savings Bonds
programme in the second half of 2015. The first
Savings Bond was open for public application
on 1 September 2015, and issued on 1
October 2015. The public reception has been
encouraging, with 32,000 individuals investing
S$810 million in Savings Bonds over the
first six issuances from October 2015 to
March 2016. This represented a significant
increase in retail investors’ participation
in the Singapore Government Securities
(SGS) market.
S$810 million
in Savings Bonds
allotted to
32,000
individuals from October
2015 to March 2016
Singapore Savings Bonds are a new type of SGS
that offer individual investors a safe, long-term
and flexible product to meet their savings and
investment needs.
• Safe: Savings Bonds are fully backed by
the Singapore Government. Investors can
always get their investment amount back in
full with no capital losses.
• Long-term: Savings Bonds have a term of up
to 10 years, and pay interest that increases
over time. The longer the savings period, the
higher the return.
• Flexible: Investors may choose to exit their
investment in any given month, with no
penalties. There is no need to commit to a
specific investment period at the start.
MAS will continue with public outreach efforts
to generate greater awareness of Savings
Bonds.
Facilitating Bond Offerings to Retail Investors
Following public consultations, MAS issued two
new regulations on 19 May 2016 to facilitate retail
investors’ greater access to corporate bonds
through the Seasoning Framework and Exempt
Bond Issuer Framework:
• Under the Seasoning Framework, wholesale
bonds issued by corporates that satisfy
specified eligibility criteria (such as size,
listing track record and credit profile) may be
re-denominated into smaller lot sizes after
the bonds have been listed for six months.
Eligible corporates will also be exempted
from providing a prospectus for additional
offers to retail investors of new bonds with the
same terms as the re-denominated bonds.
• Under the Exempt Bond Issuer Framework,
bonds issued by corporates that satisfy even
stricter eligibility criteria can be offered directly
to retail investors without a prospectus.
• Issuers using these frameworks would still be
required to provide to investors a summary of
the key information on the risks and features
of the bonds.
These frameworks are part of MAS’ overall efforts
to give retail investors better access to simple
investment products that can be used to build
their investment portfolio.
Improve Retail Access to Exchange
Traded Funds
In April 2015, MAS made changes to its
regulatory framework to allow fund managers
to re-classify relatively less complex Exchange
Traded Funds (ETFs) which make limited use of
derivatives as Excluded Investment Products
(EIP). These previously had to be classified as
Specified Investment Products and sold to retail
investors with enhanced regulatory safeguards,
including requirements for intermediaries to
first assess their investment knowledge or
experience in derivatives. As at April 2016,
85% of the total assets under management of
SGX-listed ETFs were classified as EIP-ETFs,
which investors can purchase as easily as
individual shares.
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SERVING THE PUB LIC, ENGA GING STAK E HOL DE R S
PROTECTING CONSUMERS
FINANCIAL ADVISORY INDUSTRY REVIEW
On 11 May 2015, MAS completed the policy and
legislative consultations on recommendations
under the Financial Advisory Industry Review
(FAIR). The objective of FAIR is to raise the
standards of the financial advisory (FA) industry
and improve efficiency in the distribution
of life insurance and investment products
in Singapore.
Key changes were made to the FAA, Insurance
Act and subsidiary legislation in 2015. The
following initiatives were implemented on 1
January 2016:
Balanced Scorecard Remuneration
Framework for Representatives and
Supervisors
This framework seeks to promote a culture of
fair dealing by subjecting a significant proportion
of a representative’s remuneration to nonsales key performance indicators. Under the
Balanced Scorecard (BSC) framework, the
representative is assessed based on whether
he has understood the customer’s needs,
recommended suitable products, made adequate
disclosures and conducted himself professionally
and ethically. There was a one year transition
period from January 2015 for FA firms to
familiarise themselves with the BSC requirements,
before the framework was legally effected on
1 January 2016.
Restrictions on Non-Financial Advisory
Activities for Representatives and Standalone
Financial Advisory Firms
MAS implemented legislation restricting the
types of non-FA activities which representatives
and standalone FA firms may conduct to
maintain a high level of professionalism and
competence in the FA industry. Any non-FA
activities conducted by these persons should not
be in conflict with their FA roles, result in a neglect
of their FA duties or bring disrepute to the FA
industry. Representatives are also prohibited from
conducting moneylending businesses, promoting
junkets for casinos, acting as real estate agents
and marketing products that are not regulated
under the FAA as investments.
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Monetary Authority of Singapore
Banning of Short-Term Incentives
MAS banned the payment and receipt of short-term
incentives in the FA industry. This will better align
the interests of FA firms and their representatives
with those of their customers and ensure that FA
firms and their representatives are not influenced by
such incentives when recommending investment
products to their customers.
Continuing Professional Development
MAS prescribed Continuing Professional
Development (CPD) training requirements for FA
representatives to ensure that they remain current
and up-to-date in their knowledge of market and
regulatory developments. FA representatives are
required to fulfil a minimum of 30 CPD training
hours annually, of which 12 hours are to be in
Ethics, and Rules and Regulations.
MAS will monitor the effectiveness of these
initiatives in meeting the objectives of FAIR.
ENCOURAGING PRUDENT BORROWING AND
LENDING BEHAVIOUR
Implementation of Unsecured Credit Measures
To encourage prudent borrowing, MAS announced
in 2013 that financial institutions would be
disallowed from granting further unsecured
credit to a borrower if the borrower’s total interest
bearing unsecured debt exceeds an industry-wide
borrowing limit for three consecutive months. The
borrowing limit was to be set at the borrower’s
annual income, and was to take effect on 1 June
2015. To allow borrowers more time to adjust to
the borrowing limit, MAS announced in April 2015
that it would be phased-in over four years. The limit
was set at an initial level of 24 times a borrower’s
monthly income from June 2015. This will be
lowered progressively to 18 times from June 2017
and 12 times from June 2019.
To help borrowers affected by MAS’ unsecured
credit measures, we worked closely with ABS, credit
card issuers and Credit Counselling Singapore to
develop coordinated repayment solutions for these
borrowers. MAS accompanied the introduction of
the new measures with an educational campaign
to help borrowers understand the phasing in of
the borrowing limit and repayment solutions, and
to educate the public on the consequences of
overspending.
SERVING THE PUB LIC, ENGAG I NG STAK E HOL DE R S
Enhancement of Credit Information in the
Credit Bureaus
MAS has been working closely with the consumer
credit bureaus to enhance information residing with
them. With effect from April 2015, a borrower’s
unsecured debt balances are broken down
into interest bearing and non-interest bearing
components. The enhanced information empowers
borrowers and financial institutions to make
more prudent borrowing and lending decisions
respectively.
Resetting of Motor Vehicle Financing
Restrictions
In 2013, MAS had re-introduced motor vehicle
financing restrictions as a cyclical response to
the strong demand for cars and the consequent
pressures on inflation. In addition, they serve as
a structural measure to foster financial prudence
among borrowers.
As at Q1 2016, premiums on COEs have fallen
significantly and inflationary pressures have
receded. The contribution of private road transport
(excluding petrol) to CPI-All Items inflation eased
from +1.3% points in 2011-2012 to -0.5% point
in Q1 2016. Outstanding motor vehicle loans have
moderated alongside the fall in demand, declining
by 32% from S$14.13 billion in Q1 2013 to S$9.55
billion in Q1 2016. In view of these developments,
MAS reset the financing restrictions in May 2016
by raising the maximum loan-to-value limit and
tenure to 70% and seven years respectively. The
recalibrated rules will continue to limit excessive
borrowing and support the move towards a car-lite
society over the long term.
ENHANCING PROSPECTUS DISCLOSURE
RULES FOR SECURITIES OFFERS
Improving the Readability of Prospectuses
On 7 July 2015, MAS published a set of guidelines
on good drafting practices for prospectuses. The
guidelines encourage and provide guidance to
issuers and their professional advisers on the use of
plain English and the presentation of information in
prospectuses in a clear, concise and logical manner.
The guidelines apply to all prospectuses and profile
statements lodged with MAS from 1 February 2016.
Issuers and their advisers are also encouraged to
follow the guidelines’ principles for other types of
offer disclosure documents.
PARTNERING ACADEMIA
Every year, MAS hosts distinguished academics
and former senior policymakers under its Eminent
Visitor Programme and through other platforms.
As part of their engagement, these visitors meet
with MAS’ senior management, deliver lectures,
and conduct in-house seminars and discussion
sessions with MAS staff.
In FY 2015/16, MAS welcomed Professor Paul
Romer (New York University) and Dr Claudio
Borio (Bank for International Settlements). In their
lectures, both visitors challenged the conventional
frameworks used in macroeconomic analysis.
Professor Romer argued that academic researchers
have increasingly invoked mathematical concepts
with no observable analogues in the real world, and
that such “mathiness” was impeding the progress
of macroeconomics as a science. Dr Borio’s
lecture explored how prevailing macroeconomic
frameworks needed to be adjusted to account for
the interactions between financial and business
cycles. Professor Romer’s lecture was moderated
by Professor Lawrence Christiano (Northwestern
University), who also served as MAS Term
Professor in Economics and Finance in FY 2015/16
(see Box 7).
Prof Paul Romer (right) delivers his lecture, moderated
by Prof Lawrence Christiano (left)
MAS, together with the NUS Business School
and the University of Chicago’s Booth School
of Business, also invited Professors Barry
Eichengreen (University of California at Berkeley)
and Hélène Rey (London Business School) to
participate in the 2015 Asian Monetary Policy
Forum (see Box 8). Professor Eichengreen is
the George C. Pardee and Helen N. Pardee
Professor of Economics and Political Science,
and an eminent authority on economic history
and international economics. Professor Rey is
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SERVING THE PUB LIC, ENGA GING STAK E HOL DE R S
well-known for her work on financial imbalances
and the international monetary system.
Following past practice, MAS invited the Eminent
Visitors, Term Professors, and other academics
to contribute articles to its Macroeconomic
Review. In 2015, Dr Donald Kohn (Brookings
Institution), former Vice-Chair of the Board of
Governors of the US Federal Reserve System,
wrote about the nexus between monetary
and macroprudential policies. Professor Ichiro
Sugimoto (Soka University of Japan) presented
newly constructed estimates of Singapore’s GDP
and its components for the period 1900–60 in a
Special Feature for the Review, and analysed
the broad trends in the colonial economic data.
Professor Anthony Tay (SMU) also contributed an
article on density forecasting in macroeconomics.
MAS TERM PROFESSORSHIP IN ECONOMICS AND FINANCE AT THE NATIONAL
UNIVERSITY OF SINGAPORE
BOX
7
Since 2009, MAS has sponsored a Term Professorship in Economics and Finance at NUS.
The professorship programme, which was extended for another five years in 2014, appoints
top scholars from prestigious universities to teach and conduct research at NUS. It aims
to strengthen Singapore’s financial and economic research infrastructure and contribute
to a vibrant research community and culture at local universities. Term Professors also
meet with MAS’ senior management and conduct discussions with MAS staff. In 2015,
Professors Andrew Rose (Haas School of Business, University of California at Berkeley)
and Lawrence Christiano (Northwestern University) were appointed Term Professors.
Professor Rose is the Bernard T. Rocca, Jr. Chair
in International Business & Trade at Berkeley, and
is a world-renowned researcher on open economy
macroeconomics. During his appointment, he
met with faculty members and taught students
through seminars and workshops at NUS. He also
engaged senior management at MAS on recent
developments in international macroeconomics
Prof Andrew Rose (left) interacts with Prof
and finance. In addition, he delivered a public
Deng Yongheng (right) from NUS during his
lecture titled “Domestic Bond Markets and
public lecture at NUS
Inflation”, which focused on his latest findings
on the relationship between inflation and domestic bond markets. Professor Rose also
participated in the activities of the Annual Conference of the Asian Bureau of Finance and
Economics Research (ABFER), as well as the Asian Monetary Policy Forum (AMPF), which
were held in May 2015.
Professor Christiano is the Alfred W. Chase Chair in Business Institutions and Professor
of Economics at Northwestern University, and is highly regarded for his ground-breaking
work on economic modelling and policy analysis. During his tenure as MAS Term Professor,
he interacted with faculty and students at NUS and also delivered a public lecture titled
“The Great Recession: Earthquake for Macroeconomics”. The lecture shed light on how
the field of macroeconomics has been profoundly affected by the Global Financial Crisis.
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VALUED PARTNER
ON THE
INTERNATIONAL
FRONT
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VALUED PARTNER
ON THE INTERNATIONAL FRONT
INTERNATIONAL FINANCE
•
Working Group on Supervisory Colleges –
MAS co-chairs this working group, which
seeks to strengthen the co-operation
of home and host regulators in the
supervision of internationally active banks;
•
Coherence and Calibration Task Force –
This task force assesses the coherence
of banking sector regulatory reforms
and helps inform the BCBS’ measures
to address excessive variability in riskweighted assets, as well as the design
and calibration of the leverage ratio; and
•
Task Force for Interest Rate Risk in the
Banking Book – The task force developed and
published the finalised capital framework and
enhanced supervisory guidance for interest
rate risk in the banking book in April 2016.
•
Task Force on Sovereign Exposures – MAS
also participates in the review of the regulatory
treatment of sovereign risk, which seeks
to address the risks posed by sovereign
exposures and is being conducted in a
careful, holistic and gradual manner.
INTERNATIONAL FINANCIAL REGULATORY
REFORMS
MAS continues to contribute to international work
on regulatory reforms as an active member of
various committees and standard setting bodies.
Financial Reforms and Implementation
Monitoring
MAS has chaired the FSB’s Standing Committee
on Standards Implementation (SCSI) since 2013.
In 2015, the key initiatives for SCSI are as follows:
•
Developed the implementation monitoring
‘dashboard’ for the first annual report
to the G20 on the implementation and
effects of financial regulatory reforms;
•
Launched the thematic peer review on
the implementation of the FSB policy
framework for shadow banking entities
other than money market funds; and
•
Completed reviews on supervisory
frameworks and approaches for G-SIBs, OTC
derivatives trade reporting, and resolution
regimes.
Banking
MAS contributes to the work of the Basel
Committee on Banking Supervision (BCBS)
through the following:
•
62
Task Force on the Standardised Approach
for Credit Risk – MAS has co-chaired
this task force since 2015. The task force
reviews the standardised approach for
credit risk for internationally-active banks
that are not using the advanced approaches
to ensure that credit risk is appropriately
captured in the capital framework;
Monetary Authority of Singapore
Insurance
MAS is actively involved in key committees
and working groups of the International
Association of Insurance Supervisors, including
the working group tasked with developing the
global Insurance Capital Standards, as well
as the FSB’s Insurance Cross-Border Crisis
Management Group.
Securities
At the IOSCO, MAS participates in the standardssetting work of various Policy Committees, Task
Forces and Working Groups. In 2015, we also
joined the Policy Committee on Enforcement
and the Exchange of Information, and the newly
formed Task Force on Market Conduct.
VALUED PA RTNER ON THE INT E R NAT I ONAL F R ONT
Financial Market Infrastructures
MAS actively participates in the CPMI and is
involved in working groups such as the Working
Group on Retail Payments and Working Group
on Digital Innovations. As a member of the CPMIIOSCO Steering Committee, MAS also participates
in the various CPMI-IOSCO initiatives, including:
•
•
•
Co-chairing of the Working Group on
Cyber Resilience, which published a set
of cyber resilience guidelines for FMIs for
public consultation in November 2015
Implementation Monitoring Standing
Group, which assesses the timely,
complete and consistent implementation
of the CPMI-IOSCO Principles for FMIs
Policy Standing Group, which develops
policies relating to FMIs
MAS also takes part in the joint Study Group on
Central Clearing Interdependencies (comprising
members from BCBS, CPMI, FSB and IOSCO),
to identify and analyse interdependencies between
CCPs and financial institutions. The Study Group
aims to support other international streams of work
to enhance resilience, recovery and resolvability
of CCPs.
INTERNATIONAL COOPERATION
MAS participated in the peer review among 28
jurisdictions with authorities that are members
of the FSB, CPMI and/or IOSCO. The peer
review assessment in 2015 covered authorities’
implementation of five responsibilities for
authorities set out in the CPMI-IOSCO PFMI,
across all FMI types. MAS was assessed to
have observed all responsibilities across all
FMI types.
MAS also participated in the BCBS’ Regulatory
Consistency Assessment Programme as
an assessor for Mexico and South Korea’s
implementation of the Basel liquidity coverage
ratio.
PROMOTING GLOBAL GROWTH AND STABILITY
At the invitation of the G20 Chairs, Singapore
has continued to participate in the G20 Finance
Ministers and Central Bank Governors meetings
where we contributed to discussions on the
global economy, financial regulation and stability.
MAS is also an active member of the G20 Green
Finance Study Group and G20 International
Financial Architecture Working Group.
REGIONAL FORUMS
ASEAN FINANCIAL INTEGRATION
MAS actively supports financial integration within
ASEAN.
ASEAN Senior Level Committee
Under MAS and the Bank of Thailand’s cochairmanship of the ASEAN Senior Level
Committee, ASEAN central banks and monetary
authorities developed Strategic Action Plans for
ASEAN financial integration from 2016 to 2025.
These covered banking integration, financial
services liberalisation, capital account liberalisation,
capital market development, financial inclusion,
payment and settlement systems, and capacity
building.
ASEAN Working Committee on Capital
Markets Development
MAS chaired the ASEAN Working Committee
on Capital Market Development, which seeks
to promote the development of regional bond
markets. This is complemented by the work of
the ASEAN Capital Markets Forum, where MAS
works closely with fellow securities regulators and
the private sector to promote the strengthening
and greater integration of regional capital
markets.
ASEAN+3
The ASEAN+3 Macroeconomic Research Office
(AMRO) held its official opening ceremony in the
MAS Building on 19 February 2016.
AMRO is the independent macroeconomic
surveillance unit of the Chiang Mai Initiative
Multilateralisation (CMIM) Agreement, which is a
US$240 billion currency swap arrangement among
the Finance Ministries and Central Banks of the
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VALUED PA RTNER ON THE INTERNATIO NAL F R ONT
ASEAN+3 Member States to provide financial
support in times of liquidity need. AMRO provides
economic and financial surveillance and analysis
of the region to support effective decision-making
for the CMIM.
AMRO Official Opening Ceremony
EXECUTIVES’ MEETING OF EAST ASIA-PACIFIC
CENTRAL BANKS
MAS hosted the 20th Executives’ Meeting of East
Asia-Pacific Central Banks (EMEAP) Governors’
and 4th EMEAP Governors-Heads of Supervisory
Authorities meeting in Singapore from 29 to 30 May
2015. From 2014 to 2016, MAS was co-vice chair
of the Working Group on Financial Markets, and
spearheaded work on issues related to recovery
and cross-border resolution of financial institutions
for the Working Group on Banking Supervision.
TECHNICAL COOPERATION
REGIONAL AND BILATERAL TRAINING
MAS contributes to the capacity building of regional
central banks and regulatory authorities through
structured training and technical cooperation
programmes.
In July 2015, the Central Bank of Myanmar (CBM)
and MAS entered into an MOU that includes
technical cooperation and training. MAS hosted
CBM Governor U Kyaw Kyaw Maung to a study
visit in August 2015. In February 2016, MAS
conducted a three-day workshop on interbank
markets and banking supervision for over 30 CBM
participants in Yangon.
MAS was invited to share its enterprise risk
management practices at Bank Indonesia’s
Annual Risk Management Conference in Bali in
September 2015 and with the Autoriti Monetari
Brunei Darussalam in Brunei in January 2016.
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Monetary Authority of Singapore
In 2015, over 100 participants from 29 countries
attended the 21st and 22nd MAS Banking
Supervisors’ Training Programme, the 6th MAS
Information Technology Supervision Workshop and
the 9th MAS-Toronto Centre Regional Leadership
Programme for Securities Regulators. Close to 100
participants from countries such as Brunei, China,
Korea, Myanmar and Vietnam took part in MAS’
in-country training programmes and study visits.
In other technical cooperation programmes, MAS
collaborated with partners such as the Lee Kuan
Yew School of Public Policy, Civil Service College
and South East Asian Central Banks (SEACEN)
Research and Training Centre. For instance, in
April 2015, MAS hosted the 10th SEACEN-BOJ
Payments and Settlements System Course
in Singapore. MAS also contributed resource
speakers to various programmes organised by the
SEACEN Centre, IMF-Singapore Regional Training
Institute and Financial Stability Institute.
Regional participants and trainers at the 6th MAS
Information Technology Supervision Workshop, 16-20
November 2015, Singapore
IMF-SINGAPORE REGIONAL TRAINING
INSTITUTE
MAS contributes to the funding of the
International Monetary Fund-Singapore Regional
Training Institute (IMF-STI), which is the IMF’s
training centre in the Asia-Pacific region. The STI
furthers the work of the Singapore Cooperation
Programme, which coordinates the resources
available in Singapore for technical cooperation
with other countries. The Institute contributes to
regional growth and stability by providing highquality training on macroeconomic and financial
management, and related legal and statistical
issues to government officials from the region.
In 2015, the STI provided training to more than
800 officials. Over the 18 years since it was
established, the Institute has provided training to
more than 10,000 officials from over 40 countries.
VALUED PA RTNER ON THE INT E R NAT I ONAL F R ONT
MAS HOSTS THREE HIGH-LEVEL CONFERENCES
BOX
8
MAS hosted three high-level events in May 2015, which were attended by distinguished
academics, central bank governors and heads of supervisory authorities from the Asia-Pacific
region. The forums discussed financial and regulatory issues critical to Asia, economic and
monetary issues faced in the region, and provided a platform to facilitate research collaboration.
2015 Symposium on Asian Banking and Finance
This symposium, co-hosted by the Federal Reserve Bank of San Francisco and MAS for
the first time, brought together notable academics and Asia-Pacific CEOs of major financial
institutions. Held on 28 May 2015, the discussions covered three main themes:
• Looking back at the global financial crisis and assessing measures taken to strengthen the
financial sector
• Examining emerging financial system risks and policy responses in the current macrofinancial environment
• Looking ahead to analyse long-term developments which will shape the opportunities and
risks in Asian finance, and how supervisors and central banks should respond
Asian Monetary Policy Forum
The Asian Monetary Policy Forum (AMPF)
convened for a second year in Singapore on
29 May 2015, in conjunction with the Annual
Conference of ABFER. It was co-organised by the
NUS Business School, the University of Chicago’s
Booth School of Business and MAS.
The conference line-up included prominent
speakers such as Mr Tharman Shanmugaratnam,
Prof Barry Eichengreen delivers his lecture Deputy Prime Minister and Chairman of MAS,
Professor Carmen Reinhart (Harvard Kennedy
at the Asian Monetary Policy Forum
School of Government), Professor Barry
Eichengreen (University of California at Berkeley) and Dr Jacob Frenkel (Chairman of JP
Morgan Chase International). Professor Eichengreen presented the commissioned paper on
“Financial Development in Asia: The Role of Policy and Institutions, with Special Reference
to China”. The forum also included a panel discussion on the latest economic developments
and policy issues confronting Asia, chaired by Mr Ravi Menon, MAS’ Managing Director.
20th Executives’ Meeting of East Asia-Pacific Central Banks Governors’ Meeting
MAS hosted the 20th EMEAP Governors’ Meeting
on 30 May 2015. Governors from the 11 EMEAP
member central banks and monetary authorities
exchanged views on the global economy, and
growth prospects for the EMEAP region. They
also discussed updates from the Monetary and
Financial Stability Committee on its surveillance
outcomes and research activities, and progress
20th EMEAP Governors’ Meeting and 4th made on EMEAP projects in banking supervision,
Informal Meeting of EMEAP Governors and financial markets, payment and settlement
systems, and information technology. MAS
Heads of Supervisory Authorities
prepared several research pieces for the Meeting,
including a special paper on “Medium-Term Growth in EMEAP Economies and Some
Implications for Monetary Policy” (MAS Staff Paper No. 53).
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VALUED PA RTNER ON THE INTERNATIO NAL F R ONT
ASEAN FINANCIAL REGULATORS’ EXECUTIVE PROGRAMME
BOX
9
The inaugural ASEAN Financial Regulators’ Executive Programme was held from 24 to 27
January 2016.
Jointly organised by MAS and the Lee Kuan Yew School of Public Policy, with funding from the
Temasek Foundation, the three-and-a-half-day executive programme brought together senior
officials of the central banking and financial regulatory authorities from the ASEAN countries, to
discuss and provide insights to governance and leadership challenges in financial regulation.
It was attended by 23 high level officials from 10 ASEAN countries, and featured a list of
distinguished speakers including:
• Lord Adair Turner, former Chair of the UK Financial Services Authority;
• Andrew Sheng, Distinguished Fellow at Asia Global Institute, University of Hong Kong and
Chief Adviser to the China Banking Regulatory Commission;
• Teo Swee Lian, former Deputy Managing Director of MAS; and
• Anoop Singh, former director of the IMF’s Asia-Pacific Department.
The next run of the programme will take place in 2017.
Faculty and participants at the inaugural ASEAN Financial Regulators’ Executive Programme
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ONE MAS:
INTEGRATED
AND
COHESIVE
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ONE MAS:
INTEGRATED AND COHESIVE
CELEBRATING 45 YEARS
MAS celebrated our 45th anniversary this year with the opening of the MAS
Gallery in February 2016 (see Box 10). The Gallery is open to the public and
showcases MAS’ role in maintaining price stability and developing a trusted,
safe and progressive financial centre. The 45th anniversary theme will be
featured in key MAS events such as our Annual Dinner and National Day
celebrations. We also took the occasion to pay tribute to veteran MAS staff
such as Zainal Abidin B Abni and Sapuan B Basari for their invaluable service
over the years (see Box 11).
THE MAS GALLERY
BOX
10
The MAS Gallery was officially launched by Mr Tharman Shanmugaratnam, Deputy Prime
Minister and Chairman of MAS on 16 February 2016. The opening of the Gallery this year
takes on added significance as MAS celebrates its 45th anniversary. The 480-sqm Gallery was
conceived to help visitors better understand MAS’ mission, values and functions. It comprises
two sections – Insights@MAS and Reflections@MAS.
Insights@MAS offers visitors an overview of MAS’ functions. Through interactive games,
videos, and stylised displays, visitors will learn how MAS conducts monetary policy to manage
inflation, manages the official foreign reserves, issues currency notes and coins, regulates
and supervises the financial sector, and promotes Singapore as a sound and progressive
financial centre. Insights@MAS also highlights MAS’ efforts in raising financial literacy among
Singaporeans, and offers a glimpse into how technology and innovation might transform future
financial services and everyday life.
(L-R): Mr Lee Ek Tieng (past MD, November 1989 - December 1997), Mr Michael Wong Pakshong (past MD,
December 1970 - February 1981), Mr Tharman Shanmugaratnam (Deputy Prime Minister and Chairman of MAS),
Mr Goh Chok Tong (past Chairman, August 2004 - May 2011), Mr J.Y. Pillay (past MD, April 1985 - October 1989),
Mr Ravi Menon (MD of MAS), at the MAS Gallery launch
(continued on next page)
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ONE MAS: INTEGRATED AND COHE SI V E
THE MAS GALLERY continued
BOX
10
Reflections@MAS highlights MAS’ mission and values, its leaders and people through a
compilation of videos and photographs.
Admission to the MAS Gallery is free and self-guided. The Gallery is open on weekdays from
9.30am to 5.30pm, and on Saturdays from 9.30am to 1.30pm (only for group visits). For more
information on the MAS Gallery, please visit: www.mas.gov.sg/insights.
Tour of the MAS Gallery
Annual Report 2015/16
71
ONE MA S: INTEGRATED A ND COHE S I V E
45 YEARS IN MAS: AN INTERVIEW WITH SAPUAN AND ZAINAL
BOX
11
Zainal Abidin B Abni (left) and Sapuan B Basari (right)
At 16, he was looking for work to support his
parents, when his uncle informed him of a
job opening as a messenger at the soon-tobe-formed Monetary Authority of Singapore
(MAS) and encouraged him to apply. Sapuan
B Basari did just that, as did Zainal Abidin B
Abni, who was also 16 years old.
Little did they realise that they would embark
on careers that would eventually span 45
years in MAS.
After passing their interviews at the Board
of Commissioners of Currency Singapore
Building at Empress Place, where MAS’
administration office was originally located,
they immediately started work the next day
as messengers, joining the first batch of
staff to serve in MAS in 1971, when it was
first formed. Sapuan was posted to the
Economic Intelligence Department, and Zainal
to the Investment and Exchange Control
Department (IEC), formerly the Department
of Overseas Investments in the Ministry of
Finance. Both departments were located at
Fullerton Building then.
They rose through the ranks in MAS
and have been tasked with increased
responsibilities over the years. Sapuan is now
an administrative officer with the Specialist
Risk Department, while Zainal is a finance
executive with the Finance Department.
In Sapuan’s current role, he takes charge of
preparing and submitting his department’s
annual budget proposal, monitoring the usage
of funds and processing the department’s
payments. He also manages the office
operations and logistical requirements. Prior
to this appointment, he was a research officer
in the then Supervisory Policy Department,
where he undertook research and daily
monitoring of the developments in foreign
jurisdictions. Beyond his official duties,
Sapuan is also Chairperson of the MAS Staff
Branch – a union under the Amalgamated
Union of Public Employees. His committee
(continued on next page)
72
Monetary Authority of Singapore
ONE MAS: INTEGRATED AND COHE SI V E
45 YEARS IN MAS: AN INTERVIEW WITH SAPUAN AND ZAINAL continued
BOX
11
of nine looks after the welfare of more
than 200 members, and they hold regular
meetings to discuss plans on expanding its
membership base and maintaining good
union-management rapport. As for Zainal,
he takes charge of accounts processing in
his current role. He is also responsible for
monitoring receipt of income and payment
of expenses. Aside from his official duties,
Zainal was also the Sports secretary of the
MAS Recreation Club where he organised fun
sporting activities for MAS staff.
The two men, who will turn 62 this year,
recalled the days when they used to make
deliveries on foot to the various departments
in MAS that were located in City Hall, Empress
Place, OUE Building and Colombo Court.
Sapuan said: “We were young and fit, so
we could deliver letters from City Hall up to
Shenton Way.”
They also had to contend with travelling to
distant locations to deliver mail, added Zainal.
He used to deliver the daily financial report and
the Financial Times to the late Dr Goh Keng
Swee, who was then stationed at the Ministry
of Defence, near the Botanic Gardens.
It was in 1972 that Sapuan saw an opening
for a clerk in another department and applied
for the post. Meanwhile, Zainal followed suit
in 1973 by applying for a clerical position in
IEC, which later became the International
Department when exchange control was
abolished. It is now called the Finance
Department.
“In those days, from ‘71 to the ‘80s, we were
like a family. Because most of us who came
in were really young, we clicked really well.
We were even invited to many birthday parties
back then.”
Over the years, the two have also become
close friends; having lunch together or with
friends from other departments before
performing the afternoon prayers at a mosque
near MAS. When asked about their happy
memories in MAS, both men speak of the
relationships with friends and colleagues that
have kept them going.
Sapuan said: “In those days, from ‘71 to the
‘80s, we were like a family. Because most of
us who came in were really young, we clicked
really well. We were even invited to many
birthday parties back then.”
“There were no barriers and everyone was
very easy-going with each other,” Zainal
added with a smile.
They still keep in touch with former colleagues,
with whom they used to watch movies and
play soccer with after work.
“It’s like another family, maybe even closer
than our own family,” said Sapuan with
a laugh.
Annual Report 2015/16
73
ONE MAS: INTEGRATED AND COHE SI V E
RISK MANAGEMENT AND
BUSINESS CONTINUITY
(www.mas.gov.sg/Contact-Information.aspx),
and will treat any feedback provided with strict
confidence.
BUSINESS CONTINUITY, DISASTER RECOVERY
AND MEPS+ RESILIENCY
Key Principles of MAS’ Code of Conduct
MAS conducts several exercises a year to ensure
the operational readiness of staff and resiliency
of its infrastructure under its Business Continuity
and Disaster Recovery plans. In March 2015,
an enterprise-wide mobilisation exercise to test
the organisation’s business continuity plan was
successfully conducted with MAS management
and over 300 staff. MAS also conducts regular
contingency exercises with the participants of
MAS Electronic Payment System (MEPS+),
CLS Bank and Society for Worldwide Interbank
Financial Telecommunication (SWIFT) to ensure
that the national payment system remains stable
and resilient to minimise market disruption. MAS
also reviewed its crisis management structure to
strengthen our analytical capabilities to support
crisis decision making and to facilitate a more
seamless transition to crisis management.
INTERNATIONAL OPERATIONAL RISK
WORKING GROUP
On the international front, MAS joined the
International Operational Risk Working Group
that discusses risk management approaches to
address operational risks faced by central banks.
MAS’ participation provided opportunities to
benchmark its practices against our counterparts,
and to exchange good risk management practices.
• Personal and professional behaviour: We
uphold the highest standards of conduct and
behaviour in and outside MAS to safeguard
MAS’ reputation and interests. In all our
dealings, we are guided by the principles of
fairness, integrity, and professionalism.
• Duty of confidentiality: We safeguard, at all
times, the confidentiality of documents and
information obtained during the course of our
employment with MAS and even after we leave
MAS.
• Conflicts of interest: We avoid situations that
may give rise to actual, potential, or perceived
conflicts of interest. We take appropriate steps
to mitigate potential conflicts of interest where
such conflicts are unavoidable.
• Use of MAS’ resources: We use all MAS’
resources, including financial, intellectual
and electronic assets, in a responsible and
appropriate manner.
CONTROLS AND OPERATIONS
AUDIT ASSURANCE
FINANCIAL INDUSTRY SECURITY
PROGRAMME
At the industry level, MAS continued to work with
the Singapore Police Force, and representatives
from the financial industry under the Financial
Industry Security Programme to enhance physical
security (prevent crime and counter terrorism) and
contingency preparedness within the industry.
MAS’ WHISTLEBLOWING POLICY
MAS has zero tolerance towards fraud. We
encourage the public to report any fraud, unethical
behaviour or breaches in our Code of Conduct by
our staff. MAS will look into all feedback received
74
Monetary Authority of Singapore
The Internal Audit Department (IAD) conducts
an extensive programme of risk-focused audits
to provide audit assurance and ascertain the
efficacy of operational processes and controls.
During the year, IAD embarked on a review
of our audit rating framework to give greater
clarity to stakeholders on the state of control
environment of the audited activity. Our internal
quality assurance review concluded that our
audit practices continue to be in line with
established standards. We will continue to
step up efforts to seek technology solutions to
enhance audit processes and strengthen data
analytics capabilities to attain a wider audit
coverage and more in-depth analysis.
ONE MAS: INTEGRATED AND COHE SI V E
PROCUREMENT MANAGEMENT
Ensuring a transparent, open and fair procurement
process is of paramount importance. MAS has
reviewed its procurement practices and put
in place new controls to further enhance its
procedures.
SECURITY AND FIRE SAFETY
We have enhanced our security surveillance
capability by doubling our CCTV coverage. We
have also introduced video analytics to identify
breaches more effectively.
collaboration platform where staff can share
and co-author documents, as well as initiate
document approval workflows from one
location.
• Personal Mobility and Protection Suite,
comprising OneDrive, a collaboration and
mobility tool that allows staff to share
documents and collaborate with colleagues,
or to work with documents offline, and be
able to synchronise them to the corporate
network when back in office; MyBackUp, a
data protection tool with self-help recovery
functions to protect staff from accidental
data loss.
BUILDING SERVICES AND INFRASTRUCTURE
MAS is in the process of compacting offices
to optimise space usage and enhance work
synergies between functional work units. The
project is expected to be completed by Q3 2016.
As part of whole-of-government environmental
s u s t a i n a b i l i t y e ff o r t s , o t h e r b u i l d i n g
infrastructures and services will be progressively
upgraded by 2017 to meet new building
requirements and energy standards.
MAS was one of the top performing Government
offices in the 2014 Building and Construction
Authority (BCA) Building Energy Benchmarking
exercise (notified in 2015). MAS also achieved
the BCA Green Mark Award (Platinum) in 2015.
DMS homepage
REINFORCEMENT OF MAS’ IT SECURITY
INFRASTRUCTURE
ENHANCING PRODUCTIVITY AND
BUILDING CAPABILITIES
As part of MAS’ continuous efforts to
strengthen its cyber defences and protect
valuable information assets, MAS’ IT security
infrastructure was reinforced with capabilities to
detect anomalies and improve resilience against
advanced cyber attacks. These defences will be
enhanced to safeguard MAS against emerging
cyber threats.
STAFF MOBILITY AND PRODUCTIVITY
DATA GOVERNANCE AND ANALYTICS
Improving staff and organisational productivity
continues to be an important focus in MAS.
To achieve this, we introduced the following
initiatives:
Strengthening Data Governance Processes
MAS believes that a sound data governance
framework provides the foundation for consistent,
reliable and useful data, and expands the
potential for analytics within and beyond MAS.
With the setting up of the Data Governance
and Analytics Unit in April 2015, we have been
focused on strengthening our internal data
governance processes. We are fine-tuning our
data management policies, which will lay out
clear processes to aid the access, collection and
quality of data.
• The Document Management Solution (DMS),
which allows staff to create, manage, find
and share information easily. The DMS brings
together corporate documents previously
stored in various locations into a central
repository, enhancing knowledge sharing
capabilities in MAS. It is also an integrated
Annual Report 2015/16
75
ONE MA S: INTEGRATED A ND COHE S I V E
Growing Analytics Capabilities
MAS’ roles as an economic policy maker, integrated
supervisor overseeing financial institutions and
operator of Singapore’s national payment system
require it to collect, store and analyse massive
and varied data from many different sources.
With an increasing demand to derive quicker and
deeper insights from this wealth of data, we have
embarked on several analytics-related projects to
facilitate cross-functional analysis of data, enable
new insights and enhance surveillance through
better data visualisation and discovery tools.
steps to address key issues arising from the EES,
such as improving productivity and streamlining
work processes, in our continuing efforts to make
MAS a better workplace for all staff.
MAS is also continuously growing our data
analytics capabilities. We started a sponsorship
programme for Massive Open Online Courses
in data science to give staff good grounding
in data science concepts and tools for their
daily work.
Engaging Public Agencies
MAS collaborates actively with other public
agencies on various whole-of-government
initiatives. We are working with the Infocomm
Development Authority (IDA) on the provision
of MAS’ datasets on the revamped data.gov.sg,
with the aim of making our data more relevant
and accessible to both the industry and general
public. We have also collaborated with IDA on
the Personal Data Protection Challenge, where
a total of 13 teams submitted their solutions to
MAS’ challenge statement.
BUILDING A STRONG MAS FAMILY
EMPLOYEE ENGAGEMENT SURVEY
MAS conducted an Employee Engagement Survey
(EES) in October 2015, to gauge the level of staff
engagement and identify areas for improvement
within the organisation. The survey, the fourth
since 2008, drew a strong participation rate of
95%. The EES was followed by a series of town
halls, with discussions involving all MAS staff and
management.
The EES process highlighted several areas of
strengths in the organisation, in particular staff’s
strong connection to the values of MAS and a spirit
of collaboration across departments. MAS is taking
76
Monetary Authority of Singapore
Staff at the EES Town Hall sessions
BRINGING OUR PEOPLE CLOSER,
CELEBRATING SG50
The 43rd and 44th MAS Recreation Club
Committees continued to create opportunities
for staff to come together and bond meaningfully.
These included special events organised in
2015 as part of Singapore’s Golden Jubilee
celebrations. We saw greater staff participation in
performances, sports events and support for our
adopted beneficiaries. This allowed staff to build
connections outside of the office while celebrating
Singapore’s 50th year of independence.
MAS Carnival & Community Service Day 2015
The inaugural MAS Carnival was held on 9 June
2015 at Toa Payoh Stadium and Sports Hall. About
900 staff attended the Carnival to cheer on over
250 colleagues competing against each other
ONE MAS: INTEGRATED AND COHE SI V E
in multiple sporting activities and tele-matches.
These included track and field, tug-of-war, netball,
dodgeball and flag football. Community Service
Day 2015 was also held in conjunction with the
Carnival, with participating departments organising
innovative activities (e.g. a Cold Splash challenge)
alongside sales of delicious food and beverages to
raise funds for MAS’ adopted beneficiaries.
Community Service
MAS continued to organise activities in support
of our adopted beneficiaries – Lions Befrienders,
Grace Orchard School and the New Horizon
Centre. Our volunteers held block parties and
excursion trips for elderly folks to events such
as the ASEAN Para Games, and helped spring
clean their homes over Chinese New Year. We
also conducted mock interviews for special needs
children, as well as organised a special outing to
Jurong Bird Park for them and their families which
incorporated staff-run games stations.
Our thanks go out to all staff who participated
in MAS fundraising events. Through Community
Service Day, Heartstrings Walk and the Care &
Share pledge cards, staff contributed more than
$30,000 to ComChest in 2014. In recognition of
the funds raised, MAS was awarded the Corporate
Bronze Award by ComChest in 2015, one of two
government agencies to receive the award since its
inception in 2011. MAS also continued to support
other initiatives such as the annual Share-A-Gift
initiative by Boys’ Brigade, and Red Cross disaster
relief for the victims of the 2015 Nepal earthquake.
Annual Dinner 2015
On 24 July 2015, MAS staff gathered at the Raffles
City Convention Centre for an unforgettable
evening, reminiscing local television classics and
celebrating Singaporean icons through the years.
Themed “Spectacular, Spectacular!”, the event
involved everyone through costume competitions,
staff emcees and performances, and even a
surprise management performance.
SG50 National Day Celebrations
MAS staff were treated to a special National Day
Celebration on 6 August 2015. The Golden Jubilee
commemoration event was themed “It All Started
With A Dream”, to celebrate how far we have
come as a nation in the last 50 years. Staff were
moved by the “Resilience” video which reviewed
some of the key events of the organisation through
staff interviews. They also enjoyed the games and
performances by the newest officers, and a buffet
lunch. The contributions of long-serving colleagues
were also recognised and celebrated in an awards
ceremony.
Inter-Central Bank Games 2015
The 39th Inter-Central Bank Games (ICBG)
took place from 18 to 21 September 2015 in
Kota Kinabalu, Malaysia. MAS’ representatives
competed with our regional counterparts in
Vertical Run, Basketball, Flag Football, Darts,
Virtual Games and the ICBG-Got-Talent
competition. MAS finished in 4th place overall.
Annual Report 2015/16
77
ONE MA S: INTEGRATED A ND COHE S I V E
PEOPLE DEVELOPMENT
Kidz@Work 2015
On 24 December 2015, over 100 children of
MAS staff enjoyed themselves at the annual MAS
Kidz@Work event. The party kicked off with a
magic show and a staff-choreographed musical
performance. The children were then treated to a
carnival with free-flow popcorn and candy floss, a
photo booth, balloon sculpting, and a wide range
of games stations.
Building Technical Competencies
To keep up with growing complexities of the
industry, improve productivity, and maximise our
potential, MAS encourages staff to continually
develop and deepen their skills. Development
opportunities include on-the-job and classroom
training, scholarships for post-graduate
studies, educational sponsorships, postings
to complementary functions within MAS, and
external secondments and attachments. The
external secondments and attachments to
supranational organisations, foreign central
banks and supervisory authorities, as well
as leading financial institutions provide our
officers with valuable opportunities to acquire
technical expertise, industry knowledge and
best practices.
General Development Training
A broad suite of general development training
programmes based on the Capacity, Leadership,
Interpersonal skills, and Personal attributes (CLIP)
framework are also offered to staff. These include
a good range of courses that equip staff with
written and verbal communication skills, personal
effectiveness, and tools for effective engagement
and leadership.
Family Day 2016
MAS’ annual Family Day took place at the Jurong
Bird Park on 12 March 2016. Themed “It’s gonna
be Birdy Good!”, the event attracted over 500 staff
and their families for a morning of fun and bonding
amid our feathered friends. The entertainment
included an interactive bird show, snack stalls,
variety games, a magic show and a lucky draw.
Functional Training
The MAS Academy offers technical programmes
to build and strengthen functional competencies
required across the organisation, as guided by
MAS’ Professional Requisites and Outcomes
Framework (PROF). The types of training include
classroom programmes, as well as talks by
experienced professionals, industry experts and
academics on emerging trends and areas of
specialisation relevant to MAS.
MAS Diploma
The MAS Academy offers the MAS Diploma – a
three-year flagship programme, which gives a
broad-based education on MAS’ key functions.
The compulsory modules cover the foundations
78
Monetary Authority of Singapore
ONE MAS: INTEGRATED AND COHE SI V E
of central banking, financial regulation, supervision
and development. Participants also choose
elective modules covering a wide range of
specialised topics depending on their interests.
To attain the Diploma, they are also required to
complete a final year project to contribute to the
knowledge building and sharing culture within
MAS. In FY 2015/16, there were 39 graduates from
the programme.
PARTNERSHIP WITH UNION
MAS was conferred the Plaque of Commendation
Award at the NTUC May Day Awards 2015, under
the nomination of our union, the Amalgamated
Union of Public Employees. The honour is given to
companies that have made significant contributions
to the Labour Movement and signifies our strong
partnership with the union developed over the
years through mutual trust and respect.
LEADERSHIP DEVELOPMENT
MAS Leadership Programmes
The MAS Leader Development Programme
is designed for Division Heads and Specialist
Leaders, and focuses on areas such as leadership
development, policy formulation and stakeholder
engagement. The MAS Manager Development
Programme comprises programmes that are
targeted at staff who are newly appointed into a
managerial role, and those who are experienced
managers respectively.
RECOGNITION OF STAFF
Service Appreciation Awards
The Service Appreciation Award (SAA) recognises
and celebrates the loyalty and contributions of our
dedicated staff. The awards ceremony was held on
6 August 2015. In all, 189 staff received the SAA for
service in MAS ranging from five years to 40 years.
Thirteen staff received the 40-year award.
Guest of Honour, Mr Tharman Shanmugaratnam, Deputy
Prime Minister and Chairman of MAS at the NTUC May Day
Dinner 2015 and representatives from MAS at the NTUC May
Day Awards 2015, with MAS’ Plaque of Commendation Award
National Day Awards
In 2015, 15 MAS staff were honoured for their
contributions and service to the nation. Among
the recipients were Assistant Managing Director
Chia Der Jiun and Assistant Managing Director
Wong Nai Seng who were conferred the Public
Administration (Silver) Medal. We extend our
heartiest congratulations to all our National Day
Award recipients.
Annual Report 2015/16
79
80
Monetary Authority of Singapore
FINANCIAL
STATEMENTS
82 Financial Statement Highlights
83 Statement by Directors
84 Auditor’s Report
86 Consolidated Statement of Comprehensive Income
87 Consolidated Balance Sheet
88 Consolidated Statement of Changes in Equity
89 Consolidated Cash Flow Statement
90 Statement of Backing of Currency in Circulation
91 Notes to the Consolidated Financial Statements
Annual Report 2015/16
81
MAS FY2015/2016
FINANCIAL STATEMENT HIGHLIGHTS
The Authority’s total assets, including the Currency Fund’s assets, decreased by 0.6% over the
financial year ended March 2016, to $385.1 billion, as foreign financial assets translated to stronger
Singapore dollar terms, contracted. Total liabilities also declined, by 0.7% to $344.3 billion, mainly
due to the $19.3 billion reduction in outstanding MAS bills issued, offset partially by the $9.2 billion
increase in the Singapore Government’s balances with the Authority and other smaller increases in
liabilities. The currency-in-circulation grew by 6.4%.
The Currency Fund’s net external assets grew by 5.6% to $48.8 billion, backing the higher currencyin-circulation by 124%, compared to 125% a year ago.
The Authority recorded a net profit of $0.2 billion in the financial year ended March 2016 (FY15),
as total income increased by 27.6% to $1.9 billion whilst total expenditure rose by 44.4% to
$1.7 billion. The SGD translation effect was negative due mainly to the strengthening of the SGD
against the USD and GBP by 1.9% and 5.2% respectively which was offset partly by the weakening
of the SGD against the Euro and Yen by 4.0% and 4.5% respectively.
The Authority’s total expenditure increase was attributable to higher investment and interest
expenditure. Whilst the Authority’s borrowings were reduced significantly during the year, Singapore
dollar interest rates averaged higher, compared to the previous year. General and administrative
expenditure was higher, arising mainly from costs related to the SG50 commemorative note issuance.
Based on the framework for Contributions to Consolidated Fund, no contribution to the Consolidated
Fund is required for this financial year as the net profit for the year was offset by carried forward losses
from previous financial years. The net profit for the year will be added to the Authority’s reserves,
in accordance with the Monetary Authority of Singapore Act.
82
Monetary Authority of Singapore
STATEMENT BY DIRECTORS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016
In the opinion of the directors,
(a)
the consolidated financial statements of the Authority and its wholly-owned subsidiary, Singapore
Sukuk Pte Ltd, as set out on pages 86 to 110 are drawn up so as to present fairly the state of
affairs of the Authority as at 31 March 2016, the results and changes in equity of the Authority for
the financial year ended on that date, and of the cash flows of the Authority for the financial year
then ended; and
(b)
at the date of this statement, there are reasonable grounds to believe that the Authority will be able
to pay its debts as and when they fall due.
On behalf of the Board of Directors,
THARMAN SHANMUGARATNAM
Chairman
RAVI MENON
Managing Director
24 June 2016
Annual Report 2015/16
83
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE
FINANCIAL STATEMENTS OF THE MONETARY AUTHORITY
OF SINGAPORE
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016
The accompanying financial statements of the Monetary Authority of Singapore (the “Authority”),
its subsidiary and Currency Fund, set out on pages 86 to 110, have been audited under my
direction. These financial statements comprise the consolidated balance sheet as at 31 March
2016, the consolidated statement of comprehensive income, consolidated statement of changes
in equity, consolidated cash flow statement and statement of backing of currency in circulation
for the financial year then ended, and a summary of significant accounting policies and other
explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The management is responsible for the preparation and fair presentation of these financial
statements in accordance with the provisions of the Monetary Authority of Singapore Act (Cap. 186,
1999 Revised Edition) and Currency Act (Cap. 69, 2002 Revised Edition) and applicable Singapore
Financial Reporting Standards as explained in Note 3.1(a) to the consolidated financial statements,
and for such internal controls as management determines are necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
My responsibility is to express an opinion on these financial statements based on the audit. The
audit was conducted in accordance with the provisions of the Monetary Authority of Singapore Act
and Currency Act and having regard to Singapore Standards on Auditing. Those standards require
that ethical requirements be complied with, and that the audit be planned and performed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal controls
relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes
evaluating, within the context of applicable laws, the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the management, as well as evaluating
the overall presentation of the financial statements.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my
audit opinion.
84
Monetary Authority of Singapore
OPINION
As disclosed in Note 3.1(a) to the consolidated financial statements, the Authority, in preparing
these financial statements, is allowed under section 34(3) of the Monetary Authority of Singapore
Act and section 21(10) of the Currency Act to comply with accounting standards to the extent that
it is, in the opinion of the Authority, appropriate to do so, having regard to its objects and functions.
As also disclosed in Note 3.1(a), the Authority has considered its responsibilities for managing
the Singapore dollar exchange rate and the Official Foreign Reserves and is of the view that, for
effective management of Singapore’s monetary policy, it would be appropriate not to meet, in
some respects, the Singapore Financial Reporting Standards. The financial statements accordingly
disclose less information than would be required under those Standards.
Having regard to the power given to the Authority under section 34(3) of the Monetary Authority
of Singapore Act and section 21(10) of the Currency Act, in my opinion, the consolidated financial
statements present fairly, based on the framework of accounting standards adopted by the
Authority, the state of affairs of the Authority and its subsidiary as at 31 March 2016 and the
financial transactions of the Authority and its subsidiary for the financial year ended on that date.
TAN YOKE MENG WILLIE
AUDITOR-GENERAL
SINGAPORE
24 June 2016
Annual Report 2015/16
85
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note
For the year ended 31 March
in $ millions
General Reserve Fund
Currency Fund
Total
2016
2015
2016
2015
2016
2015
Income/(Loss) from Foreign
Operations [after transfers
to/from provisions]
4
433
(1,877)
1,451
3,072
1,884
1,195
Income/(Loss) from Domestic
and Other Operations
5
(5)
266
3
11
(2)
277
Non-operating Income
6
10
11
1
–
11
11
1,455
3,083
1,893
1,483
Total Income/(Loss)
[after transfers to/from
provisions]
438
(1,600)
Less:
Investment, Interest and Other
Expenses
7
1,302
798
106
102
1,408
900
Personnel Expenditure
8
224
220
–
–
224
220
General and Administrative
Expenditure
9
81
60
–
–
81
60
Depreciation/Amortisation
16
23
22
–
–
23
22
Total Expenditure
1,630
1,100
106 102
1,736
1,202
Profit/(Loss) for the Year
[after transfers to/from
provisions]
(1,192)
(2,700)
1,349
2,981
157
281
–
–
–
–
1,349
2,981
Less:
Contribution to Consolidated
Fund
Net Profit/(Loss) and Total
Comprehensive Income/
(Loss) for the Year
[after transfers to/from
provisions]
19.2
–
(1,192)
–
(2,700)
The accompanying notes form an integral part of these financial statements.
86
Monetary Authority of Singapore
157 281
CONSOLIDATED BALANCE SHEET
As at 31 March
in $ millions
Note
2016
2015
CAPITAL AND RESERVES
Issued and Paid-up Capital
10
25,000
25,000
General Reserve Fund
11
6,396
6,455
Currency Fund Reserves
12
9,418
9,202
40,814
40,657
861
876
Represented by:
ASSETS
Cash and Bank Balances
Singapore Dollar Securities
13
8,661
7,723
Foreign Financial Assets
14
361,150
363,644
285
290
Other Assets
15
13,974
14,668
Property and Other Fixed Assets
16
190
184
385,121
387,385
Gold
Less:
LIABILITIES
Currency in Circulation
39,339
36,979
Deposits of Financial Institutions
17
26,823
25,783
MAS Bills
18
77,982
97,281
Foreign Financial Liabilities
14
19,972
17,841
Provisions and Other Liabilities
18
54,892
52,729
Amounts Due to Singapore Government
19
125,299
116,115
344,307
346,728
40,814
40,657
NET ASSETS OF THE AUTHORITY
The accompanying notes form an integral part of these financial statements.
Annual Report 2015/16
87
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued and
Paid-up
Capital
General
Reserve
Fund
Currency
Fund
Reserves
Total
25,000
6,115
9,261
40,376
Total Comprehensive Income/(Loss)
for the Year (after transfers to/from
provisions)
–
(2,700)
2,981
281
Transfer of Reserves from Currency Fund
–
3,040
(3,040)
–
25,000
6,455
9,202
40,657
Total Comprehensive Income/(Loss)
for the Year (after transfers to/from
provisions)
–
(1,192)
1,349
157
Transfer of Reserves from Currency Fund
–
1,133
(1,133)
–
25,000
6,396
9,418
40,814
in $ millions
Balance as at 1 April 2014
Balance as at 31 March 2015
Balance as at 31 March 2016
The accompanying notes form an integral part of these financial statements.
88
Monetary Authority of Singapore
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March
in $ millions
2016
2015
157
281
23
22
180
303
(938)
2,494
5
694
(716)
(3,618)
(24)
(2,575)
1,040
(19,299)
2,131
2,169
(8,574)
20,944
908
(10,131)
9,184
384
(2,340)
(3,099)
Purchase of Fixed Assets
(35)
(27)
Net Cash used in Investing Activities
(35)
(27)
Increase in Currency in Circulation
2,360
3,120
Net Cash from Financing Activities
2,360
3,120
Net Decrease in Cash and Bank Balances
(15)
(6)
Cash and Bank Balances as at beginning of the year
876
882
Cash and Bank Balances as at end of the year
861
876
Cash Flows from Operating Activities
Profit for the Year (after transfers to/from provisions)
Adjustments for:
Depreciation/Amortisation of Fixed Assets and Other Assets
Profit before Working Capital Changes
(Increase)/Decrease in
Singapore Dollar Securities
Foreign Financial Assets
Gold
Other Assets
Increase/(Decrease) in
Deposits of Financial Institutions
MAS Bills
Foreign Financial Liabilities
Provisions and Other Liabilities
Amounts due to Singapore Government
(excluding Contribution to Consolidated Fund
and Return of Profit to Singapore Government)
Net Cash used in Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
The accompanying notes form an integral part of these financial statements.
Annual Report 2015/16
89
STATEMENT OF BACKING OF CURRENCY IN CIRCULATION
The Currency Fund is established under Section 21 of the Currency Act (Cap. 69, 2002 Revised Edition).
Section 22 of the Act states that the external assets of the Currency Fund shall not be less than 100% of
the face value of the Currency in Circulation.
As at 31 March
in $ millions
Note
2016
2015
Currency in Circulation
12.2
39,339
36,979
External Assets
12.2
52,153
48,039
Foreign Financial Liabilities
12.2
2,925
1,668
Provisions and Other Liabilities
12.2
471
190
3,396
1,858
48,757
46,181
The value of External Assets and the Currency in Circulation are:
Less:
Net External Assets
The accompanying notes form an integral part of these financial statements.
90
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
These notes form an integral part of and should be read in conjunction with the accompanying
consolidated financial statements.
1
2
GENERAL
1.1
The Monetary Authority of Singapore (the “Authority”) is a statutory board established in
Singapore under the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition)
on 1 January 1971 and is located at 10 Shenton Way, MAS Building, Singapore 079117.
1.2
The consolidated financial statements presented relate to those of the Authority and its
wholly-owned subsidiary, Singapore Sukuk Pte Ltd (SSPL). The financial statements of the
Authority are not materially different from the consolidated financial statements and have
not been presented separately.
1.3
The Authority, subject to the directions of the Minister, controls and administers the Financial
Sector Development Fund (the “Fund”), a fund established under Section 30A of the
Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition) for the objects and
purposes set out in Section 30B of the Monetary Authority of Singapore Act. The audited
financial statements of the Fund, prepared in accordance with the provisions of the Monetary
Authority of Singapore Act (Cap. 186, 1999 Revised Edition) and the Singapore Financial
Reporting Standards, are available on the Authority’s website at http://www.mas.gov.sg.
PRINCIPAL ACTIVITIES
2.1
The principal activities of the Authority are:
a)
the conduct of monetary policy, issuance of currency, management of the official
foreign reserves and acting as the banker to and financial agent of the Government;
and
b)
the supervision of the banking, insurance, securities and futures industries, and
development of strategies in partnership with the private sector to promote Singapore
as an international financial centre.
2.2 The Authority’s subsidiary, SSPL, is a special purpose entity incorporated in Singapore, to
issue Sukuk certificates as Shariah-compliant assets to Islamic financial institutions to meet
regulatory requirements.
Annual Report 2015/16
91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
3
SIGNIFICANT ACCOUNTING POLICIES
3.1
Compliance with the Monetary Authority of Singapore Act, Currency Act and Singapore
Financial Reporting Standards
a)
The consolidated financial statements of the Authority, are prepared in accordance with
the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition), Currency
Act (Cap. 69, 2002 Revised Edition) and applicable Singapore Financial Reporting
Standards (FRS). Section 34(3) of the Monetary Authority of Singapore Act and Section
21(10) of the Currency Act provide that the Authority, in preparing its consolidated
financial statements, may comply with accounting standards to the extent that it is,
in the opinion of the Authority, appropriate to do so, having regard to the objects and
functions of the Authority. The Authority, having considered its responsibilities for
managing the Singapore dollar exchange rate and the official foreign reserves, is of the
opinion that, for effective management of Singapore’s monetary policy, it is appropriate
not to meet, in some respects, the Singapore Financial Reporting Standards. The
consolidated financial statements accordingly disclose less information than would
be required under those Standards.
b)
The new or revised FRSs applicable in the current financial year do not have a
significant impact on the Authority’s consolidated financial statements.
c)
3.2
Basis of Accounting
The consolidated financial statements have been prepared under the historical cost
convention and on an accrual basis, except as otherwise disclosed.
3.3
Basis of Consolidation
a)
92
The preparation of consolidated financial statements in conformity with FRS requires
management to exercise its judgement in the process of applying the Authority’s
accounting policies, having regard to the objects and functions of the Authority. It also
requires the use of accounting estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements, and the reported amounts of
income and expenditure during the financial year. Although these estimates are based
on management’s best knowledge of current events and actions, actual results may
ultimately differ from these estimates.
Subsidiaries are entities (including structured entities) over which the Authority has
control. The Authority controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity.
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
3.4
b)
A subsidiary is consolidated from the date control is established, acquired or
transferred to the Authority to the date control ceases. The cost of an acquisition is
measured as the fair value of the assets given, equity instruments issued or liabilities
incurred or assumed at the date of exchange.
c)
Balances and transactions between the Authority and its subsidiary, together with
any unrealised profits and losses arising from these transactions are eliminated, in
preparing the consolidated financial statements.
Foreign Currency Translation
a)
The consolidated financial statements are presented in Singapore dollars, the
Authority’s functional currency, and rounded to the nearest million, unless otherwise
stated.
b)
Transactions in foreign currency are measured at the exchange rate prevailing at the
date of transaction. Foreign currency gains or losses resulting from the settlement of
such transactions are recognised in the consolidated statement of comprehensive
income.
c)
Assets and liabilities denominated in foreign currencies are translated into Singapore
dollars, at the exchange rate prevailing on the balance sheet date, except for
shareholdings in Bank for International Settlements (BIS) and Society for Worldwide
Interbank Financial Telecommunication (SWIFT) which are converted at the rates of
exchange prevailing on the acquisition dates. Exchange differences arising from the
translation are recognised in the consolidated statement of comprehensive income.
3.5
Recognition and Derecognition
Purchases and sales of investments are recognised on the trade date when the Authority
commits to purchase or sell the asset. Investments are derecognised when the rights to
receive cash flows from the financial assets have expired or have been transferred and the
Authority has transferred substantially all risks and rewards of ownership.
3.6
Income Recognition
a)
Dividend income is recognised when the right to receive payment is established.
b)
Interest income is recognised on a time-proportionate basis using the effective interest
method. The effective interest rate is the rate that discounts estimated future cash
payments or receipts through the expected life of the financial instrument or, where
appropriate, a shorter period to the net carrying amount.
Annual Report 2015/16
93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
c)
Profits/losses on disposal of investments are taken to the consolidated statement of
comprehensive income.
d)
Licence fee income is recognised on a straight-line basis over the period of the licence.
3.7
Singapore Dollar Securities
Singapore Government Treasury bills and bonds and corporate bonds held are stated at
cost. Provision has been made for diminution in value, if any, based on the lower of cost
and market value on an individual investment basis.
3.8
Gold
Gold is a long-term investment stated at cost. Provision for diminution in value would be
made in the event of a decline other than temporary in its value.
3.9
Foreign Financial Assets and Liabilities
Foreign financial assets and liabilities represent the Authority’s investments in a global
diversified portfolio and are stated at cost. Provision has been made for diminution in value,
if any, based on the lower of cost and market value on an individual investment basis.
3.10 Financial Derivatives
Financial derivatives include forwards, swaps, futures and options and are included in
foreign financial assets and foreign financial liabilities. Other than financial instruments that
are subject to margin requirements or central clearing which are fair valued, provision has
been made for diminution in value, if any, of other financial derivatives based on the lower
of cost and market value on an individual investment basis.
3.11 Repurchase and Reverse Repurchase Agreements (“Repos” and “Reverse Repos”)
Reverse repos are treated as collateralised borrowings and the amounts borrowed are
included in “Provisions and Other Liabilities”. The securities sold under reverse repos
are treated as pledged assets and remain on the consolidated balance sheet. Repos are
treated as collateralised lending and the amounts lent are included in “Other Assets”. The
difference between the amount received and the amount paid under repos and reverse
repos is recognised as interest income and interest expense respectively.
3.12 Property, Other Fixed Assets and Depreciation
a)
94
Property and other fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. The cost includes expenditure that is directly attributable to the
acquisition of the items. Depreciation is calculated on a straight-line basis to write off the
cost less residual value of the fixed assets over their estimated useful lives as follows:
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
Useful lives
Leasehold Land
Period of lease
Buildings
50 years or period of lease
whichever is lower
Building Improvements
10 years
Computer Hardware and Software
3 to 5 years
Furniture, Fixtures, Motor Vehicles and
Other Equipment
3 to 5 years
The residual values and useful lives are reviewed and adjusted as appropriate, at each
balance sheet date.
b)
Computer software costs of less than $100,000 and other assets costing $1,000 and
below are expensed off in the year of purchase. Any computer software costs not
written off, are included in fixed assets.
c)
Property and other fixed assets are reviewed for impairment whenever there is any
indication that these assets may be impaired. If such indication exists, the recoverable
amount of the asset is estimated to determine the amount of impairment loss. The
impairment loss is recognised in the consolidated statement of comprehensive income
for the period.
Reversal of impairment losses recognised in prior years is recorded when there is
an indication that the impairment losses recognised for the asset no longer exist or
have decreased. The reversal, if any, is recognised in the consolidated statement of
comprehensive income. However, the increased carrying amount of an asset due to
a reversal of an impairment is recognised to the extent that it does not exceed the
carrying amount that would have been determined (net of depreciation or amortisation)
had no impairment losses been recognised for the asset in prior years.
d)
On disposal of fixed assets, the difference between the net disposal proceeds and its
carrying amount is taken to the consolidated statement of comprehensive income.
3.13 Operating Leases
a)
Leases where substantially all the rewards and risks of ownership remain with the
lessors are accounted for as operating leases. Rental receipts or payments under
operating leases are accounted for in the consolidated statement of comprehensive
income on an accrual basis according to the terms of the agreements.
b)
When an operating lease is terminated before the lease period has expired, any
payment required to be made to the lessor by way of penalty is recognised as an
income or expense in the period in which termination takes place.
Annual Report 2015/16
95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
3.14 Employee Benefits
a)
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the
Authority pays fixed contributions into entities such as the Central Provident Fund,
and will have no legal or constructive obligation to pay further contributions. The
Authority’s contributions to defined contribution plans are recognised in the financial
year to which they relate.
b)
Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue to employees.
A provision is made for annual leave as a result of services rendered by employees
up to the balance sheet date.
4
INCOME/(LOSS) FROM FOREIGN OPERATIONS
Income/(Loss) from foreign operations includes interest, dividends, profit/loss on disposal of
investments, foreign exchange gain/loss and write-back of/additional provision for diminution in
value of investments.
5
INCOME/(LOSS) FROM DOMESTIC AND OTHER OPERATIONS
Income/(loss) from domestic and other operations includes mainly interest, write-back of/
additional provision for diminution in value of Singapore Dollar Securities and other income/(loss)
from Singapore dollar money market transactions, licence and inspection fees, revenue from
currency-related operations, custody fee and revenue from services rendered to banks and financial
institutions on MAS Network and MAS Electronic Payment System which provides real-time gross
settlement of payments.
Income/(loss) from Singapore dollar currency swaps has been reclassified from “Income/(Loss)
from Foreign Operations” to “Income/(Loss) from Domestic and Other Operations” in the financial
year ended 31 March 2016 to better reflect its function. The comparative amount in the preceding
year has also been reclassified to be consistent with the presentation in the current financial year.
6
NON-OPERATING INCOME
Non-operating income includes rental and carpark income, liquidated damages and management
service fees.
96
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
7
INVESTMENT, INTEREST AND OTHER EXPENSES
Investment and interest expenses include management fees, futures/options commissions, bank,
custody and other charges arising from foreign operations, and interest paid on borrowings and
reverse repurchase agreements arising from domestic and other operations. Other expenses
include costs of printing of currency notes and coin operations.
8
PERSONNEL EXPENDITURE
8.1
This includes the following:
in $ millions
Salaries
2016
2015
190
187
Employer’s Contribution to the Central Provident Fund
20
18
Staff Benefits and Training
10
10
The Minister-in-charge of the Authority is not paid a salary by the Authority. Directors’ fees
for the year totalled $0.14 million (2015: $0.12 million). All Ministers serving on the Authority’s
Board of Directors do not receive directors’ fees.
8.2 The key management personnel compensation is as follows:
in $ millions
Salaries and Other Short-term Employee Benefits
Other Long-term Employee Benefits
2016
2015
21
20
4
4
Post-employment benefits of $0.7 million (2015: $0.6 million) were also provided to key
management personnel.
Executive Directors, Department Heads and above, are considered as key management
personnel for this purpose.
Annual Report 2015/16
97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
9
GENERAL AND ADMINISTRATIVE EXPENDITURE
This includes the following:
in $ millions
10
2016
2015
Information Technology
15
12
Publishing and Printing
13
–
Consultancy, Legal and Other Fees
8
4
Information Resources
6
6
Rental and Maintenance
6
5
Subscription to Organisations
5
4
Travel and Accommodation
5
5
IT Operating Lease
2
5
Audit Fee
1
1
CAPITAL AND RESERVES
10.1 The issued and paid-up capital is wholly-owned by the Government of the Republic
of Singapore.
10.2 The Authority manages its capital and reserves at an appropriate and adequate level, in
pursuit of the Authority’s principal objects, as set out in Section 4 of the Monetary Authority
of Singapore Act (Cap. 186, 1999 Revised Edition) that is, to maintain price stability
conducive to sustainable economic growth, foster a sound and reputable financial centre,
grow Singapore as an internationally competitive financial centre and ensure prudent and
effective management of the official foreign reserves of Singapore. As required by the
Constitution of the Republic of Singapore, the Authority has to determine and safeguard
the past reserves of the Authority which were not accumulated during the current term of
office of the Government.
10.3 Taking into consideration the Authority’s capital and reserves needs for its principal objects,
the Authority conducts capital and reserves adequacy assessment regularly. It includes a
comprehensive assessment of risks that the Authority is exposed to, the measurement,
monitoring and stress testing of these risks and an evaluation of the adequacy of the
Authority’s capital and reserves in relation to these risks.
10.4 The return of profit to the Singapore Government, from the General Reserve Fund and/or
from the net profit for each financial year, is determined by the Authority and the remainder
of the net profit, if any, is credited to the General Reserve Fund, in accordance with Section
6 of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition).
98
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
11
GENERAL RESERVE FUND
The General Reserve Fund is established under Section 6(1) of the Monetary Authority of Singapore
Act (Cap. 186, 1999 Revised Edition).
12
CURRENCY FUND RESERVES
12.1 The Currency Fund, established under Section 21 of the Currency Act (Cap. 69, 2002 Revised
Edition), is maintained and managed by the Authority in the manner prescribed by the Act.
12.2 The assets and liabilities of the Currency Fund as at 31 March are as follows:
in $ millions
Note
2016
2015
223
227
14.1(a)
51,930
47,812
52,153
48,039
38,506
36,130
833
849
39,339
36,979
2,925
1,668
External Assets
Gold
Foreign Investments
Less:
Liabilities
Active Currency in Circulation
Currency Held by the Authority
Currency in Circulation
Foreign Financial Liabilities
Provisions and Other Liabilities
Currency Fund Reserves
13
SINGAPORE DOLLAR SECURITIES
Singapore Dollar Securities comprise:
14.1(a)
471
190
3,396
1,858
42,735
38,837
9,418
9,202
in $ millions
2016
2015
Singapore Government Bonds
8,609
7,713
Singapore Dollar Corporate Bonds
52
10
8,661
7,723
Annual Report 2015/16
99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
14
FOREIGN FINANCIAL ASSETS AND LIABILITIES
14.1(a) These comprise the following:
in $ millions
Note
General Reserve
Fund
Currency Fund
2016
2015
2016
2015
2016
2015
53,175
53,384
Total
Foreign Investments
Bank Balances and
Deposits
47,311
48,305
5,864
5,079
Securities (including
Treasury Bills, Bonds
and Equities)
251,221
257,089
44,390
40,981
Other Foreign Investments
6,773
7,375
1,676
1,752
8,449
9,127
Reserve Tranche
2,175
1,058
–
–
2,175
1,058
Special Drawing Rights (SDRs)
1,412
1,654
–
–
1,412
1,654
224
247
–
–
224
247
8
8
–
–
8
8
96
96
–
–
96
96
309,220
315,832
51,930
47,812
15,635
14,765
2,925
1,668
18,560
16,433
1,412
1,408
–
–
1,412
1,408
17,047
16,173
2,925
1,668
19,972
17,841
International Monetary
Fund (IMF) Assets
Loans under New
Arrangements to
Borrow
14.2
21.1(c)
Poverty Reduction and
Growth Facility –
Heavily Indebted
Poor Countries
Shareholding in Bank
for International
Settlements (BIS)
14.3
Foreign Financial Assets
Foreign Borrowings and
Other Liabilities
IMF SDR Allocations
Foreign Financial
Liabilities
100
Monetary Authority of Singapore
295,611 298,070
14.1(b)
361,150 363,644
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
14.1(b) The Authority’s allocations of Special Drawings Rights in IMF has been reclassified more
appropriately from “Provision and Other Liabilities” to “Foreign Financial Liabilities” in
the financial year ended 31 March 2016 and its comparative has also been reclassified
accordingly to be consistent with the presentation in the current financial year.
14.2 International Monetary Fund (IMF) Assets
The Reserve Tranche represents the amount of the paid-up portion of the Singapore
quota. Special Drawing Rights (SDRs) are interest-yielding balances with IMF that can be
exchanged for convertible currencies. Singapore participates in the Poverty Reduction
and Growth Facility-Heavily Indebted Poor Countries (PRGF-HIPC). The PRGF-HIPC
outstanding balance as at 31 March 2016 is SDR4.0 million [$7.7 million] (31 March 2015:
SDR4.0 million [$7.7 million]), being the balance in Post-Special Contingent Account-2 with
IMF which was transferred to the PRGF-HIPC on 24 April 2001 as an interest-free deposit
maturing at the end of 2018.
14.3 Bank for International Settlements (BIS)
15
The Authority’s shareholding in the BIS comprises the 25% paid-up value of 4,285 (31 March
2015: 4,285) shares with a nominal value of SDR5,000 ($9,488) (31 March 2015: SDR5,000
[$9,462]) each.
OTHER ASSETS
These comprise the following:
in $ millions
2016
2015
Loans, Deposits and Other Receivables
6,630
6,484
Receivable from MAS Bills Issued
4,293
5,387
Repurchase Agreements with Singapore Government
3,051
2,797
13,974
14,668
Annual Report 2015/16
101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
16
PROPERTY AND OTHER FIXED ASSETS
in $ millions
Leasehold
Land
Buildings
Computer
Building Hardware
Improveand
ments Software
Furniture,
Fixtures,
Motor
Vehicles
and Other
Equipment
Work-inProgress
Total
COST
As at 1.4.2014
48
171
94
117
29
24
483
Additions
–
–
–
4
1
26
31
Disposals
–
–
–
(6)
(2)
–
(8)
Transfers
–
–
13
13
–
(26)
–
48
171
107
128
28
24
506
307
As at 31.3.2015
ACCUMULATED
DEPRECIATION
As at 1.4.2014
17
88
91
85
26
–
Disposals
–
–
–
(6)
(1)
–
(7)
Depreciation Charge
1
4
3
12
2
–
22
As at 31.3.2015
18
92
94
91
27
–
322
NET BOOK VALUE
AS AT 31.3.2015
30
79
13
37
1
24
184
COST
As at 1.4.2015
48
171
107
128
28
24
506
Additions
–
–
–
1
–
28
29
Disposals
–
–
(1)
(2)
(4)
–
(7)
Transfers
–
–
14
11
4
(29)
–
48
171
120
138
28
23
528
18
92
94
91
27
–
322
–
–
(1)
(2)
(4)
–
(7)
As at 31.3.2016
ACCUMULATED
DEPRECIATION
As at 1.4.2015
Disposals
Depreciation Charge
102
1
4
2
14
2
–
23
As at 31.3.2016
19
96
95
103
25
–
338
NET BOOK VALUE
AS AT 31.3.2016
29
75
25
35
3
23
190
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
17
DEPOSITS OF FINANCIAL INSTITUTIONS
in $ millions
Banks
Finance Companies
Securities Companies
2016
2015
23,303
22,635
381
359
10
9
23,694
23,003
International Financial Institutions
960
459
Foreign Central Banks and Others
2,169
2,321
26,823
25,783
Deposits from banks and finance companies in Singapore include the minimum cash balances
maintained by banks and finance companies with the Authority as required under the Banking Act
(Cap. 19, 2008 Revised Edition) and the Finance Companies Act (Cap. 108, 2011 Revised Edition)
respectively. Deposits from securities companies represent statutory deposits from holders of capital
markets services licences required under the Securities and Futures (Licensing and Conduct of
Business) Regulations.
18
MAS BILLS, PROVISIONS AND OTHER LIABILITIES
18.1 As part of the Authority’s money market operations to manage the liquidity in the banking
system, the Authority issues its own short-term bills.
18.2 Provisions have been made for contingencies under Section 6(2) of the Monetary Authority
of Singapore Act (Cap. 186, 1999 Revised Edition). Other liabilities include borrowings
from banks, borrowings under reverse repurchase agreements, creditors, Sukuk payable,
accounts payable and accruals.
18.3 During the financial year ended 31 March 2016, SSPL, a wholly-owned subsidiary of the
Authority, issued $140 million (2015: $140 million) Sukuk trust certificates with one year
maturity and an income distribution rate of 1.28% (2015: 0.39%) per annum. The Sukuk
issuance by SSPL is structured on the sale-and-leaseback or Al Ijarah of property assets
of the Authority. Under agreements with SSPL, the Authority will sell, leaseback, provide a
purchase undertaking of the property assets and receive from and make periodic payments
to SSPL.
Annual Report 2015/16
103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
19
AMOUNTS DUE TO SINGAPORE GOVERNMENT
19.1 The amounts due to the Singapore Government comprise the following:
in $ millions
Amounts due to Singapore Government, arising from
Repurchase Agreements
Balances and Deposits of Singapore Government
2016
2015
3,051
2,797
122,248
113,318
125,299
116,115
19.2 Contribution to the Consolidated Fund is in accordance with the Statutory Corporations
(Contributions to Consolidated Fund) Act (Cap. 319A, 2004 Revised Edition) and is based
on 17% (2015: 17%) of the net profit for the year. In the financial year ended 31 March 2016,
no contribution to the Consolidated Fund (2015: $nil) is payable as the cumulative loss from
previous financial years is brought forward and offset against the net profit for the year.
20
21
STATUTORY DEPOSITS OF INSURANCE COMPANIES, REMITTANCE
LICENSEES AND CAPITAL MARKETS SERVICES LICENSEES
Statutory bank deposits, guarantees and Singapore Government bonds of insurance companies,
remittance licensees and capital markets services licensees, are retained by the Authority under the
Insurance Act (Cap. 142, 2002 Revised Edition), the Money-changing and Remittance Businesses
Act (Cap. 187, 2008 Revised Edition) and the Securities and Futures Act (Cap. 289, 2006 Revised
Edition) respectively, and in the events specified, dealt with accordingly under the respective Acts.
COMMITMENTS
21.1 International Monetary Fund (IMF)
104
a)
On 15 December 2010, the IMF’s Board of Governors passed a resolution that would
double the Fund’s total quotas and result in a major realignment of quota shares
among members. In February 2016, Singapore paid up 25% of its full quota increase.
As at 31 March 2016, the unpaid portion of the Singapore quota due to IMF under
Section 4 of Article III of the Articles of Agreement is $5,328 million (31 March 2015:
$1,669 million).
b)
On 20 April 2012, the Authority announced that Singapore would make a bilateral
contingent loan of US$4.0 billion ($5.4 billion) (31 March 2015: US$4.0 billion
[$5.5 billion]) to the IMF as part of the broader international effort to boost IMF’s
resources and strengthen global economic and financial stability.
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
c)
As a participant in the IMF’s ‘New Arrangements to Borrow’ (NAB), the Authority
undertakes to provide a credit line in the event of a financial emergency as specified
by the NAB. With the quota increase paid in February 2016, Singapore’s NAB
commitment decreased from SDR1,277 million to SDR649 million. As at 31 March
2016, the loans granted by the Authority under the NAB totalled SDR118 million
($224 million) (31 March 2015: SDR131 million [$247 million]). The remaining undrawn
credit is SDR531 million ($1,007 million) as at 31 March 2016 (31 March 2015:
SDR1,146 million [$2,169 million]).
d)
During the financial year ended 31 March 2014, the Authority received SDR10.3 million
($20.1 million) being Singapore’s share of the second distribution of SDR1,750 million
($3,402 million) by IMF arising from the profits made in the IMF’s gold sales. Together
with the Authority’s share of SDR4.1 million ($8 million) from the first distribution
received during the financial year ended 31 March 2013, Singapore pledged to
contribute its share of both distributions to the Poverty Reduction and Growth Trust
(“PRGT”) subsidy account, subject to legislative amendments.
21.2 Bank for International Settlements (BIS)
The Authority has a commitment, amounting to SDR16.1 million ($30.6 million) as at 31 March
2016 (31 March 2015: SDR16.1 million [$30.5 million]), in respect of the uncalled portion of
its shareholding in the BIS.
21.3 Repurchase Agreements with Central Banks and Monetary Authority
The Authority entered into bilateral repurchase agreements totalling US$5,500 million ($7,406
million) (31 March 2015: US$5,500 million [$7,545 million]) with various Asian central banks
and a monetary authority to provide liquidity assistance in times of emergency. For the
financial year ended 31 March 2016, there was no request for liquidity assistance from any
counterpart.
21.4 Currency Swap Arrangements with Central Banks and Monetary Authority
a)
The Authority renewed the bilateral currency swap arrangement of CNY300 billion
($64 billion) with the People’s Bank of China for a further term of three years with effect
from 7 March 2016. The arrangement allows the Authority to provide Chinese Yuan
liquidity to financial institutions in Singapore for trade and financial stability purposes.
As at 31 March 2016, the Authority has a currency swap of CNY10 billion ($2.1 billion)
(31 March 2015: CNY10 billion [$2.2 billion]) with the People’s Bank of China.
b)
The Authority is Singapore’s Swap Providing / Requesting Party in the Chiang Mai
Initiative Multilateralisation (CMIM) Agreement involving the ASEAN member states,
China (including the Hong Kong Monetary Authority, China), Japan and Korea. The
CMIM Agreement, effective from 24 March 2010, provides financial support through
Annual Report 2015/16
105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
currency swap transactions, to address balance of payments and short-term liquidity
difficulties in the region, and supplements existing international financial arrangements.
In May 2012, the Chiang Mai Initiative Multilateralisation (CMIM) members agreed to
strengthen the regional financial safety net and double the total size of the currency
swap transactions with members to US$240 billion. The Authority’s commitment
is US$9,104 million ($12,259 million) (31 March 2015: US$9,104 million [$12,489
million]) and the Authority can swap Singapore dollars for US dollars up to 2.5 times
Singapore’s commitment.
c)
The Authority and the Bank of Japan, acting as the agent for the Minister of Finance of
Japan, signed the third Bilateral Swap Arrangement (BSA) on 21 May 2015. Under the
agreement, the Authority can swap Singapore dollars for US dollars up to US$3,000
million ($4,040 million) while the Bank of Japan can swap Japanese Yen for up to
US$1,000 million ($1,347 million).
d)
The Authority is a participant in the multilateral ASEAN Swap Arrangement (ASA)
together with other ASEAN central banks and a monetary authority to provide shortterm foreign exchange liquidity support for member countries that may experience
balance of payments difficulties. In November 2015, the ASA was renewed for an
additional two years up to 16 November 2017. Under this agreement, the Authority’s
commitment is US$300 million ($404 million) (31 March 2015: US$300 million
[$412 million]).
e)
Aside from the CNY swap with the People’s Bank of China, there was no other
drawdown of any of the currency swap arrangements, in note 21.4, in financial years
ended 31 March 2015 and 31 March 2016.
21.5 Liquidity Loan Facility
The Authority entered into an agreement with the Singapore Deposit Insurance Corporation
Limited (SDIC) on 9 February 2012 where the Authority may provide the SDIC a contingent
liquidity facility of up to $20 billion (31 March 2015: $20 billion), in the event a Deposit
Insurance Scheme member fails and liquidity is needed for compensation payments to
insured depositors. There was no request and drawdown on the facility in financial years
ended 31 March 2015 and 31 March 2016.
21.6 Capital Expenditure Commitments
Capital expenditure relating to fixed assets not provided for in the consolidated financial
statements is as follows:
in $ millions
Amount contracted for
106
Monetary Authority of Singapore
2016
2015
21
19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
21.7 Leases
a)
Future minimum lease payments under non-cancellable operating leases are as
follows:
in $ millions
Less than 1 year
1 to 5 years
b)
2015
2
1
2
2
4
3
Future minimum lease rental receipts under non-cancellable operating leases are as
follows:
in $ millions
22
2016
2016
2015
Less than 1 year
7
8
1 to 5 years
7
6
14
14
FINANCIAL RISK MANAGEMENT
22.1 The Risk Committee, chaired by an independent Board Director, assists the Board of Directors
in providing oversight and guidance over the management of risks assumed by the Authority.
This encompasses the management of financial risks inherent in the Authority’s investment
portfolios, amongst other organisational risks faced by the Authority.
22.2 The Risk Management Department provides senior management and the Risk Committee
with regular reports of the risk profiles of the Authority’s investments. These reports cover
risk measurement and analysis of the Authority’s investment portfolios. The department
also formulates risk policies and controls, and performs independent risk monitoring of the
portfolios in accordance with the stipulated investment guidelines.
22.3 Market Risk
a)
Market risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market prices and includes currency, interest rate
and other price risks.
i)
Currency risk is the risk of loss on foreign assets and liabilities arising from
changes in foreign exchange rates.
ii)
Interest rate risk is the risk of loss arising from changes in market interest rates.
Annual Report 2015/16
107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
iii)
b)
Other price risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices (other than those
arising from interest rate risk or currency risk), whether those changes are
caused by factors specific to the individual financial instrument or its issuer, or
factors affecting all similar financial instruments traded in the market.
Market risk is managed through regular monitoring of the market risk exposure of
the Authority’s investments, the diversification of the Authority’s investments across
different markets, and the establishment of investment risk tolerance and controls at
both the aggregate and individual portfolio levels.
22.4 Credit Risk
a)
Credit risk is the risk of loss arising from a party’s failure to discharge an obligation
under a financial contract and includes counterparty and issuer credit risk.
b)
The Authority’s credit risks are managed by transacting with entities of acceptable
creditworthiness within assigned limits. Credit risks are also mitigated by diversifying
credit exposures across counterparties and issuers and through collateral
arrangements with counterparties whom the Authority has signed the International
Swaps and Derivatives Association (ISDA) Credit Support Annex.
c)
The Authority manages issuer credit risk by imposing minimum credit rating
requirements on the investment of fixed income securities. Single issuer limits are
placed to control the credit exposure to any one issuer and to mitigate the extent of
loss resulting from a default.
22.5 Country Risk
The Authority’s foreign assets are exposed to country credit risk arising from political,
economic and financial events in the country of investment. Country limits are established
to control the Authority’s credit risk exposure to individual countries.
22.6 Liquidity Risk
108
Liquidity risk is the risk arising from the inability to sell a financial asset at close to its fair value
at short notice due to inadequate market depth or market disruptions. The Authority manages
liquidity risk by investing mostly in liquid financial instruments and markets, and imposing
limits on investments to ensure sufficient diversification and through regular monitoring of
the liquidity profile of the Authority’s investments.
Monetary Authority of Singapore
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
23
RELATED PARTY TRANSACTIONS
23.1 The Financial Sector Development Fund (the “Fund”) maintains a non-interest bearing
current account with the Authority to facilitate grant disbursements. The Fund’s current
account balance with the Authority as at 31 March 2016 was $0.7 million (31 March 2015:
$0.4 million).
23.2 The Authority also accepted deposits from the Fund, in the ordinary course of business and
at arm’s length, incurring interest expense disclosed below:
in $ thousands
Interest Expense
2016
2015
557
282
The Fund’s deposit balance with the Authority as at 31 March 2016 was $nil million
(31 March 2015: $126 million).
24
SEGMENT REPORTING
Owing to their integrated nature, the Authority’s operations, including those of its subsidiary,
SSPL, comprise one main operating segment only, i.e. the conduct of monetary policy, issuance
of currency, management of the official foreign reserves and acting as the banker to and financial
agent of the Government, for segment reporting purposes. In addition, the Authority’s operations
are mainly in one geographical area, Singapore. All other segment information are below the
quantitative thresholds for separate disclosure.
25
NEW OR REVISED ACCOUNTING STANDARDS AND INTERPRETATIONS
New or revised accounting standards and interpretations to existing standards have been issued
that are relevant for the Authority’s accounting periods beginning after 1 April 2015 or later periods
and which the Authority has not early adopted. The Authority does not expect the following
revised accounting standards that are applicable, to have a significant impact on the Authority’s
consolidated financial statements.
Effective for annual periods beginning on or after 1 January 2016
Amendments to FRS 1 Presentation of Financial Statements: Disclosure Initiative
The amendments to FRS 1 clarify guidance on materiality and aggregation, the presentation of
subtotals, the structure of financial statements and the disclosure of accounting policies.
Annual Report 2015/16
109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2016
Amendments to FRS 16 Property, Plant and Equipment
The amendments to FRS 16 explicitly state that revenue-based methods of depreciation are not
appropriate for property, plant and equipment as they may reflect factors other than the diminution
of economic benefits of the asset such as technical or commercial obsolescence or wear and tear
while an asset remains idle.
Effective for annual periods beginning on or after 1 January 2017
Amendments to FRS 7 Statement of Cash Flows: Disclosure Initiative
The amendments to FRS 7 require additional disclosures to enable the user of financial statements
to evaluate changes in liabilities arising from financing activities, such as providing a reconciliation
between opening and closing balances in the balance sheet for liabilities arising from financing
activities, and its link to the statement of cash flows.
26
AUTHORISATION OF CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements for the year ended 31 March 2016 were authorised by the
Board of Directors for issuance and signed by Chairman and Managing Director on 24 June 2016.
110
Monetary Authority of Singapore
Annual Report 2015/16
111
80
Monetary Authority of Singapore
STATISTICAL
ANNEXES
A. MONETARY STATISTICS
114
115
116
117
A1. Money Supply
A2. Official Foreign Reserves
A3. Exchange Rates
A4. Domestic Interest Rates
B. COMMERCIAL BANKS
118
119
120
121
122
B1. Assets And Liabilities
B2. Loans And Advances By
Industrial Classification
B3. Types Of Loans And Advances To
Non-Bank Customers
B4. Types Of Deposits Including
S$NCDS
B5. Liquidity Position
C. FINANCE COMPANIES
123
C1. Assets And Liabilities
D. MERCHANT BANKS
124
125
D1. Consolidated Assets And Liabilities
D2. Assets And Liabilities Of Domestic
Unit Operations
E. INSURANCE INDUSTRY
126
E1. Assets And Premiums
F. NON-BANK FINANCIAL INSTITUTIONS
127
F1. Central Provident Fund Board
G. DOMESTIC CAPITAL MARKET
128
G1. Net Funds Raised In The Domestic
Capital Market
H. ASIAN DOLLAR MARKET
129
130
H1. Assets And Liabilities
H2. Maturity Transformation By Asian
Currency Units
Annual Report 2015/16
113
114
Monetary Authority of Singapore
MONEY SUPPLY
233,620.3
151,731.7
81,822.9
65.7
297,558.9
9,196.0
306,754.9
Quasi-money
Fixed deposits
Savings and other deposits
S$NCDs
Money Supply (M2)
Net deposits with finance
companies
Money Supply (M3)
342,387.5
333,411.1
8,976.4
257,707.3
155,121.9
102,567.4
18.0
75,703.8
18,997.4
56,706.4
2008
378,526.0
371,207.9
7,318.1
277,735.8
156,731.1
121,004.7
0.0
93,472.1
20,216.5
73,255.6
2009
410,109.3
403,096.1
7,013.2
290,609.1
154,417.3
136,171.8
20.0
112,487.0
22,299.5
90,187.5
2010
451,666.3
443,358.1
8,308.2
312,766.2
160,699.6
151,901.6
165.0
130,591.9
24,690.3
105,901.6
2011
485,915.4
475,392.5
10,522.9
334,683.4
175,270.8
159,322.4
90.2
140,709.1
26,361.3
114,347.8
2012
506,900.0
495,907.8
10,992.2
341,310.5
171,989.3
168,838.4
482.8
154,597.3
28,851.6
125,745.7
2013
524,166.4
512,430.8
11,735.6
352,213.1
172,712.0
179,110.3
390.8
160,217.7
31,506.9
128,710.8
2014
532,944.5
520,239.7
12,704.8
359,793.9
174,465.4
184,606.5
722.0
160,445.8
34,042.3
126,403.5
2015
545,525.0
533,044.2
12,480.8
373,310.3
186,098.4
186,620.2
591.7
159,733.9
34,609.6
125,124.3
S$ Million
March
2016
1 Figures exclude commemorative, numismatic and bullion coins issued by the Monetary Authority of Singapore and cash held by commercial banks and other financial institutions.
The Board of Commissioners of Currency, Singapore, merged with the Monetary Authority of Singapore in October 2002.
63,938.6
16,668.5
47,270.1
2007
Money Supply (M1)
Currency in active circulation 1
Demand deposits
End of Period
A.1 MONETARY STATISTICS:
Annual Report 2015/16
115
174,196.3
544.1
255.8
249,546.1
250,346.0
2008
187,809.1
2,205.3
375.5
261,374.6
263,955.4
2009
225,754.2
1,969.8
421.0
286,563.3
288,954.1
2010
237,737.0
1,732.9
1,080.8
305,589.5
308,403.2
2011
259,307.1
1,641.1
1,115.8
313,987.3
316,744.2
2012
273,065.1
1,697.7
1,296.7
341,734.8
344,729.2
2013
256,860.4
1,677.9
1,084.1
337,676.1
340,438.1
2014
1 With effect from May 1999, the book value of foreign reserve assets are translated at market exchange rates prevailing at the end of each reporting month.
162,956.8
503.9
Special Drawing Rights (SDRs)
Total Foreign Reserves (US$ million)
128.6
233,913.1
Gold & Foreign Exchange
Reserve Position in the IMF
234,545.6
Total Foreign Reserves
2007
OFFICIAL FOREIGN RESERVES 1
End of Period
A.2 MONETARY STATISTICS:
247,747.4
1,717.7
852.6
348,420.5
350,990.8
2015
246,195.8
1,412.3
1,419.5
328,694.3
331,526.1
S$ Million
March
2016
116
Monetary Authority of Singapore
1.4148
1.3738
2.0771
2.6162
1.3090
1.2016
0.1306
4.4874
0.1817
0.4247
0.0424
0.0147
2008
Note: Currencies quoted are those frequently requested from the Authority.
US Dollar
100 Japanese Yen
Euro
Pound Sterling
Swiss Franc
Australian Dollar
100 Korean Won
100 New Taiwan Dollar
Hong Kong Dollar
Malaysian Ringgit
Thai Baht
100 Indonesian Rupiah
2007
1.5071
1.2806
2.0638
3.0161
1.2563
1.2624
0.1622
4.5870
0.1932
0.4384
0.0436
0.0165
EXCHANGE RATES
Period Average
1.4545
1.5562
2.0242
2.2737
1.3407
1.1473
0.1143
4.4023
0.1876
0.4126
0.0424
0.0140
2009
A.3 MONETARY STATISTICS:
1.3635
1.5543
1.8095
2.1073
1.3089
1.2524
0.1180
4.3292
0.1755
0.4234
0.0430
0.0150
2010
1.2579
1.5780
1.7495
2.0161
1.4201
1.2971
0.1135
4.2798
0.1616
0.4111
0.0413
0.0143
2011
1.2497
1.5672
1.6071
1.9803
1.3332
1.2940
0.1109
4.2262
0.1611
0.4046
0.0402
0.0133
2012
1.2513
1.2840
1.6621
1.9573
1.3503
1.2107
0.1144
4.2155
0.1613
0.3973
0.0408
0.0120
2013
1.2671
1.1996
1.6837
2.0873
1.3859
1.1431
0.1204
4.1812
0.1634
0.3873
0.0390
0.0107
1.3748
1.1364
1.5267
2.1023
1.4295
1.0339
0.1215
4.3298
0.1773
0.3534
0.0402
0.0103
1.4049
1.2185
1.5484
2.0110
1.4129
1.0126
0.1168
4.2390
0.1807
0.3344
0.0394
0.0104
S$ Per Foreign Currency
1st Qtr
2014
2015
2016
Annual Report 2015/16
117
2.66
2.76
S$ SIBOR
1-month
3-month
2.67
2.91
3.04
1.14
1.33
0.33
0.69
1.12
0.44
0.70
0.29
0.33
0.62
0.25
0.29
0.37
0.56
0.18
5.38
2009
0.27
0.34
0.52
0.38
0.56
0.22
0.27
0.54
0.25
0.21
0.30
0.48
0.14
5.38
2010
0.23
0.34
0.51
0.30
0.41
0.16
0.23
0.50
0.22
0.17
0.24
0.40
0.12
5.38
2011
0.24
0.43
0.69
0.31
0.39
0.16
0.24
0.48
0.17
0.14
0.19
0.30
0.11
5.38
2012
0.19
0.27
0.41
0.32
0.38
0.19
0.26
0.53
0.17
0.14
0.20
0.32
0.10
5.38
2013
0.16
0.23
0.33
0.36
0.41
0.18
0.25
0.53
0.17
0.14
0.21
0.32
0.11
5.35
2014
0.20
0.32
0.48
0.81
0.92
0.22
0.29
0.55
0.17
0.17
0.23
0.33
0.12
5.35
0.43
0.62
0.87
1.09
1.24
0.30
0.38
0.58
0.17
0.19
0.25
0.35
0.14
5.35
Per Cent Per Annum
1st Qtr
2015
2016
Note: Interest rates for banks (except for Prime Lending Rate) and finance companies refer to average of end of month rates.
1 Average of 10 leading banks.
Note: Domestic interbank rates have been discontinued with effect from 1 January 2014 and replaced with S$ SIBOR. US$ SIBOR rates have
2 Average of all finance companies.
been also replaced with the US$ LIBOR, the most widely-used US$ interest rate benchmark, so as to align with the larger global US$ market.
5.25
5.30
5.25
0.75
1.09
1.57
0.33
Finance Companies 2
Fixed Deposit Rate
3-month
6-month
12-month
Savings Deposit Rate
US$ LIBOR
1-month
3-month
6-month
0.42
0.54
0.73
0.23
0.53
0.64
0.85
0.25
0.49
0.59
0.90
0.26
5.38
5.33
2008
Banks1
Prime Lending Rate
Fixed Deposit Rate
3-month
6-month
12-month
Savings Deposit Rate
2007
DOMESTIC INTEREST RATES
Period Average
A.4 MONETARY STATISTICS:
118
Monetary Authority of Singapore
9,489.7
65,112.3
9,035.2
51,389.2
41,436.9
314,985.8
65.7
165,520.8
17,225.7
95,867.3
52,427.8
1,254.3
59,595.5
582,859.0
Liabilities
Paid-up capital and reserves
Deposits of non-bank customers
S$NCDs issued
Amounts due to banks
In Singapore
ACUs
Outside Singapore
Bills payable
Other liabilities
Total Assets/Liabilities
668,298.4
51,315.7
347,507.4
18.0
184,405.1
18,283.9
92,313.0
73,808.1
904.0
84,148.2
1,739.8
13,466.0
0.0
217,089.8
52,572.1
73,134.5
91,383.2
98,715.0
84,826.2
66,696.1
18,130.1
13,889.0
272,175.4
1,772.9
9,530.4
0.0
194,828.8
59,924.1
58,945.9
75,958.8
91,943.8
78,349.4
59,934.1
18,415.3
13,594.3
233,393.9
2008
Assets
Cash in hand
Balances with MAS
S$NCDs held
Amounts due from banks
In Singapore
ACUs
Outside Singapore
Investments
In Singapore
Government securities
Others
Outside Singapore
Loans and advances to non-bank
customers
of which bills financing
Fixed and other assets
2007
ASSETS AND LIABILITIES
End of Period
2009
706,814.2
54,967.6
391,495.1
0.0
176,394.4
13,869.4
113,588.1
48,936.9
1,023.4
82,933.6
11,308.5
58,598.7
2,026.8
13,999.9
0.0
227,923.9
57,188.2
87,208.0
83,527.7
122,968.0
98,742.6
81,318.8
17,423.8
24,225.6
281,296.8
B.1 COMMERCIAL BANKS:
781,607.4
62,441.7
433,757.8
20.0
188,564.9
14,189.7
119,350.8
55,024.4
1,096.3
95,726.8
20,050.4
78,411.4
2,219.9
15,878.7
0.0
232,272.3
77,972.8
69,152.1
85,147.4
130,081.3
107,526.2
84,853.4
22,672.8
22,555.2
322,743.8
2010
855,811.4
64,845.4
483,110.3
175.0
226,427.6
9,900.5
147,478.7
69,048.4
1,495.7
79,757.3
44,582.2
60,799.7
2,796.4
17,815.3
9.9
216,223.0
58,857.6
62,125.1
95,240.3
137,711.5
118,078.4
91,417.5
26,660.9
19,633.2
420,455.5
2011
911,009.0
66,305.4
518,840.7
292.0
244,892.2
12,088.7
162,746.8
70,056.7
1,778.4
78,900.3
56,292.0
59,620.6
2,756.0
19,503.3
201.8
184,902.7
44,059.5
44,061.6
96,781.5
153,318.2
129,130.0
98,422.4
30,707.6
24,188.2
490,706.5
2012
76,103.1
560,011.5
1,147.0
318,251.5
11,353.0
211,980.9
94,917.6
1,652.8
100,354.8
97,180.8
52,846.8
65,695.4
4,396.2
22,218.5
425.0
170,139.1
26,960.5
51,660.2
91,518.4
194,890.5
149,350.6
108,845.3
40,505.3
45,539.8
599,756.0
2015
70,995.6
550,363.9
390.8
339,195.4
12,876.3
224,430.8
101,888.2
1,515.8
75,343.9
61,236.0
2,917.1
20,311.6
0.0
183,016.5
32,391.8
46,889.1
103,735.6
184,960.5
154,168.8
106,234.3
47,934.5
30,791.9
607,200.5
2014
102,850.2
84,633.3
573,399.3
829.2
311,520.9
12,982.4
204,075.9
94,462.6
1,786.2
42,070.6
69,427.7
3,673.5
23,255.6
237.5
189,021.4
32,304.0
55,875.4
100,842.0
198,824.7
151,065.2
110,292.1
40,773.1
47,759.3
590,578.7
973,226.8 1,059,642.3 1,057,520.6 1,075,019.1
66,291.7
537,582.9
692.8
293,986.6
11,244.2
206,129.6
76,612.7
1,624.2
73,048.7
79,657.4
53,362.6
2,807.5
32,107.0
210.0
142,986.5
27,601.4
29,216.8
86,168.3
167,478.7
139,193.4
98,213.9
40,979.5
28,285.3
574,274.4
2013
S$ Million
March
2016
Annual Report 2015/16
119
73,139.1
22,269.0
Housing and bridging loans
General commerce
14,458.1
Others
233,393.9
35,070.9
Professional and private individuals
Total
31,360.4
Non-bank financial institutions
9,129.8
37,508.9
Building and construction
Transport, storage and
communication
10,225.8
232.1
Agriculture, mining and quarrying
Manufacturing
2007
272,175.4
25,060.6
37,872.3
33,506.1
9,211.7
24,861.6
79,587.0
50,006.6
11,786.1
283.2
2008
281,296.8
24,208.0
39,476.3
32,465.3
10,612.3
23,357.4
91,429.5
48,940.6
10,547.3
260.3
2009
322,743.8
25,087.2
42,396.1
37,984.6
9,018.1
30,982.9
112,381.3
53,593.9
10,917.6
382.2
2010
420,455.5
32,387.8
52,669.8
55,550.9
11,883.2
48,809.6
131,106.5
67,304.4
19,023.5
1,719.7
2011
490,706.5
34,943.8
60,451.0
64,895.1
13,089.2
57,349.8
152,003.0
78,704.0
27,166.3
2,104.3
2012
LOANS AND ADVANCES BY INDUSTRIAL CLASSIFICATION
End of Period
B.2 COMMERCIAL BANKS:
574,274.4
44,823.9
65,688.0
76,387.4
17,162.7
75,888.3
166,542.0
91,274.7
31,601.6
4,905.9
2013
607,200.5
43,039.5
68,751.3
80,984.1
20,045.3
78,082.4
177,434.6
103,712.6
29,614.7
5,536.0
2014
599,756.0
41,101.8
67,493.3
68,697.9
20,810.4
65,954.1
184,680.6
119,405.2
26,000.9
5,611.6
2015
590,578.7
39,809.3
66,153.7
70,488.7
19,252.9
56,798.3
185,372.9
119,983.6
26,972.1
5,747.2
S$ Million
March
2016
120
Monetary Authority of Singapore
207,489.8
233,393.9
Total
6,431.8
Trust receipts
Term loans and others
9,035.2
10,437.2
Bills discounting
Overdrafts
2007
272,175.4
245,917.2
6,504.0
9,489.7
10,264.5
2008
281,296.8
255,140.9
4,874.3
11,308.5
9,973.0
2009
322,743.8
288,400.2
5,374.6
20,050.4
8,918.7
2010
420,455.5
360,554.2
6,727.3
44,582.2
8,591.8
2011
490,706.5
417,662.6
7,429.4
56,292.0
9,322.5
2012
2013
574,274.4
475,810.7
8,819.7
79,657.4
9,986.6
TYPES OF LOANS AND ADVANCES TO NON-BANK CUSTOMERS
End of Period
B.3 COMMERCIAL BANKS:
607,200.5
514,216.2
8,376.0
75,343.8
9,264.5
2014
599,756.0
527,964.2
9,419.6
52,846.9
9,525.3
2015
590,578.7
530,893.3
8,654.8
42,070.6
8,960.0
S$ Million
March
2016
Annual Report 2015/16
121
Total
Others
S$NCDs (net)
Savings
Fixed
Demand
315,051.6
988.5
65.7
86,496.0
175,421.2
52,080.2
2007
347,525.4
726.6
18.0
109,033.5
175,646.9
62,100.4
2008
391,495.1
881.3
0.0
129,995.1
179,571.8
81,047.0
2009
433,777.8
996.3
20.0
146,802.5
185,564.8
100,394.2
2010
TYPES OF DEPOSITS INCLUDING S$NCDS
End of Period
B.4 COMMERCIAL BANKS:
483,275.3
1,585.1
165.0
163,782.5
197,609.5
120,133.3
2011
518,930.9
2,431.7
90.2
171,785.5
213,657.9
130,965.7
2012
538,065.7
2,549.9
482.8
181,865.7
210,490.5
142,676.7
2013
550,754.7
3,295.4
390.8
192,101.8
207,959.3
147,007.3
2014
560,733.5
4,079.6
722.0
197,140.1
216,838.7
141,953.0
2015
573,991.0
4,145.1
591.7
198,664.5
228,977.5
141,612.2
S$ Million
March
2016
122
Monetary Authority of Singapore
Liquid Assets
(a) Minimum Requirement
(b) Total Actual Liquid Assets
(c) Free Liquid Assets (b) - (a)
* In view of changes to the local liquidity regulations from 1 Jan 2016, the content of Table B.5 is updated accordingly. Please contact us at [email protected] if you have any queries.
167,843.0
310,538.6
142,695.6
Period Average
LIQUIDITY POSITION
S$ Million
1st Qtr
2016*
B.5 COMMERCIAL BANKS:
Annual Report 2015/16
123
988.5
0.0
9,743.1
1,587.6
2,755.6
0.0
5,399.9
1,456.9
123.0
881.7
0.0
10,179.7
1,767.1
2,713.1
0.0
5,699.4
1,277.7
167.9
1,683.3
10,087.2
9,939.5
140.0
7.7
256.9
754.5
12,781.8
Liabilities
Capital and reserves
Deposits
Fixed
Savings
Others
Borrowings
Other liabilities
Total Assets/Liabilities
12,586.4
1,713.0
9,975.7
9,799.7
162.4
13.6
134.9
762.8
274.8
988.5
274.9
881.7
2008
Assets
Reserves with MAS
Deposits with banks and other
financial institutions
Banks
Other institutions
Loans and advances
Housing loans
Hire purchase
Lease finance
Others
Securities and equities
Other assets
2007
ASSETS AND LIABILITIES
End of Period
1,824.9
9,111.0
8,861.1
238.2
11.7
97.5
658.5
1,809.4
0.0
8,092.0
1,226.4
2,361.3
0.0
4,504.3
1,453.7
116.7
220.1
1,809.4
2009
11,691.9
C.1FINANCE COMPANIES:
11,523.6
1,926.2
8,891.4
8,614.6
266.6
10.2
79.6
626.4
1,885.0
0.0
8,058.2
1,485.5
2,069.9
0.0
4,502.8
1,259.3
106.0
215.1
1,885.0
2010
12,165.3
1,999.2
9,481.0
9,218.7
252.7
9.7
45.6
639.5
1,176.2
0.0
9,460.2
1,517.1
2,037.7
0.0
5,905.4
1,161.9
115.1
251.9
1,176.2
2011
14,967.5
2,104.8
12,347.6
11,909.9
220.9
216.8
22.6
492.5
1,810.1
0.0
11,311.5
1,402.8
2,089.9
0.0
7,818.8
1,414.7
113.1
318.0
1,810.1
2012
14,985.7
2,109.6
12,396.1
11,887.0
240.3
268.7
17.0
463.0
1,369.2
0.0
11,653.9
1,394.0
1,891.5
0.0
8,368.4
1,522.5
112.0
328.2
1,369.2
2013
17,409.8
496.0
458.9
15,975.7
2,242.4
14,667.1
14,313.5
197.9
155.8
4.3
1,895.9
0.0
13,251.7
1,475.8
1,978.1
0.0
9,797.9
1,735.6
140.9
385.7
1,895.9
2015
2,214.2
13,295.7
12,897.2
217.3
181.2
6.9
1,495.4
0.0
12,385.4
1,448.4
1,779.4
0.0
9,157.6
1,613.0
124.0
357.9
1,495.4
2014
17,123.5
497.6
2,272.2
14,350.1
14,022.4
193.5
134.1
3.6
1,804.1
0.0
13,077.2
1,465.0
2,009.5
0.0
9,602.7
1,745.3
115.7
381.2
1,804.1
S$ Million
March
2016
124
Monetary Authority of Singapore
13,182.7
5,571.5
21,072.0
3,579.3
9,164.4
36,478.5
1,463.7
19,614.0
15,400.7
36,904.2
6,523.2
89,070.2
Liabilities
Capital and reserves
Amounts due to banks
In Singapore
Asian Currency Units
Outside Singapore
Borrowings from non-bank customers
Other liabilities
Total Assets/Liabilities
76,354.4
8,855.7
37,963.7
3,265.6
13,138.0
21,560.0
23,824.0
5,711.0
24,484.6
6,091.7
22,327.0
1,488.4
7,153.9
13,684.7
23,451.1
2009
89,760.3
9,510.2
51,264.3
3,101.8
22,920.9
25,241.5
21,249.1
7,736.8
36,100.0
5,079.2
22,604.2
2,254.7
5,097.9
15,251.7
25,976.8
2010
1 Data are derived from the consolidation of merchant banks’ domestic and Asian dollar operations.
72,602.3
8,443.2
35,698.1
530.7
17,419.1
17,748.2
22,781.3
5,679.7
32,093.5
1,262.2
13,853.3
16,978.0
21,754.6
36,261.8
660.5
20,688.9
14,912.3
28,157.1
2008
Assets
Amounts due from banks
In Singapore
Asian Currency Units
Outside Singapore
Loans and advances to non-bank
customers
Securities and equities
Other assets
2007
CONSOLIDATED ASSETS AND LIABILITIES 1
End of Period
D.1MERCHANT BANKS:
87,851.1
9,983.6
46,928.5
585.8
23,772.5
22,570.2
22,623.4
8,315.7
28,618.0
7,322.2
22,815.1
2,567.3
4,615.0
15,632.8
29,095.7
2011
92,411.0
12,168.2
55,045.1
615.2
22,413.9
32,016.0
17,741.8
7,456.0
38,303.3
5,628.9
21,646.5
3,170.6
5,300.3
13,175.6
26,832.3
2012
84,944.9
12,381.3
51,658.0
408.6
20,349.2
30,900.2
13,600.6
7,305.0
32,642.1
5,542.5
21,226.5
3,433.8
5,212.7
12,580.0
25,533.8
2013
96,256.8
12,560.9
63,112.6
406.4
21,296.9
41,409.4
12,564.7
8,018.6
43,415.1
6,669.1
19,532.4
3,556.6
7,432.7
8,543.2
26,640.2
2014
106,583.2
13,024.6
70,528.6
514.3
23,184.9
46,829.4
13,291.2
9,738.7
50,320.9
7,889.8
25,050.5
2,803.5
9,345.2
12,901.8
23,322.0
2015
92,076.3
12,484.0
55,971.6
624.3
19,108.7
36,022.5
13,184.0
10,436.8
37,222.0
8,099.3
24,745.2
2,617.2
9,953.7
12,174.3
22,009.8
S$ Million
March
2016
Annual Report 2015/16
125
8,795.5
10,210.2
3,138.4
6,039.7
1,340.2
1,948.4
2,751.1
318.2
713.9
3,067.1
769.0
5,528.5
1,488.4
2,988.7
1,051.3
845.6
2009
11,430.4
3,564.6
6,453.8
649.2
2,796.1
3,008.5
360.9
1,051.1
3,024.9
601.1
5,886.6
2,254.6
2,368.8
1,263.2
1,917.8
2010
12,137.2
3,219.2
7,439.2
553.3
3,462.1
3,423.8
457.7
1,021.2
3,043.1
715.6
6,718.5
2,567.0
2,539.6
1,611.9
1,660.0
2011
12,758.7
4,025.9
7,318.0
578.5
3,050.0
3,689.5
395.3
1,019.5
2,663.9
792.8
7,564.1
3,109.2
2,894.1
1,560.8
1,738.0
2012
1 Corporate financial advisory services, underwriting activities and operations in the gold market are not reflected in the data.
8,337.8
2,745.3
3,944.6
1,449.3
1,642.6
852.7
521.9
1,126.1
Liabilities
Capital and reserves
Amounts due to banks
In Singapore
Asian Currency Units
Outside Singapore
Borrowings from non-bank customers
Other liabilities
Total Assets/Liabilities
1,221.1
1,469.6
1,641.2
1,170.7
3,262.9
3,647.8
527.9
1,482.4
1,637.5
341.6
1,543.2
5,323.1
1,261.8
3,062.9
998.4
781.7
4,387.4
659.6
3,112.0
615.8
1,138.5
2008
Assets
Amounts due from banks
In Singapore
Asian Currency Units
Outside Singapore
Loans and advances to non-bank
customers
Securities and equities
Other assets
2007
ASSETS AND LIABILITIES OF DOMESTIC UNIT OPERATIONS 1
End of Period
D.2MERCHANT BANKS:
12,524.7
3,440.8
7,639.8
389.7
4,941.8
2,308.4
332.2
1,111.9
2,388.7
554.9
8,105.6
3,414.5
3,520.2
1,170.9
1,475.6
2013
12,259.7
3,032.0
7,709.2
386.6
6,067.7
1,254.9
297.4
1,221.1
1,977.0
565.4
8,288.7
3,478.1
4,063.2
747.3
1,428.6
2014
12,079.3
3,701.4
6,972.4
500.1
5,346.4
1,125.9
282.0
1,123.5
1,740.4
839.8
8,065.1
2,800.0
4,558.0
707.1
1,434.1
2015
11,712.0
3,853.1
6,482.8
610.8
4,761.9
1,110.1
283.8
1,092.3
1,770.4
949.5
7,701.2
2,616.6
4,369.3
715.4
1,290.9
S$ Million
March
2016
126
Monetary Authority of Singapore
6,105.4
2,621.9
3,483.5
General Business: Gross Premiums 1
Total General Business
Domestic Business
Offshore Business
8,347.5
1,459.2
8,038.2
554.2
7,660.8
1,121.9
9,031.7
402.9
6,501.6
189.4
1,840.7
9,719.1
7,436.2
2,940.8
4,495.4
123,585.0
9,950.4
2,265.9
135,801.3
2009
2010
7,276.7
152.2
3,014.8
11,374.9
8,580.0
3,230.6
5,349.4
136,028.0
10,827.6
2,479.7
149,335.3
1 Figures for March 2016 does not include general captives and marine mutual insurers.
N.A: Not available
Life Business: Premiums
Premiums in Force (End Period)
New Business Premiums
Annual Premium Policies
Single Premium Policies
Life Insurance
Annuity
104,487.9
8,655.2
1,904.6
118,860.0
7,960.1
1,957.3
6,829.3
2,962.5
3,866.8
115,047.7
2008
128,777.4
2007
ASSETS AND PREMIUMS
Total Assets of Insurance Industry
(End Period)
Direct Insurers
Professional Reinsurers
Captive Insurers
E.1 INSURANCE INDUSTRY:
7,253.4
168.2
2,466.4
12,412.7
9,820.4
3,423.6
6,396.8
143,019.7
15,277.2
2,817.9
161,114.8
2011
6,423.6
171.1
2,453.7
13,663.6
10,416.5
3,626.7
6,789.8
156,802.6
15,022.1
3,035.4
174,860.1
2012
7,397.1
36.8
3,114.6
15,073.2
11,102.4
3,738.1
7,364.3
161,597.3
14,886.3
3,209.1
179,692.7
2013
9,038.1
29.3
2,812.3
16,587.7
11,768.1
3,850.5
7,917.6
177,415.2
16,322.2
3,664.5
197,401.9
2014
10,118.6
16.1
3,652.0
18,862.1
12,996.8
3,999.1
8,997.7
187,627.7
18,214.5
3,739.2
209,581.4
2015
2,227.9
3.3
804.2
20,080.1
3,157.6
1,156.4
2,001.2
191,753.7
18,899.2
N.A.
210,652.9
S$ Million
March
2016
Annual Report 2015/16
127
1,302.9
1,017.5
5,455.1
1,076.7
1,537.1
4,228.0
Interest credited to members
15,408.0
6,276.3
157,446.7
166,804.0
6,092.6
1,476.4
784.7
10,720.5
5,836.5
2,622.9
20,124.9
9,404.4
2009
18,765.9
6,978.9
176,142.0
185,888.0
6,709.8
1,645.4
491.5
9,618.5
4,852.7
2,628.9
21,992.7
12,374.2
2010
19,935.0
7,792.7
197,245.5
207,545.5
7,472.7
1,792.1
-1,068.8
10,443.6
6,810.9
2,909.4
24,628.4
14,184.8
2011
19,119.1
8,646.9
219,037.6
230,157.7
8,290.6
1,840.4
-1,219.5
11,726.8
7,993.7
3,112.2
26,048.4
14,321.6
2012
18,636.3
9,571.6
241,428.2
252,968.6
9,144.2
2,381.1
173.7
14,863.2
8,341.4
3,967.0
28,530.0
13,666.8
2013
20,327.6
10,481.3
263,134.6
275,363.9
9,971.9
2,501.7
933.2
17,298.8
9,598.3
4,265.6
29,722.1
12,423.3
2014
20,838.8
11,445.5
286,792.0
299,522.4
10,834.5
2,737.9
450.9
18,725.2
10,380.5
5,155.9
32,049.1
13,323.9
2015
6,101.1
3,097.9
298,443.1
307,682.8
2,944.6
595.7
131.1
4,736.3
2,778.3
1,231.2
9,952.1
5,215.8
2016**
S$ million
1st Qtr
Source: Central Provident Fund Board
1 Contributions include dividends from Special Discounted Shares and Government Grants.
2 Withdrawals include transfers to / from Reserve Account / general moneys of the Fund.
3 Approved housing schemes include Public Housing and Residential Properties schemes.
4 Medical schemes includes Medisave, MediShield, Private Medical Insurance and ElderShield schemes.
5 Deposits placed with MAS during the year excludes: a) interests on bonds & interest on Advance Deposits retained as deposits by MAS; and b) conversions and redemptions of
Government bonds.
6 Includes interest earned from investments held in funds that are administered by the CPF Board. This includes the Central Provident Fund, Lifelong Income Fund, MediShield Fund,
Home Protection Fund and Dependants’ Protection Residual Fund.
7 Holdings exclude advance deposits with MAS.
** Provisional figures (unaudited)
14,167.3
5,651.4
141,325.5
151,307.1
10,967.2
5,847.0
2,799.8
11,562.7
5,867.9
3,081.0
17,874.2
4,432.1
128,626.5
136,586.9
20,232.3
18,117.8
Advance deposits with MAS5
Interest earnings from investments6
Holdings of Government Securities7
Members’ accounts
9,265.1
2008
6,555.1
2007
CENTRAL PROVIDENT FUND BOARD
Excess of contributions over
withdrawals
Contributions (net of refunds) by
members1
Withdrawals (net of refunds) by members2
Approved housing schemes3
Under Section 15 and Section 25 of
CPF Act
Medical schemes4
Others
F.1 NON-BANK FINANCIAL INSTITUTIONS:
128
Monetary Authority of Singapore
56,566.5
8,503.9
15,320.5
6,816.6
3,209.9
17,216.2
4,026.8
24,452.8
15,164.2
-1,271.0
17,121.3
21,180.0
16,793.2
41,201.3
2009
62,296.5
8,087.7
25,880.7
17,793.0
6,744.4
2,143.4
3,785.7
12,673.4
18,402.4
1,740.0
20,194.4
36,589.0
23,742.4
60,383.4
2010
82,763.7
9,003.7
24,800.7
15,797.0
10,420.2
3,834.8
2,632.8
16,887.8
19,280.2
17,595.0
21,593.9
23,815.5
41,075.2
49,609.3
2011
7,071.8
100,252.1
78,664.9
25,499.5
18,427.7
6,315.0
3,143.9
4,308.2
13,767.1
18,545.5
39,040.0
25,597.8
28,293.8
60,985.5
57,291.6
2013
6,072.8
32,780.8
26,708.0
2,315.1
1,438.3
2,266.4
6,019.8
18,284.3
18,380.0
22,110.9
25,515.5
39,864.3
50,826.4
2012
1 Government securities excluding treasury bills.
2 Statutory board securities including MAS Bills.
3 Singapore dollar-denominated bonds listed on the Singapore Exchange (SGX).
4 This includes bonds that are not listed on the SGX but listed on other exchanges.
42,859.4
75,474.2
Total net funds raised (A+B+C)
5,538.6
3,365.0
935.4
7,805.9
6,709.6
8,134.7
6,690.3
9,839.0
22,650.2
12,046.5
13,526.1
500.0
16,222.3
1,415.0
15,494.3
8,804.0
12,699.0
9,708.4
29,986.7
17,940.2
21,898.7
21,022.5
CIssues of debt securities
1) Listed bonds, debentures and
loan stocks 3
2) Unlisted bonds 4
B New capital raised by the private sector
1)Public issues of shares
2)Rights issues
3)Private placements of listed
shares
17,526.1
38,097.7
2008
22,837.3
35,930.9
2007
NET FUNDS RAISED IN THE DOMESTIC CAPITAL MARKET
A Net funds raised by Government
1)Gross issue of Government
securities 1
Less:
Redemption of Government
securities
Conversion from accumulated
advance deposits
2)New advance deposits
3) Net issues of statutory boards’
securities2
G.1DOMESTIC CAPITAL MARKET:
96,566.1
6,953.3
26,025.3
19,072.0
3,522.0
5,425.6
2,351.0
11,298.6
20,246.2
34,896.0
24,697.6
30,309.5
59,242.2
59,107.1
2014
45,565.0
11,667.9
26,675.9
15,008.0
595.8
4,326.7
2,385.1
7,307.6
20,683.0
-16,900.0
26,059.0
24,667.0
11,581.5
58,524.5
2015
11,270.0
1,436.7
4,522.7
3,086.0
48.7
197.0
145.2
390.9
6,088.8
-4,020.0
13,157.6
289,310.5
6,356.4
306,655.7
S$ Million
1st Qtr
2016
Annual Report 2015/16
129
906,991.0
275,256.9
540,688.3
50,438.6
53,670.1
436,579.6
3,652.1
87,393.7
Liabilities
Deposits of non-bank customers
Interbank funds
In Singapore
Inter-ACU
Outside Singapore
NCDs issued
Other liabilities
Total Assets/Liabilities
197,823.1
532,674.6
66,398.3
53,610.7
412,665.5
2,520.4
173,972.9
Assets
Loans to non-bank customers
Interbank funds
In Singapore
Inter-ACU
Outside Singapore
NCDs held
Other assets
2007
2008
912,739.4
262,162.1
523,690.5
62,600.9
54,848.7
406,240.9
1,593.9
125,292.9
214,381.9
498,669.6
64,140.5
54,620.3
379,908.9
1,052.5
198,635.4
ASSETS AND LIABILITIES
End of Period
869,399.6
269,370.2
502,232.6
87,208.3
41,778.1
373,246.2
1,416.2
96,380.6
219,614.4
460,726.4
80,941.5
41,678.4
338,106.5
1,187.7
187,871.2
2009
H.1ASIAN DOLLAR MARKET:
296,376.6
599,568.3
77,629.4
53,603.0
468,335.9
1,686.8
121,901.2
312,814.0
528,823.2
113,361.8
53,383.9
362,077.5
686.1
177,209.6
2011
327,863.5
628,109.0
75,466.9
53,934.8
498,707.3
3,572.8
133,719.3
340,914.0
562,970.6
133,171.6
53,768.7
376,030.3
1,745.6
187,634.3
2012
365,141.3
648,170.8
60,529.3
56,261.1
531,380.3
9,916.7
157,474.7
400,597.0
614,645.6
162,830.7
56,274.7
395,540.2
4,883.3
160,577.7
2013
393,116.8
615,078.7
62,608.9
51,721.6
500,748.2
12,682.5
169,753.8
433,648.4
569,140.4
169,487.9
51,138.2
348,514.3
7,312.6
180,530.4
2014
395,070.2
574,762.8
63,393.3
60,595.7
450,773.8
6,658.6
179,331.0
407,968.8
536,726.3
149,080.8
60,510.7
327,134.9
6,748.1
204,379.4
2015
400,407.0
573,166.0
57,937.9
60,200.1
455,027.9
7,690.9
184,851.4
400,512.0
543,864.7
151,008.4
59,632.2
333,224.1
6,807.9
214,930.8
971,299.4 1,019,532.9 1,093,264.6 1,180,703.6 1,190,631.8 1,155,822.6 1,166,115.3
273,980.3
584,218.2
79,206.4
53,812.3
451,199.5
1,780.4
111,320.5
268,081.7
501,891.4
92,715.5
53,762.1
355,413.7
1,111.3
200,215.0
2010
US$
Million
March
2016
130
Monetary Authority of Singapore
603.3
55.3
71.7
117.7
765.9
28.3
24.9
33.8
Claims 1
Up to 6 months
Over 6 months to 1 year
Over 1 to 3 years
Over 3 years
Liabilities 1
Up to 6 months
Over 6 months to 1 year
Over 1 to 3 years
Over 3 years
739.4
30.7
30.1
34.0
570.3
52.4
80.9
117.4
-169.1
21.7
50.8
83.4
2008
722.4
27.0
24.6
32.8
561.6
42.6
85.0
105.8
-160.8
15.6
60.4
73.0
2009
800.4
25.7
34.7
42.8
621.9
54.4
101.9
122.4
-178.5
28.7
67.2
79.6
2010
820.2
34.7
51.1
51.5
642.1
68.0
109.5
126.8
-178.1
33.3
58.4
75.3
2011
855.4
44.8
58.7
62.1
701.1
65.2
115.6
129.9
-154.3
20.4
56.9
67.8
2012
934.2
50.1
64.6
59.4
764.4
78.2
121.5
135.7
-169.8
28.1
56.9
76.3
2013
938.0
49.2
78.8
63.3
758.7
75.0
138.8
142.8
-179.3
25.8
60.0
79.5
2014
889.0
57.9
84.6
63.5
734.9
74.0
136.4
134.0
-154.1
16.1
51.8
70.5
900.8
62.6
77.9
63.8
741.8
80.2
131.4
140.0
-159.0
17.6
53.5
76.2
US$ Billion
March
2015
2016
1 Data exclude those claims or liabilities with unallocated maturity periods. Therefore the sum of all the maturity categories for claims may not be equal to the sum of all the maturity
categories for liabilities.
-162.6
27.0
46.8
83.9
Net Position 1
Up to 6 months
Over 6 months to 1 year
Over 1 to 3 years
Over 3 years
2007
MATURITY TRANSFORMATION BY ASIAN CURRENCY UNITS
End of Period
H.2ASIAN DOLLAR MARKET:
GLOSSARY
112
Monetary Authority of Singapore
Annual Report 2015/16
113
GLOSSARY
AML/CFT
Anti-Money Laundering and Countering the Financing of Terrorism
ASEAN
Association of Southeast Asian Nations
ASEAN-4
ASEAN (Indonesia, Malaysia, Thailand and the Philippines)
ASEAN+3
ASEAN plus China, Japan and South Korea
BOJ
Bank of Japan
CNY
Chinese Yuan
COE
Certificate of Entitlement
CPI
Consumer Price Index
ECB
European Central Bank
EUR
Euro
FinTech
Financial Technology
FSB
Financial Stability Board
FY
Financial Year
G20
Group of Twenty
G3
Group of Three
GBP
British Pound
GDP
Gross Domestic Product
IMF
International Monetary Fund
INR
Indian Rupee
IT
Information Technology
JPY
Japanese Yen
LIBOR
London Interbank Offered Rate
MOU
Memorandum of Understanding
NEA-3
Northeast Asia (Hong Kong, Taiwan and South Korea)
PBC
People’s Bank of China
q-o-q
Quarter-on-Quarter
RMB
Renminbi
S$/SGD
Singapore Dollar
S$NEER
Nominal Effective Exchange Rate
SAAR
Seasonally Adjusted Annualised Rate
SGX
Singapore Exchange
SIBOR
Singapore Interbank Offered Rate
y-o-y
Year-on-Year
US$/USD
United States Dollar
114
Monetary Authority of Singapore
Annual Report 2015/16
115
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Monetary Authority of Singapore.
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Monetary Authority of Singapore
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MAS Building
Singapore 079117
www.mas.gov.sg
10 Shenton Way
MAS Building
Singapore 079117
www.mas.gov.sg