Monetary Authority of Singapore

Monetary Authority of SingaporeANNUAL REPORT 2012/2013

Monetary Authorityof Singapore

CONTENTS

Chairman’s Message 05Board of Directors 08Management Team 10Board Committees 12Organisational Structure 13

ANCHOR OF ECONOMIC AND FINANCIAL STABILITY

THE ECONOMY – GLOBAL, REGIONAL AND DOMESTIC 16A Year of Tepid Growth 16The G3 Economies Underperformed as Fiscal Withdrawals Intensified 16Growth in Asia ex-Japan Slowed amid Sluggish External Demand 17Immediate Risks in Financial Markets have Receded 17Global Inflation was Subdued as Commodity Prices Eased 17Singapore Experienced a Slowdown amid External Vulnerabilities 17Domestic Factors Kept Inflation Elevated 19

MONETARY POLICY 19 LIQUIDITY MANAGEMENT 21Enhancing Our Liquidity Management Framework 21PBC-MAS Bilateral Swap Arrangement 21

MACROPRUDENTIAL POLICIES 21Property Measures to Maintain a Stable and Sustainable Property Market 21

Financing Restrictions on Motor Vehicle Loans 22

INDUSTRY STRESS TEST 22 Industry Wide Stress Test / Financial Sector Assessment Programme Stress Test 22

SINGAPORE GOVERNMENT SECURITIES (SGS) 22 Developing the SGS market—Introduction of 30-year SGS 22

CAPITAL MARKETS DEVELOPMENT 22Broadening and Deepening Singapore’s Debt Capital Market 22

ROBUST, TRUSTED, AND PURPOSEFUL FINANCIAL CENTREA ROBUST FINANCIAL CENTRE 26Strengthening Capital Requirements for Singapore-incorporated Banks 26Enhancing Regulatory Capital Framework for Capital Market Services Licensees 26A Regulatory Framework for Financial Holding Companies 26Changes to the Qualifying Full Bank Programme 27Enhance Supervision of Insurers 27Box 1: Amendments to the Monetary Authority of Singapore Act 28Monograph on Supervision of Financial Market Infrastructures in Singapore 29Technology Risk Management Notice and Guidelines 29Enhancing Corporate Governance Standards 29Develop and Implement a Regulatory Framework for OTC Derivatives 30Implementation of Enhanced Regulatory Regime for Fund Management Companies 30Offers and Prospectuses Electronic Repository and Access (OPERA) 30Payment System (MEPS+) 31

A TRUSTED FINANCIAL CENTRE 31Rates Review 31Strengthen Anti-Money Laundering / Countering the Financing of Terrorism Requirements for Financial Institutions 31Enforcement of Anti-Money Laundering / Countering the Financing of Terrorism Regulations 32Industry Sound Practices to Further Safeguard Singapore’s Wealth Management Sector 32

A PURPOSEFUL FINANCIAL CENTRE 32 Foreign Exchange (FX) 32Developments in OTC Derivatives Markets 33Asset Management 33Corporate Debt Market 33Infrastructure finance 34Insurance 34Enhancing the RMB infrastructure in Singapore 34Asian Dollar Market 34Promote Local Talent and Leadership Pipeline 35

2 MAS ANNUAL REPORT 2012/2013

VALUED PARTNER ON THE INTERNATIONAL FRONT

COMMITTED TOWARDS INTERNATIONAL EFFORTS ON FINANCIAL STABILITY AND FINANCIAL REGULATORY REFORM 38

International Engagements 38

Promote Consolidated Supervision and Cooperation with Foreign Regulators 38Crisis Management Group Meetings 38Islamic Financial Services Board 38Singapore’s participation in the International Monetary Fund’s Financial Sector Assessment Programme 38Strengthening the International Monetary Fund’s Resources 39Singapore is Committed Toward International Efforts for Financial Regulatory Reform 40Concluding an Inter-Governmental Agreement on the Foreign Account Tax Compliance Act 40

Regional Engagements 40

Strengthening Cooperative Ties with Fellow Regulators 40Executive Meeting of East Asia-Pacific Central Banks 41Maintaining Strong Bilateral Relations 41MAS-AMBD Bilateral Meeting 41Revision of the Chiang Mai Initiative Multilateralisation Agreement 41Box 2: MAS Lecture 42

SERVING THE PUBLIC, ENGAGING STAKEHOLDERSENGAGING THE PUBLIC 46Box 3: The Singapore Third Series Coins 46Managing Dollars and Cents 47MAS Website 48GENESYS 48

PROTECTING CONSUMERS 48Enhancing Credit Cards and Unsecured Credit Rules 48Enhancing Regulatory Regime to Raise Market Conduct Standards and Safeguarding Interests of Retail Investors and Public 48Mystery Shopping Survey 48Box 4: Raising the Bar for the Financial Advisory Industry 49Enhancing Market Conduct 51

EDUCATING CONSUMERS 51MoneySENSE 51 - Media Outreach 51 - Outreach Through Other Platforms 51

Box 5: MoneySENSE - Singapore Polytechnic Institute for Financial Literacy 52MoneySENSE Website 52

ENGAGING THE INDUSTRY 53MAS Streamlines and Enhances Requirements on Disclosure of Interests in Listed Entities 53Enhancing Physical Security of the Financial Industry 53Working with Key Stakeholders 53Insurance Directors’ Programme 53Partnership with Academia 54

ONE MAS: INTEGRATED AND COHESIVEBUILDING HIGH PERFORMANCE TEAMS AND A STRONG MAS FAMILY 58Expertise and Leadership Development 58 - General and Functional Training 58 - Regional and External Programmes 58 - Leadership Programmes 58 - MAS Peer Groups 58 - Attachment and Secondment 59 - Engaging Staff 59 - Recognition of Staff 59Box 6: MAS – An Employer of Choice! 59 - National Day Awards 60

FOSTERING CLOSER TIES 60 - MAS Dinner & Dance 2012 60 - Inter-Central Bank Games 2012 60 - ChristMAS 2012 60

RAISING PRODUCTIVITY 61

UPHOLD HIGH GOVERNANCE AND OPERATIONAL STANDARDS WITHIN MAS 61Procurement Governance and Management 61Security and Fire Safety 61Building Services and Infrastructure 61Risk-Based Audit 61

ENHANCING MAS’ RISK MANAGEMENT CULTURE, OPERATIONAL RESILIENCE AND CRISIS PREPAREDNESS 62

FINANCIAL STATEMENTS 66

KEY ECONOMIC AND FINANCIAL STATISTICS 98

STATISTICAL ANNEX 102

GLOSSARY 122

MAS ANNUAL REPORT 2012/2013 3

Who we are MAS is the central bank of Singapore.

Our mission is to promote sustained non-inflationary economic growth, and a soundand progressive financial centre.

MAS’ FUNCTIONS

· To act as the central bank of Singapore, conduct monetary policy, issue currency, oversee payment systems and serve as banker to and financial agent of the Government;

· To conduct integrated supervision of the financial services sector and financial stability surveillance; · To manage the official foreign reserves of Singapore; and

· To develop Singapore as an international financial centre.

CHAIRMAN’S MESSAGE

The global economy is on a firmer footing compared to a year ago. The repair of bank and household balance sheets has progressed, most notably in the United States. Central bank actions, including unconventional monetary policies, have reduced the risks of financial instability and a sharp economic recession. A gradual, if modest, recovery in the G3 economies can now be expected in the second half of 2013, supported by a steady improvement in the housing and labour markets in the US and the short-term effects of concerted monetary and fiscal stimuli in Japan. China is expanding at a more moderate pace, but remains an important source of global demand growth. The rest of Asia should also be supported by resilient domestic demand and increasing intra-regional trade.

Notwithstanding this improved global picture, we have not returned to the path of normal growth, especially in the advanced economies. There is a critical need to reduce an over-reliance on monetary policy and achieve greater progress in structural reforms, so as to promote lasting, self-sustaining growth. However, recurring volatility is likely in financial markets during the transition to more normal liquidity conditions and interest rates over the medium term.

Against this backdrop, the Singapore economy is expected to continue on a moderate expansion path of 1—3% this year. The gradual improvement in the global economy will provide some upside to Singapore’s external-oriented industries, while domestic demand is likely to stay resilient.

Our labour market remains tight. This is supporting wages, as well as a further pass-through of cost pressures. MAS Core Inflation, which excludes

the costs of accommodation and private road transport, could rise moderately in the latter half of this year. CPI-All Items inflation will ease this year, reflecting the gradual slowdown in the increase in imputed rentals on owner-occupied accommodation, and the recent correction in COE premiums due to the packageof motor vehicle policy measures.

MAS tightened its monetary policy stance in April 2012 by increasing slightly the slope of the S$ nominal effective exchange rate (S$NEER) policy band, with no change to the level at which it was centred. This was a measured step, aimed at averting a build-up of price pressures, anchoring inflation expectations and keeping growth on a sustainable path as the economy restructures. The policy stance was maintained in October 2012 and April 2013.

We recognise that inflation will generally be higher than the historical norm during the medium-term transition towards a higher-productivity economy. However, MAS remains vigilant in preventing cost pressures from escalating and ensuring that consumer price inflation stays moderate. Asset market inflation, especially in housing, remains an important focus for MAS. Low global interest rates put pressure on asset prices and credit growth, with potential knock-on effects on both consumer price inflation and financial stability. MAS has applied targeted macroprudential tools to cool investment demand in the property market, complementing monetary policy in promoting sustainableeconomic and financial conditions. The measures, together with coordinated actions by other Government agencies, have helped to stabilise the market. We continue to monitor their effects.


In keeping with international developments in financial regulation following the recent globalfinancial crisis, MAS has reviewed and refined its rules so as to strengthen our framework for financial stability and ensure robust protection of depositors, insurance policy holders and consumers of financial services. With the passing of the MAS (Amendment) Bill by Parliament earlier this year, MAS has additional resolution powers and a broader range of regulatory options to deal with failed financial institutions, as well as share information with foreign resolution authorities, where necessary. In addition, we havereviewed the framework for the issuance ofsecurities by MAS.

We launched the Financial Advisory Industry Review or FAIR in March 2012, aimed at enhancing the quality of financial advice and efficiency in the distribution of life insurance and investment products. FAIR reviewed areas such as operational standards amongst financial advisory firms, competence and remuneration of representatives, and the transparency and accessibility of products to customers.

We have also strengthened oversight of the fund management industry in several respects. The enhanced fund management regulatory regime introduces more stringent admission criteria for fund managers such as enhanced capital and competency requirements, as well as higher standards of business conduct.

In the banking system, MAS has announced changes to the Qualifying Full Bank (QFB) programme aimed at encouraging foreign banks to deepen their roots in Singapore while strengthening Singapore’s financial stability. For a very small number of QFBs determined to be significantly rooted, MAS may grant an additional 25 places of business, of which up to 10 being branches, as part of an overall package negotiated under free trade agreements (FTAs) with these QFBs’ home countries. MAS will consider a range of quantitative and qualitative attributes that demonstrate a QFB’s ability and willingness to support Singapore’s financial

stability and development, in determining if the QFB is significantly rooted. In addition, MAS willrequire existing QFBs that are important to the domestic market, as well as new QFBs offered under future FTAs, to locally incorporate theirretail operations at minimum, so as to enhancedepositor protection.

In line with measures by regulatory authoritiesin major international centres, MAS initiated a review of banks’ financial benchmarks setting processes in July 2012. Upon conclusion of the review, MAS took supervisory actions against several banks for governance and risk management deficiencies. These actions include imposing additional statutory reserves, and requiring banks to plug identified deficiencies and conduct independent reviews to ensure the robustness of enhanced risk management processes and internal controls. Changes to the benchmarks setting processes will also be rolled out progressively over 2013 to strengthen the governance and the design of financial benchmarks and their setting processes.

Singapore has been active in global efforts to combat money laundering, terrorism financing and proliferation financing. We operate a rigorous AML/CFT regime, which has been well rated and assessed by the Financial Action Task Force (FATF) to be aligned with international standards. Consistent with the revised FATF recommendations, Singapore criminalised the laundering of proceeds from serious tax crimes from 1 July 2013. We will continue to strengthen Singapore’s framework for international cooperation, and ensure that our financial system is not used as a harbour or conduit for illicit assets.

Overall, financial sector growth remains resilient, with activity seen across most segments of the industry. One key development was the launch in May 2013 of Renminbi (RMB) clearing services in Singapore by the Industrial and Commercial Bank of China (ICBC) Singapore branch. This followed the signing of an MOU between MAS and the People’s Bank of China on RMB Business Cooperation, which facilitates the use of RMB


in Singapore for cross-border trade and other economic transactions and enhances access toRMB in the region. On 28 May 2013, MAS also opened its Beijing Representative Office. Together, the collaboration between MAS and the Chinese central bank and financial authorities will deepen financial and economic cooperation between China and Singapore, and strengthen regional financial markets.

As Singapore continues to develop as a key financial centre in the Asian time zone, MAS will support financial institutions in efforts to develop a strong core of Singaporean financial sector professionals and leaders in finance. These initiatives aim to nurture younger Singaporean entrants with opportunities to be mentored by senior leaders and to broaden their horizons

across various functional roles; to give Singaporean finance professionals the opportunity to deepen specialist skills; and to help more mid-career Singaporeans take on regional and international postings. A solid core of Singaporean specialists and leaders will be critical to fostering and sustaining a strong financial sector workforceover the long term.

Mr Lucien Wong, Chairman and Senior Partner, Allen & Gledhill, stepped down from the MAS Board of Directors on 28 February 2013. He had served on the Board since 1 January 2006. On behalf of the Board and Management of MAS, I thank Mr Wong for his active and invaluable contributions. I also welcome Mr Quek See Tiat as a new member of MAS’ Board of Directors.

Tharman ShanmugaratnamChairman


BOARD OF DIRECTORS

Tharman ShanmugaratnamChairmanDeputy Prime MinisterMinister for Finance

Lim Hng KiangDeputy ChairmanMinister for Trade & Industry

Lawrence Wong Shyun TsaiActing Minister for Culture, Community and YouthSenior Minister of State for Ministry of Communications and Information

Heng Swee KeatMinister for Education


Quek See TiatChairman of Audit CommitteeChairman,Building and Construction Authority

Lim Chee OnnChairman of Risk CommitteeSenior International Adviser,Singbridge Pte Ltd

Peter Ong Boon KweePermanent Secretary,Ministry of Finance

Tan Chorh ChuanPresident,National University of Singapore

Ravi MenonManaging Director, MAS

Goh Chok TongEmeritus Senior Minister

Senior Advisorto MAS


MANAGEMENT TEAM


A. Ravi MenonManaging Director

B. Ong Chong TeeDeputy Managing DirectorMonetary Policy and Investment /Financial Development

C. Teo Swee LianDeputy Managing DirectorFinancial Supervision

D. Foo-Yap Siew HongAssistant Managing DirectorCurrency, Corporate Services &Human Resource /Special Projects Advisor to MD

E. Andrew KhooAssistant Managing DirectorMarkets & Investment / External /MAS Academy

F. Lee Boon NgiapAssistant Managing DirectorBanking & Insurance

G. Lee Chuan TeckAssistant Managing DirectorCapital Markets

H. Jacqueline LohAssistant Managing DirectorPolicy, Risk & Surveillance

I. Low Kwok MunAssistant Managing DirectorFinance, Information Technology and Risk

J. Ng Nam SinAssistant Managing DirectorDevelopment

K. Edward RobinsonAssistant Managing DirectorEconomic Policy

A

D

F B H G

CJ

I

EK


BOARD COMMITTEES*

The MAS Act provides that the Board of Directors shall be responsible forthe 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 sustainable 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 the processes for reporting of risks. The Risk Committee comprises Lim Chee Onn (Chairman), Tan Chorh Chuan and Ravi Menon.

* As at 1 June 2013


ORGANISATIONAL STRUCTURE*

Ravi MenonManaging Director

Ong Chong TeeDeputy Managing DirectorMonetary Policy and Investment /Financial Development

Teo Swee LianDeputy Managing DirectorFinancial Supervision

MONETARY POLICYAND INVESTMENT /FINANCIAL DEVELOPMENTOng Chong TeeDeputy Managing Director

ECONOMIC POLICYEdward RobinsonAssistant Managing Director

ECONOMIC ANALYSISNg Bok Eng Executive Director

ECONOMIC SURVEILLANCE &FORECASTINGCeline Sia Executive Director

MARKETS & INVESTMENTAndrew KhooAssistant Managing Director

MONETARY & DOMESTICMARKETS MANAGEMENTAndrew KhooAssistant Managing Director

RESERVE MANAGEMENTYap Chuin Houi Executive Director

DEVELOPMENTNg Nam SinAssistant Managing Director

FINANCIAL CENTRE DEVELOPMENTLeong Sing Chiong Executive Director

FINANCIAL MARKETS STRATEGYNg Yao Loong Executive Director

FINANCIAL SUPERVISIONTeo Swee LianDeputy Managing Director

BANKING & INSURANCELee Boon NgiapAssistant Managing Director

BANKING DEPARTMENT IChua Kim Leng Executive Director

BANKING DEPARTMENT IIWong Nai Seng Executive Director

BANKING DEPARTMENT IIITai Boon Leong Executive Director

INSURANCELuz Foo Executive Director

CAPITAL MARKETSLee Chuan TeckAssistant Managing Director

CAPITAL MARKETSLoo Siew Yee Executive Director

CAPITAL MARKETSINTERMEDIARIESMerlyn Ee Executive Director

INVESTMENT INTERMEDIARIESChristopher Tan Director

POLICY, RISK & SURVEILLANCEJacqueline LohAssistant Managing Director

MACROECONOMIC SURVEILLANCELam San Ling Executive Director

PRUDENTIAL POLICYLim Tuang Lee Executive Director

SPECIALIST RISKWan Aik Chye Executive Director

CORPORATE DEVELOPMENT

CURRENCY, CORPORATESERVICES &HUMAN RESOURCESFoo-Yap Siew HongAssistant Managing Director

CORPORATE SERVICESBernard Yeo Executive Director

CURRENCYChung Wei Ken Executive Director

HUMAN RESOURCEHo Hern Shin Executive Director

HUMAN RESOURCE PROJECTSWinnifred Chen Executive Director

FINANCE, INFORMATIONTECHNOLOGY &RISK MANAGEMENTLow Kwok MunAssistant Managing Director

FINANCETeo Kok Ming Executive Director

INFORMATION TECHNOLOGYLawrence Ang Executive Director

RISK MANAGEMENTDaniel Wang Director

MANAGING DIRECTOR’SOFFICE

SPECIAL PROJECTS ADVISORTO MDFoo-Yap Siew HongAssistant Managing Director

MAS ACADEMYAndrew KhooAssistant Managing Director

GENERAL COUNSEL’S OFFICENg Heng Fatt General Counsel

EXTERNALBernard Wee Director

INTERNAL AUDITTimothy Ng Executive Director

STRATEGIC PLANNINGAND COMMUNICATIONSWong Nai Seng Executive Director

SPECIAL DUTIESChia Der Jiun Executive Director

* As at 1 June 2013


ANCHOR OF ECONOMIC

AND FINANCIAL STABILITY

ANCHOR OF ECONOMIC AND FINANCIAL STABILITY

THE ECONOMY — GLOBAL, REGIONAL AND DOMESTIC

A Year of Tepid Growth

The year 2012 began on a cautiously optimistic note after a series of shocks reduced averageGDP growth in Singapore’s key trading partnersto 4.4% in 2011.1 However, a confluence of new uncertainties, including the escalation of the debt crisis in Greece, the threat of the “fiscal cliff” in the US, and fears of a sharp slowdown in China, caused the world economy to lose momentumagain in mid-2012. As a result, external growth fell further to 3.9% for the year—the slowest pace of expansion since the Global Financial Crisis.

Nonetheless, robust policy responses by central banks in the advanced economies helped to stabilise financial conditions and triggered a rally in stock markets that carried over into early 2013. Most notably, the European Central Bank’s announcement of Outright Monetary Transactions (OMTs), promising unlimitedsupport for vulnerable member states under certain pre-conditions, reduced the tail risk of a Euro zone exit. The US Federal Reserve followedup with a third round of quantitative easing measures, committing to purchase mortgage-backed securities until the labour market showsa substantial improvement. In November 2012, the newly-elected Japanese government announced ambitious plans to reflate the economythrough generous fiscal stimuli and bold monetaryeasing, giving a further boost to confidence. The G3 Economies Underperformed as FiscalWithdrawals Intensified

The US economy expanded by 2.2% in 2012, with significant quarter-to-quarter volatility due to a combination of government spending cutbacks,natural disasters and rising uncertainty over fiscalpolicy. Private domestic demand turned out to be

relatively resilient, supported by stronger residentialinvestment and more moderate growth in consumption spending, compared to the previous year. However, falling federal and stateexpenditures subtracted more than one percentage point from overall GDP growth in Q4 2012. At the turn of 2013, a last-minute agreement by Congress helped to avert the fiscal cliff, quelling worries of a recession in H1 2013, although across-the-board spending cuts which were triggered by the budget sequester dampened confidence more recently.Despite this setback, US growth rebounded to 1.8% q-o-q SAAR in Q1 2013 from 0.4% in Q4 2012, as an ongoing labour market recovery and continued lift in house prices supported consumer spending. The Euro zone lapsed into a mild recession in 2012, with an output contraction of 0.5%. Economic activity fell sharply in the peripheral countries, as fiscal rectitude compounded a decline in private domestic demand. Growth in Germany also slowed as net exports, which bolstered economic performance in the first half of the year, became a drag on the economy in the second half. In H1 2012, fearsof a possible Greek exit and the revelation offinancial fragilities in Spain led to an increasein risk aversion. The subsequent debt settlementin Greece and banking sector bailout in Spain restored some calm to the markets, albeit at the expense of increased fiscal austerity going forward. Amid lingering concerns about thepolitical situation in Italy and the repercussionsof the Cyprus bailout, Euro zone GDP continuedto contract, by 1.1% q-o-q SAAR in Q1 2013.

The Japanese economy rebounded from the Great Eastern Earthquake with an expansion of 1.9% in 2012. After the spurt of public reconstruction

1 External GDP growth is weighted by country shares in Singapore’s NODX.


spending seen in Q1 2012, however, waning government stimulus measures pulled growthdown for the rest of the year. Weak overseasdemand, the strong yen and rising diplomatictensions with China also contributed to a slumpin exports and industrial production, culminatingin a technical recession in Q3. However, sincethe commitment by the new administration to revive growth late last year, the yen has depreciated against the major currencies. The economy started 2013 on a solid footing, with growth accelerating to 4.1% q-o-q SAAR in Q12013, driven by robust consumer spending andhigher net exports.

Growth in Asia ex-Japan Slowed amid SluggishExternal Demand

Growth in the Asia ex-Japan economies slackened for the second consecutive year, falling to a post-crisis low of 5.1% in 2012 from 5.9% in 2011.The region’s export performance last year wasbuffeted by sluggish demand from the advancedeconomies while an investment slowdown inChina weighed on intra-regional trade. The Chineseeconomy expanded by 7.8% in 2012, the slowest pace in 13 years, as tight monetary policy andproperty restrictions curtailed real estate sales andconstruction, which in turn had a cascadingeffect on primary commodity exporters such asIndonesia and Malaysia.

Nevertheless, resilient domestic demand took upthe slack in exports and supported economicactivity in much of the region. In fact, growth in the ASEAN-4 economies accelerated to 6.1% in2012 from 4.5% in 2011, as an investment upswing, a step-up in public infrastructure projects and increased government transfers boosted spending. In the more externally-oriented NIEs, the knock-on effects of muted trade activity on corporate investment pulled GDP growth down to a three-year low in 2012. Towards the end of the year, however, these economies started to recoveron the back of a turnaround in exports to China and a modest upturn in the global electronics cycle.

Immediate Risks in Financial Markets have Receded

Strong policy actions by central banks of key advanced economies have boosted financial

markets globally. From March 2012 to March 2013, the S&P 500 rose by 11.4%, the DJ Eurostoxx rose by 7.6%, the Nikkei 225 rose by 23.0%, while the MSCI Asia ex-Japan Index rose by a more moderate 4.5%. While these policyactions have buoyed markets and eased financingconditions considerably, they could also distort credit allocation and weaken incentives torepair balance sheets. It is thus importantthat advanced countries maintain focus oncorrecting longer-term financial and economicimbalances.

Bank funding conditions in advanced economies have generally improved with policy actionsto support funding markets, as well as continued progress in reforming financial systems. In Europe, there are nascent signs that credit conditions and peripheral bank funding have stabilised. However, further flare-ups in stressedsovereigns could again undermine confidence and impact financial market conditions.

The banking systems of Asian countries have generally maintained sound capital buffers and funding profiles. With potentially slower economic growth ahead, increased leverage in some segments of corporate or household sectors and the possibility of some foreign investors pulling out of Asian asset markets, there is a need to be cautious and vigilant.

Global Inflation was Subdued as Commodity Prices Eased

Global inflation was subdued for much of 2012, as food and energy prices declined orregistered smaller increases due to easing supplydisruptions. This exerted downward pressure on consumer prices in the G3, reinforced byslowing growth and excess capacity. As aresult, headline inflation in the G3 fell from 2.4% y-o-y in Q1 2012 to 1.7% in Q4. In Asia ex-Japan, inflation also declined markedly to 4% in 2012 from 5.6% in 2011, although core inflation was more persistent due to tight labour markets and high resource utilisation.

In the first three months of 2013, headline inflationpicked up again in Asia ex-Japan, as severaleconomies were operating close to, or even above, their potential output levels and came up


Chart 1: Singapore’s GDP Growth

2011 Q2 Q3 Q4 2012 Q2 Q3 Q4 2013 Q1

20

15

10

5

0

-5

Per

Cen

t

YOYQOQ SAAR

against supply-side constraints. In response, some Asian countries increased infrastructure spendingto relieve supply bottlenecks and implementedmacroprudential measures to guard against excessive credit growth and asset bubbles.

Singapore Experienced a Slowdown amid External Vulnerabilities

Being a small and very open economy, Singapore was not immune to the global headwinds. The domestic economy grew by a modest 1.3% for the whole of 2012, down from 5.2% in the previous year. Having started the year strongly, activity weakened in Q2 and Q3 2012, alongside a pullback in global demand as tensions in the Euro zone mounted. However, prompt remedial action from the G3 central banks provided some reprieve to global financial markets, and Asia ex-Japan economies staged a broad-based reboundthereafter. Accordingly, the Singapore economy returned to growth in Q4 last year. (Chart 1)

The lacklustre GDP outturn last year was largelyon account of a downshift in manufacturing activity. In particular, Singapore’s electronics cluster recorded a double-digit contraction for the second consecutive year, amid sluggish external demand and a global supply over-hang. The weakness in manufacturing, in turn, pulled down trade-related services. Growth in financial services likewise decelerated, as tepid investor interest led to a pullback in sentiment-sensitive activities. Nonetheless, domestic demand provided some support to the economy. The

construction sector, for instance, turned in another year of robust growth, buoyed by a steady rollout of commercial and residential projects. Other domestic-facing sectors, such as real estate and professional services, also expanded at a firm pace.

Going into 2013, the Singapore economy hasmaintained a modest upward momentum in Q1.The externally-reliant industries registered a setback due to a weaker performance in thepharmaceuticals and transport engineering segments, although domestic demand provided some support. Looking ahead, GDP growth should pick up over the course of this year amid an improving external environment. The domestic-oriented sectors are expected to remain the mainstay of growth,underpinned by ongoing supply-side expansions intransportation infrastructure and other major building works. Nonetheless, the recovery momentum is expected to be gradual and uneven, capped by the challenges in the advanced economies as well as resource constraintsassociated with domestic restructuring. The Singapore economy is therefore projected toexpand by 1–3% this year. Over the medium term,growth is likely to reset to a more modest range compared to the 2000s. Resource constraints will be increasingly brought to bear as the population ages and foreign worker inflows ease. The current restructuring drive to orient the economy towards higher value-added activities and productivity-led growth is therefore critical.


Chart 2: Contribution to CPI-All Items Inflation

2000-09

6

5

% P

oint

Con

trib

utio

n

4

3

2

1

0

-1

2010 2011 2012

OthersOil RelatedServicesPte Rd Trpt ex-Petrol FoodAccommodation

CPI-All Items inflation

MONETARY POLICY The Singapore economy saw a modest expansion in 2012, amid a softening in global economic activity. While the external-oriented sectors bore the brunt of the global downturn, domestic-

driven sectors, such as construction and relatedfinancing and real estate activities, remainedbroadly resilient. This kept the resource marketstight. Notably, the economy remained at full employment even as the level of output continued to coverge to its underlying potential.

Domestic Factors Kept Inflation Elevated

Singapore’s labour market remained tight in 2012, with the overall unemployment rate falling to 2%, the lowest since 1997. This was due to strong labour demand to meet capacity expansion in infrastructure and essential services, as well as a more restrictive foreign labour policy. While resident wage growth was dampened by the generally sluggish economic environment it slowed to 2.3% last year, from the 5.8% averagein the preceding two years the decline in labour productivity led to a further build-up in business cost pressures.

MAS Core Inflation, which excludes the costs of accommodation and private road transport, averaged 2.5% in 2012, up from 2.2% in 2011,as businesses continued to pass on some

of the cost increases to consumers. CPI-All Items inflation, while moderating from 5.2% in 2011, remained elevated at 4.6% in 2012, due tohigher residential property rentals and car prices.These reflect persistent tightness in the housingrental market and smaller COE supply, respectively. (Chart 2)

As the economy transits towards more sustainable, productivity-driven growth, the labour market will face continued constraints which will lead to further increases in domestic business costs. Onthe other hand, imported inflation will likelybe subdued, given favourable supply conditionsin the global commodity markets. Taking thesefactors into account, both MAS Core Inflationand CPI-All Items inflation will be lower in 2013compared to last year.


Chart 3: Key Macroeconomic Variables and the Monetary Policy Stance

Modest & Gradual Appreciation Modest & Gradual AppreciationNeutral Policy

IncreaseSlopeSlightly

IncreaseSlope Slightly

& Widen Band

IncreaseSlope Slightly

& Restore Narrower Band

Re-centre

Re-centre

ReduceSlope

Maintain

Maintain

130

125

120

115

110

105

100

95

S$NEER

Output Gap

CPI – All Items Inflation

Real GDP Growth

8

6

4

2

0

-2

-4

-6

8

6

4

2

0

10

-2

20

15

10

5

0

-5

-10

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1

2013 Q1:4.0%

2013 Q1:0.2%

Ind

ex (Q

1 20

04=

100)

% o

f Pot

entia

l GD

P%

YO

Y%

YO

Y


Against this backdrop, MAS tightened the monetary policy stance in April 2012 by increasing slightly the slope of the S$ nominal effective exchange rate (S$NEER) policy band, with no change to the level at which it was centred. This was a measured move to contain inflationary pressures, anchor inflation expectations and keep growth on a sustainable path while the economy restructures. The policy band was also restored to a narrower setting. Despite continued uncertainty about the outlook for the world economy, particularly with regardto Europe, the Singapore economy was projectedto grow at a moderate pace in 2013. With persistent tightness in the labour market, this could exert some upward pressures on MAS CoreInflation. MAS thus maintained the April 2012 policy stance in the subsequent reviews in October 2012 and April 2013.

Monetary policy in Singapore is formulated with the objective of promoting price stability as a basis for sustainable economic growth. Chart 3 traces the evolution of monetary policy, as indicatedby movements in the S$NEER, against thebackdrop of developments in growth and inflation. Since April 2010, MAS has adopted a modest and gradual appreciation path for the S$NEER policy band, which has had a restraining effect on the economy and prices. At the same time, the monetary policy stance has been calibrated to facilitate the ongoing economic restructuring aimed at raising productivity over the longer term. While MAS recognises that inflation could betemporarily higher, there is a need to guard againstan entrenchment of inflationary pressures or build-up of inflation expectations during this period of transition.

LIQUIDITY MANAGEMENT

Enhancing Our Liquidity Management Framework

In 2012, MAS continued to extend our networkof cross-border collateral arrangements (CBCAs)in Asia. The CBCA with the Bank of Thailand(BOT) allows financial institutions in Singapore topledge Thai Baht (THB) cash and THB-denominatedsovereign and central bank securities to obtainSingapore dollar (SGD) liquidity at the MAS Standing Facility, and financial institutions inThailand to obtain THB liquidity from BOT’s liquidity

facility using SGD cash, sovereign bonds and central bank securities. This brings the totalnumber of CBCAs that MAS has to seven.

MAS also continued to expand the MAS Billsprogramme by issuing 12-week MAS Billsin July 2012 and raising outstanding issuanceto S$37.2 billion in Financial Year 2011/12, up from S$18.0 billion in Financial Year 2010/11.

PBC-MAS Bilateral Swap Arrangement

In March 2013, MAS renewed and enhanced the bilateral currency swap arrangement with the People’s Bank of China (PBC). The new arrangement doubles the size of the previous swap facility and enables both central banksto provide foreign currency liquidity to stabilisefinancial markets. Under the arrangement, upto RMB300 billion in Chinese Yuan (CNY) liquidity will be available to eligible financial institutions operating in Singapore, and up toS$60 billion in Singapore dollar liquidity willbe available to eligible financial institutions operating in China. The arrangement will expire in 2016 and may be extended further by mutual agreement. The existing MAS CNY facility wassubsequently enhanced to allow MAS to provideshort-term liquidity for market stability, in addition to trade purposes.

MACROPRUDENTIAL POLICIES

Property Measures to Maintain a Stable and Sustainable Property Market

MAS introduced two rounds of property market measures in 2012 and early 2013, to foster longterm stability in the property market. In October 2012, MAS restricted the tenure of loansgranted by financial institutions for the purchaseof residential properties. We imposed a cap of 35 years on the tenure of housing loans granted by financial institutions. In addition, loans exceeding30 years would face significantly tighter loan-to-value (LTV) limits. For housing loans granted byfinancial institutions to non-individuals, the LTV limit was lowered from 50% to 40%.

In January 2013, MAS lowered the LTV limits for property purchases by individuals with one


outstanding housing loan from 60% to 50%, and by individuals with two or more outstanding housing loans from 60% to 40%. Loans with longer tenure would face even tighter LTV limits. We also increased the minimum cash down payment requirement from 10% to 25% for property purchases by individuals with at least one outstanding housing loan. In addition, the LTV limit for housing loans to non-individuals was further lowered to 20%. To moderate the demand for HDB flats and instil greater financialprudence among buyers, MAS introduced a mortgage servicing ratio requirement of 30% onloans granted by financial institutions for thepurchase of HDB flats.

Financing Restrictions on Motor Vehicle Loans

In February 2013, MAS introduced financingrestrictions on motor vehicle loans granted byfinancial institutions. The tenure of motor vehicleloans was capped at five years while the loan-to-value was limited to a maximum of 50% or60% depending on the open market value of the motor vehicle. The restrictions were put in place to encourage financial prudence among consumers and moderate demand for motor vehicles. In consideration of feedback from industry participants and members of the public, an exemption was made for the physically disabledand their caregivers. A 60-day exemption was alsogranted to motor vehicles that were part of the used car industry’s inventory and that were acquired prior to the introduction of financing restrictions.

INDUSTRY STRESS TEST

Industry Wide Stress Test / Financial Sector Assessment Programme Stress Test

In 2012, MAS conducted an industry-wide stress test of financial institutions in Singapore. Banks were stress tested on solvency and liquidity risks, well ahead of Basel III requirements.On the whole, the key financial institutions were found to be resilient to the projected scenario, which included stressed conditions inthe Eurozone, reflecting the generally small exposures that Singapore’s banking system had to the Euro zone. MAS is also working with the

financial sector on stress tests in preparation forthe International Monetary Fund’s Financial SectorAssessment Programme (FSAP) in 2013.

SINGAPORE GOVERNMENT SECURITIES (SGS)

Developing the SGS market — Introduction of 30-year SGS

In April 2012, MAS marked a major milestone in the development of the SGD bond market by introducing the 30Y SGS. The instrument was well-received by the market and demand at primary auctions was high.The 30Y SGS enabledMAS to extend the SGS yield curve andprovided an additional benchmark for the pricingof corporate bonds. It was also vital insatisfying the growing demand for longer-datedsecurities by banks, insurers and other financial institutions. CAPITAL MARKET DEVELOPMENT

Broadening and Deepening Singapore’s Debt Capital Market

MAS continues to strengthen the SGD debt market, implementing initiatives aimed at further improving the efficiency and liquidity of the SGD corporate debt market. First, the provision of swap liquidityto primary dealer banks handling SGD debtissuance for corporations is now fully operational.MAS will now be able to support swaptransactions at market determined rates tominimise uncertainties in the bond pricingprocess. Second, MAS has been developing a facility to allow market makers to borrow SGD corporatebonds. The facility will improve liquidity inthe secondary market and is expected to be operationally ready this year.

Third, the price discovery initiative to improve transparency for SGD corporate bonds was successfully completed in mid 2012. Complementing this is an industry-led initiativeto create a SGD corporate bond index which market participants could use as a benchmarkfor investment management. The bond indexwas launched in June 2013.


ROBUST, TRUSTED

AND PURPOSEFUL

FINANCIALCENTRE

Strengthening Capital Requirements for Singapore-incorporated Banks

MAS is committed to ensuring full, timely and consistent implementation of Basel III, issued by the Basel Committee on Banking Supervision (BCBS) to strengthen the resilience of the bankingsystem. In September 2012, MAS issued a revisedMAS Notice 637 to implement the Basel IIIcapital framework in Singapore with effect from 1 January 2013. The revised Notice requires Singapore-incorporated banks to meet capital adequacy standards that are higher than the Basel capital standards, and also implements the Basel III capital reforms on raising the quality of capital, enhancing risk coverage, requiring capital buffers and monitoring of the leverage ratio. For Common Equity Tier 1 capital, Singapore-incorporated banks are required to maintain a ratio of at least 9%, inclusive of a capital conservation buffer requirement of 2.5%, compared to the Basel III requirement of 7%. This will further strengthen the ability of Singapore-incorporated banks to operate under stress conditions, and help safeguard financial stability. MAS amended MAS Notice 637 further in Q4 2012 to implement BCBS’ requirements issued in 2012 as part of Basel III on capitalrequirements for bank exposures to centralcounterparties and disclosure requirements on composition of capital. The capital requirementsfor bank exposures to central counterparties enhance incentives for banks to use central counterparties while ensuring that such exposures remain adequately capitalised. The disclosure requirements enhance the transparency and comparability of disclosures on the composition of regulatory capital.

Our Basel III implementation efforts were validated by the BCBS under itsRegulatory Consistency Assessment Programme from July 2012 to March 2013. In its assessment report of Singapore published in March 2013, the BCBS concluded that Singapore has put in place national regulationsin accordance with the capital standards underthe Basel framework, and assessed Singaporeas being compliant. Enhancing Regulatory Capital Framework for Capital Market Services Licensees

In April 2013, MAS issued revisions to the capital requirements for capital markets serviceslicensees (CMSLs) to enhance the risk-sensitivityof the capital framework and strengthen the quality of capital of CMSLs. The revision followed a public consultation, and quantitative impact studies to assess the impact of the proposals on the industry. The enhanced capital requirements will further strengthen the ability of CMSLs to withstand the risks to which their business is subject.

A Regulatory Framework for Financial Holding Companies

In April 2013, the Financial Holding Companies Act (FHC Act) was enacted to extend MAS’ regulatory powers to non-operating holdingcompanies that hold bank or insurance subsidiaries in Singapore. This new legislativeinitiative supports the established concept of group supervision. Under the FHC Act, MAS can designate an FHC for regulation where the FHC is an ultimate holding company of a financial group headquartered in Singapore or where doing so will strengthen its supervision of the Singapore bank or insurance subsidiary. The

A ROBUST FINANCIAL CENTRE

ROBUST, TRUSTED AND PURPOSEFUL FINANCIAL CENTRE


regulations are aimed at mitigating intra-group contagion risk, preventing the multiple use of capital within the group, and limiting group concentration risk exposures. The FHC regulatoryframework is in line with international regulatory developments, where there is growing recognition among international regulators of the role of FHCsand the need to include FHCs in their scope of group-wide supervision.

Changes to the Qualifying Full Bank Programme As part of MAS’ efforts to encourage foreign banks to deepen their roots in Singaporewhile strengthening Singapore’s financial stability,MAS announced changes to the Qualifying FullBank (QFB) programme.

In June 2012, MAS announced its intention to grant a very small number of significantly rooted QFBs, an additional 25 places of business,of which up to 10 may be branches, as partof an overall package negotiated under free trade agreements (FTAs) with these QFBs’ home countries. In determining whether a QFB is significantly rooted, MAS will consider a range of quantitative and qualitative attributes that demonstrates the QFB’s ability and willingness to support Singapore’s financial stability anddevelopment. Some of these attributes include whether the bank is locally incorporated with majority Singaporean/PRBoard representation,and what types of businesses are conductedby the locally incorporated entity; and ifSingapore is one of the bank’s major markets, constituting a substantial part of group profits and assets.

In addition, MAS will require existing QFBs that are important to the domestic market, as well as new QFBs offered under future FTAs, to locally incorporate, at minimum, their retailoperations so as to enhance depositor protection. Enhance Supervision of Insurers

MAS enhanced its insurance regulatory andsupervisory framework on a number of frontsafter several public consultations over the lastfew years. This included amendments to theInsurance Act (IA) to take into account global

supervisory and market developments since its last major amendment in 2004. The amendments enhanced MAS’ powers to achieve its supervisory objectives, improved the clarity of existing policypositions, and aligned the IA with other MAS-administered Acts.

In April 2013, MAS extended the Corporate Governance Regulations beyond the significant life insurers to all locally incorporated direct insurers and reinsurers. In addition, the CorporateGovernance Guidelines, which were previouslyapplicable to only locally incorporated direct insurers, were extended to the locally incorporatedreinsurers and captives.

To strengthen the standard of risk management amongst insurers, MAS issued a new Notice on Enterprise Risk Management (ERM) in April 2013. Under the ERM Notice, insurers arerequired to identify and manage the interdependencies between key risks, and to more effectively link these to their strategic management and capital planning within a framework guided by an explicit risk tolerance statement.

A new Notice on Public Disclosure requirements was also issued in April 2013. This Notice requires insurers to publicly disclose more comprehensive information on a timely basis.This will help members of the public, including policyholders, to obtain a clear view of an insurer’s business activities, performanceand financial position.

MAS commenced a review of its Risk Based Capital (RBC) framework for insurance companies to keep pace with the evolving marketpracticesand global regulatory developments. The reviewaims to improve the comprehensiveness of the types of risks covered and the risk sensitivity of the framework, as well as to redefine the solvency control levels. MAS is working inconsultation with the industry to finalise thekey components of the proposals by end 2013.


Amendments to the Monetary Authority of Singapore Act

MAS embarked on a review of its regulatory framework for financial institutions, with a view to strengthening the framework for financial stability and ensuring robust protection of depositors, insurance policy holders and consumers of financial services. As part of the review, MAS took into account the Financial Stability Board’s principles on “Key Attributes ofEffective Resolution Regimes for Financial Institutions” where relevant to Singapore.The Monetary Authority of Singapore Act (MAS Act) was then amended to enhanceand expand MAS’ suite of powers for resolving distressed financial institutions.The amendments also strengthen the current framework for the issuance of MAS book-entry securities and regulation of primary dealers. Enhanced regulatory framework for resolution of financial institutions

The Monetary Authority of Singapore (Amendment) Bill 2013 (the Bill), seeks to vest MAS with a broader range of regulatory options in dealing with failed financial institutions.The Bill extends resolution powers of MAS which previously exists only for banks and insurance companies, to over a wider range of financial institutions, including finance companies, merchant banks, operators and settlement institutions of designated payment systems, approved exchanges, and designated financial holding companies. These additionalresolution powers mean that: (a) MAS will be able to issue directions to a non-regulated entity that is incorporated or established in Singapore, where the entity belongs to a group of companies of which a financial institution regulated by MAS is part of and is significant to the business of such a group;

(b) MAS may apply to the Court to claw back the salary, remuneration or benefits given to a director or executive officer under certain circumstances, for example, when the director or executive officer has failed to discharge his or her duties; and

(c) MAS may share information with a foreign resolution authority if the information is necessary in the resolution of a financial institution.

Framework for issuing MAS book-entry securities and regulating primary dealers

The framework for the issuance of book-entry securities by MAS and the appointment of primary dealers enables MAS to issue securities in its name, and to purchase, repurchase,sell and redeem these securities as appropriate. These amendments serve to strengthenthe legal and regulatory framework for MAS’ monetary policy operations and the marketfor MAS book-entry securities.

The Bill was passed in Parliament in March 2013, and became effective in April 2013.

Box 1


2 FMIs refer to systemically important payment systems, central counterparties, securities settlement systems, central depositories and trade repositories.

Monograph on Supervision of Financial Market Infrastructures in Singapore

In January 2013, MAS published the Monograph on Supervision of Financial Market Infrastructures in Singapore. This monograph describes MAS’ approach in supervising Financial Market Infrastructures2 (FMIs) in Singapore to foster their safety and efficiency. It updates and replacesthe 2004 monograph on MAS’ Roles and Responsibilities in Relation to Securities Clearing and Settlement Systems in Singapore. This monograph also explains MAS’ application ofthe Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) Principles for FMIs (PFMI). The PFMI sets out international standards designed to ensure that the infrastructure supporting global financialmarkets is robust and well-placed to withstandfinancialshocks. It provides guidance on theidentification, monitoring, mitigation and management of the full range of risks that arise in or are transmitted by FMIs.

Technology Risk Management Notice and Guidelines

In June 2013, MAS issued the Technology Risk Management Guidelines and Notice to strengthentechnology risk management capabilities infinancial institutions. The Guidelines were enhanced from the existing Internet Banking and Technology Risk Management Guidelines(IBTRM) to address existing and emerging technology trends as well as security concernsin the financial industry. The Notice defines a set of legal requirements relating to technology risk management for financial institutions.Under the Notice, financial institutions are required to maintain a high level of reliability, availability and recoverability of critical IT systems and to implement IT controls to protect customer information from unauthorised access or disclosure. In addition, financial institutions are required to report major system malfunctions and IT security incidents promptly to MAS.

Enhancing Corporate Governance Standards

To enhance the corporate governance standards in listed companies, MAS accepted therecommendations of the Corporate GovernanceCouncil and issued the revised Code of Corporate Governance (Code) on 2 May 2012. The key changes to the Code were in the areas of director independence, board composition, director training, multiple directorships, alternate directors, remuneration practices and disclosures, risk management, as well as shareholder rights and roles. The revised Code took effect for listed companies in respect of annual reports for financial years commencing from 1 November 2012.

Following the issuance of the revised Code of Corporate Governance, the Corporate Governance Council released its Risk Governance Guidance for Listed Boards (Guidance) on 10 May 2012. The Guidance is intended to provide key information on risk governance to all Board members. This includes factors which the Board should collectively consider when overseeingthe company’s risk management framework and policies, and the Board’s and Management’s respective responsibilities in managing the company’s risks.

MAS also sought to enhance corporate governance in banks by issuing MAS Notice 643 which details MAS’ requirements relating to banks’ transactions with their related parties. The requirements seek to minimise the risk of abuses arising from conflicts of interest, and to align banks’ procedures on related party transactions with international best practices. Among other things, MAS Notice 643 requires banks to ensure that every related party transaction is conducted free of conflicts of interest and on no more favourable terms than similar transactions with non-related parties under similar circumstances. Bank boards and management are also required to exercise adequate oversight and control over all relatedparty transactions.


Develop and Implement a Regulatory Framework for OTC Derivatives

MAS is working towards implementing the recommendations of the Financial Stability Board (FSB) on strengthening regulation of over-the-counter (OTC) derivatives. In February 2012, MAS consulted on policy proposals to: (a) mandate the reporting and clearing of OTC derivatives; (b) extend the current regulatory regimes for market operators,clearing facilities and capital market intermediaries to include OTC derivatives; and (c) introduce a new regulatory regime for trade repositories. MAS also sought public feedback on whether it is appropriate to require trading of standardised OTC derivative contracts on exchanges or electronic trading platforms at this stage, taking into account the nature of the derivatives markets in Singapore.

MAS will implement the OTC regulations in phases. Amendments to the Securities and Futures Act (Cap. 289) for phase 1, which include(i) mandating the reporting and clearing of OTCderivatives; (ii) extending the current regulatory regimes for clearing facilities to include OTC derivatives and; (iii) introducing a new regulatory regime for trade repositories, were passed by the Singapore Parliament inNovember 2012. Mandatory reporting of OTC derivatives is expected to begin in H2 2013,and mandatory clearing to begin in H1 2014.

MAS intends to implement fully the global OTC derivatives reform agenda, taking into account the characteristics of Singapore’s markets. We will continue to participate in and contribute actively at international discussions on OTCderivatives reforms, such as the FSB OTC Derivatives Working Group, OTC Derivatives Regulators’ Group, BCBS-IOSCO Working Group on Margin Requirements and theCPSS-IOSCO Working Group on access to trade repositories’ data.

Implementation of Enhanced Regulatory Regime for Fund Management Companies

Following a series of policy and legislative consultations, MAS implemented the enhancedfund management regulatory regime on7 August 2012. The enhanced regime aimsto raise regulatory standards and supervisoryoversight of the fund management industry. Smaller fund managers that were previously exempt as they serve restricted numbers of qualified investors now have to apply forregistration or licensing and more than 400of them had done so by February 2013. To qualify for a licence or registration, they have to meet admission criteria such as capitaland competency requirements. In addition, enhanced business conduct requirements applyto all fund managers under the enhanced regime. To ensure a smooth transition to the enhanced regime, MAS conducted a series of industry briefings in August 2012 to familiarise theindustry with the new requirements. MAS alsolaunched a new Corporate E-Lodgment system to facilitate the admission process for registered and licensed fund management companies, and for the submission of certain ongoingregulatory returns.

Offers and Prospectuses Electronic Repository and Access (OPERA)

In April 2012, MAS began rolling out enhancements to our on-line database that hosted prospectuses for offers of shares, debentures, units in business trusts and collective investment schemes. The Offers and Prospectuses Electronic Repository and Access (OPERA) platform was progressively upgraded to facilitate the electronic lodgment of prospectuses as well as offer documents in respect of mergers and acquisitions under the Singapore Code on Take-overs and Mergers. OPERA now also allowsusers to submit on-line applications for registrationof business trusts.


Payment System (MEPS+)

MAS refreshed the system and application software used by the MAS Electronic Payment System (MEPS+), Singapore’s real-time gross settlement system in May 2012. In November 2012, MEPS+ was upgraded to support the Society for Worldwide Interbank Financial Telecommunication’s (SWIFT) new message format and new business requirements to achieve better risk management and efficiency. MEPS+ handled an average of 18,800 transactions (S$70 billion) per day in 2012, an increase of 8% compared with 2011.

MAS conducts regular contingency exercises with the MEPS+ participants, CLS Bank and SWIFT to ensure that the national payment system remains stable and resilient, to minimise market disruption.

A TRUSTED FINANCIAL CENTRE

Rates Review

In July 2012, MAS directed banks to comprehensively review their rate setting processes for the Singapore Interbank Offered Rate (SIBOR), Swap Offer Rate (SOR) and Non Deliverable Forward (NDF) foreign exchange contracts. This was in line with similar reviews conducted by regulatory authorities in other jurisdictions on key market interest rate benchmarks. Following the conclusion of the review, MAS took supervisory actions against twenty banks for deficiencies in the governance, risk management, internal controls, and surveillance systems relating to their involvement in benchmark submissions. These actions include imposing additional statutory reserves, and directing banks to adopt measures to address their deficiencies and conduct an independent review to ensure the robustness of their remedial measures. Separately, MAS issued a consultation paper ona proposed regulatory framework for financial benchmarks. The proposed framework took into account relevant international developmentson financial benchmarks, including the reviews conducted by the Bank of International

Settlements (BIS) and International Organisation of Securities Commissions (IOSCO). The Association of Banks in Singapore (ABS) and the Singapore Foreign Exchange Markets Committee (SFEMC) had also submitted their recommendation to MAS on measures to strengthen the governance and design of benchmark rates setting processes in Singapore for SIBOR, SOR, and NDF foreign exchange contracts. Changes to the ABS benchmark rate setting processes will be rolled out progressively over the course of H2 2013. Strengthen Anti-Money Laundering / Countering the Financing of Terrorism Requirements for Financial Institutions

Singapore participates actively in global efforts to combat money laundering, terrorism financing and proliferation financing. As a member of the Financial Action Task Force (FATF), Singapore is fully committed to enhancing our regulatory regime to be in line with the revised FATF Standards. Financial institutions operating in Singapore are required to comply with MASrequirements, which include the MAS Notice on the Prevention of Money Laundering and Countering the Financing of Terrorism (AML/CFT). Financial institutions are required to identify and know their customers, including beneficial owners, to conduct regular account reviews, and to monitor and report any suspicious transactions. We will continue to work in partnership with the industry to protect our financial sector against threats from cross-border crimes.

In line with the revised FATF’s recommendations,Singapore will criminalise the laundering of proceeds from serious tax crimes from 1 July 2013. A public consultation exercise was carried out to gather industry views and feedback onthe proposal. MAS has responded to the feedbackreceived and has also issued further guidance to the industry to facilitate effective implementation of this new FATF requirement. In addition to meeting the existing international AML/CFT requirements on suspicious transactions reporting, MAS also issued new notices requiring financial institutions to report to MAS suspicious


activities and incidents of fraud where such activities/incidents are material to the safety, soundness or reputation of the financial institution. Financial institution board members are also required to attend training on AML/CFT.

Enforcement of Anti-Money Laundering/Countering the Financing of Terrorism Regulations

Over the last three years, MAS conducted a total of 108 AML/CFT inspections covering banks, insurance companies, money changers, remittance agents, capital markets services licensees, licensed trust companies, licensed financial advisers and registered insurance brokers. MAS noted that most institutions had in place the necessary policies, procedures and controls, congruent to the nature, size and complexity of their activities, to combat money laundering and terrorism financing. In addition,the institutions had invested in systems andpeople over the years to strengthen their AML/CFT measures. There is, however, room for improvement in several areas. The frameworks and policies for the identification and classification of high-risk accounts, and the performance of enhanced due diligence measures for such accounts need to be strengthened. MAS also noted instances where the rigour with which customer due diligence measures were performed could be strengthened, such as the screening of customer names and the determination of customers’ source of wealth. Such inadequacies in the execution of controls hindered the effective application of customer due diligence measures necessary to gain a reasonable understanding of customers, theintended nature of business relations, and expected account activity. MAS takes a serious view of breaches of AML/CFT regulations and failure by financial institutions to institute a robust AML/CFTcontrol framework. Sanctions are imposed on institutions for regulatory contraventions and deficiencies in AML/CFT measures. These include formal warnings, reprimands, restrictions on operations, financial penalties and revocation of licences. Over the last three years, MAS has issued a total of 47 warnings and reprimands,

restricted the operations of seven institutions, and imposed financial penalties on 22 institutions. MAS has also revoked or did not renew the licences of 13 money changers / remittance agents. MAS requires the senior management of financial institutions to set the right tone and foster a strong AML/CFT control culture to prevent Singapore’s financial system from being used to harbour or as a conduit for illegitimate funds.

Industry Sound Practices to Further SafeguardSingapore’s Wealth Management Sector

On 28 March 2013, the private banking industry in Singapore launched a set of sound practices. Its objective is to safeguard the industry from being used as a platform to harbour proceeds from serious tax crimes. It comes on the back ofnew FATF recommendations on the designation of serious tax offences as money laundering predicate offences.

These sound practices set out standards for private banks to detect and deter funds where there is suspicion that they are proceeds from serious tax crimes. These include guidance on implementing client acceptance policies, transactions monitoring and performing criticalreviews of existing client pools.

A PURPOSEFUL FINANCIAL CENTRE

Anchor and Grow the Core Industry Pillars ofSingapore’s Financial Centre: Foreign Exchangeand Derivatives Markets, Corporate Debt Market, Asian Dollar Market, Asset Management, Infrastructure Finance

Foreign Exchange (FX)

Singapore’s FX market registered slight growth with total average daily trading volume in October 2012 at US$361 billion according to the biannual Singapore Foreign Exchange Market Committee (SFEMC) survey results. This was a 2.6% increase from April 2012 volumes.

Trading of listed financial and commodity derivatives on domestic platforms, such as Singapore Exchange (SGX), Singapore Mercantile Exchange (SMX) and Cleartrade Exchange, continued to register stable growth. In particular,


the number of futures and options traded on SGX in 2012 increased 16% y-o-y to hit a newhigh of 76 million contracts, boosted by recordgrowth of its flagship China A50 futures contract.

Developments in OTC Derivatives Markets

Following global regulatory reforms of the OTC derivatives market, MAS has been working closely with the industry to respond to the new regulatoryenvironment.

In September 2012, the Singapore Foreign Exchange Market Committee (SFEMC) issued a public statement to commit to meet high standards for electronic execution and confirmation of OTC interest rate derivative transactions by 30 June 2013. This reflects the industry’s commitment to increase the level of standardisation of the OTC derivatives market, and towards transparency and moreeffective risk management.

In the aspect of OTC derivatives clearing, total clearing volume and product offering have increased over the past year. For commodities derivatives, SGX AsiaClear reported a healthy 77% y-o-y increase in total clearing volume for energy, freight and dry bulk-related derivatives in 2012. SGX AsiaClear continued to anchor itself as the leading clearinghouse globally for iron ore derivatives with the launch of iron ore options clearing in September 2012 and a record year of 109.7 million metric tonnes of iron ore swaps andoptions cleared. It also expanded its product offering with the introduction of a futures contract suite called AsiaClear Futures,providing customers the continuity to tap on the fast-growing liquidity pool in iron ore swapsand other Asian commodities. In OTC financial derivatives clearing, SGX Asiaclear continued to witness steady growth since its launch in November 2010. As at end of Q1 2013, SGX cleared over S$340 billion in notionalvalue of SGD and USD Interest Rate swaps, as well as Asian FX Forwards.

To help the region meet impending OTC derivatives trade reporting obligations, the Depository Trust & Clearing Corporation (DTCC)

opened its Asia Pacific global data centre and office headquartered in Singapore in December 2012. DTCC was selected by international industry associations as the preferred global trade repository across the asset classes. The Singapore-based data centre is DTCC’s first in Asia and part of its global triangulated infrastructure designed to support DTCC’s Global Trade Repository services. This development will contribute to increased transparency in the OTC derivatives market.

Asset Management

Based on the 2012 Singapore Asset ManagementIndustry Survey, assets managed by fund managers in Singapore stood at S$1.63 trillion. Asset under management (AUM) grew by 21.5 % y-o-y as a result of strong inflows and higher market valuations. Approximately 80% of the AUM was sourced from outside Singapore and more than 70% of the total assets were invested in the Asia-Pacific region, reflecting Singapore’s role as an asset management hub serving both regional and international investors.

Corporate Debt Market

The Singapore corporate debt market was buoyant in 2012, encouraged by a low interest rate environment and investors seeking relative stability in the fixed income markets. Outstanding volumes grew by 14% y-o-y to S$231 billion asat end of 2012. Issuance activity was also at its highest since 2007, with S$134 billion of debt securities issued in all currencies during the year.

In the Singapore Dollar (SGD) bond market, a record S$30.5 billion of bonds were issued, well surpassing the previous high of S$24.2 billion achieved in 2010. In addition, the weighted average maturity of SGD bond issuances in 2012 increased by to 12.9 years from 7.5 years in 2011. Singapore remains an attractive issuancevenue for several foreign entities. In 2012, non-Singaporean firms accounted for 22% of all SGD debt issuances.


Islamic financial services continued to grow. The year also saw renewed interest in sukuk issuances in Singapore. Two SGD sukuk totalling S$130 million were issued in 2012 by local entities including the first convertible sukuk in Singapore. The first half of 2013 saw a further two sukuk issues amounting to S$100 million and the launch of a S$500 million multi-currency corporate sukuk programme by a local entity.

Infrastructure Finance

Infrastructure financing continues to be a key sector in Singapore’s financial markets in supporting regional growth and financing needs. Together with other government agencies, we are bringing together expertise from across the infrastructure value chain, from project developers to Engineering, Procurement and Construction (EPC) players and multilateral development banks, to leverage on Singapore’s status as a financial centre to facilitate investments into Asia’s immense infrastructural needs. For example, the World Bank’s investment arm, the International Finance Corporation (IFC), will be setting up in Singapore its first Asset Management Company (AMC) office outside Washington DC, to invest in infrastructure projects in emerging markets. The AMC manages the IFC Global Infrastructure Fund, which will invest equity into infrastructure projects on acommercial basis. In addition, national export credit agencies such as JBIC and KfW have set up offices in Singapore to serve corporates that wish to tap on infrastructure opportunities in the region.

Insurance

The non-life insurance industry’s growth moderated in 2012, growing at 4.8% to $9.3 billion. This was due to a decline in reinsurance underwriting activity following the 2011 natural catastrophe events in Asia-Pacific. The 2011 events tested Singapore’s ability to handle the burden of claims in the aftermath of the major catastrophes. However the reinsurers responded strongly by recapitalising and even strengthening their capital position to handle the claims. The experience strengthened Singapore’s resilience, and also built up its reputation as a ‘first responder’ to these major events in Asia. Concurrently, re/insurers also strengthened their capabilities on underwriting natural disasters risk by enhancing the quality of their data

and risk modelling through partnerships with research institutes such as Nanyang Technological University’s Institute Catastrophe Risk Management (on Maritime Risk, Urban Risk), Asia Risk Centre (Agriculture Risk and Food Security Research); as well as commercial modelling agencies.

Enhancing the RMB infrastructure in Singapore

On 2 April 2013, PBC and MAS signed a Memorandum of Understanding (MOU) on RMB Business Cooperation, while PBC and Industrial and Commercial Bank of China (ICBC) Singapore branch signed a RMB clearing agreement to formalise the clearing arrangements. On 27 May 2013, ICBC Singapore commenced its RMB clearing services in Singapore. Having a RMB clearing bank in Singapore is a significant milestone for Singapore as it provides financial institutions in Singapore the opportunity to play a greater role in intermediating the growing trade and investment flows between China and the rest of the world. With the build-up of RMB liquidity in Singapore, a wider range of RMB products and services will be offered by financial institutions in Singapore to better meet the financing, investment and risk management needs of the market. MAS will continue to work with the industry and our partners to develop the broader RMB ecosystem, ensuring a sound and vibrant growth of this new market.

Asian Dollar Market

The Asian Dollar Market posted robust growth in 2012. Total foreign currency lending in Singapore increased by 7.4% y-o-y. In particular, non-bank loans to East Asia grew strongly at 8.3%, underpinned by economic performance in China and Hong Kong. Non-bank lending to ASEAN also grew at a healthy 5%. Going forward, we expect growth in the Asian Dollar Market to be sustained on the back of steady growth of the Asian region. With the launch of the offshore RMB market in Singapore in May 2013, the Asian Dollar Market is also well positioned to capture growing RMB flows in the region.


Promote Local Talent and Leadership Pipeline

As Singapore’s financial centre remains open to global talent, MAS is making concerted efforts to put in place initiatives to develop a strong core of Singaporean financial sector professionals. This includes efforts to raise the competency of Singaporean professionals through training programmes, allowing Singaporeans to undertake and excel in roles in important growth segments. MAS will also be providing more scholarships to enable Singaporeans to develop specialist skills through post-graduate programmes in such areas as quantitative finance, risk management, actuarial science and specialty insurance.

MAS will work closely with financial institutions to nurture Singaporeans for leadership roles, through training and different jobs and country exposures. To raise financial sector productivity, MAS will work with the industry to encourage review of work processes to enhance efficiencies in specific segments of financial activity. These would include developing shared infrastructure, promoting automation and exploiting data synergies.


VALUED PARTNER ON THE

INTERNATIONAL FRONT

International Engagements

Promote Consolidated Supervision and Cooperation with Foreign Regulators

In 2012, MAS hosted supervisory college meetings for the three Singapore banking groups and Great Eastern Holdings Limited. These college meetings provided a forum for MAS andhost supervisors of these institutions to exchange views and assessments of the institutions’ cross-border activities. The discussions enhanced MAS’ supervisory oversight of these financial groups and helped foster closer ties with host supervisors in the cross-border supervision of the groups. In addition, MAS continues to participate in supervisory college meetings of international and regional banks and insurers as host supervisor. This allows MAS to cooperate more closely with the home supervisors of foreign banks and insurers and strengthen our understanding of developments in other parts of the group that may have an impact on the Singapore operations.

Crisis Management Group Meetings

MAS is a member of the Crisis Management Group (CMG) of six globally systemically-important banks and continues to participate inthe CMG meetings. The meetings facilitate information exchanges between home and host supervisors and the establishment of institution-specific cross-border cooperation agreementsto support recovery and resolution planning. This enhances preparedness and cross-border coordination for crisis management, includingrecovery and resolution planning, for theseinstitutions.

Islamic Financial Services Board MAS is a full member of the Islamic Financial Services Board (IFSB), a multilateral standard setting and developmental agency for the Islamic finance industry. We sit on the governing Counciland are also represented on its TechnicalCommittee (TC), the deputies-level decision-making body for the organisation. The TC oversees the work on standard setting and provides guidance to the IFSB Secretariat on Islamic finance developmental initiatives approved by the Council. MAS has supported and contributed to the work of the IFSB through our participation in the various standard setting Working Groups and Task Force, as well as helped to further raise industry awareness through the hosting of 6th IFSB Summit in 2009 and seminars on Takaful and Islamic Capital Market Development. In the continuation of these efforts, MAS hosted the 26th Meeting of the TC in Singapore in February 2012.

Singapore’s Participation in the International Monetary Fund’s Financial Sector Assessment Programme

The Financial Sector Assessment Programme (FSAP), which was established in 1999, is a comprehensive and in-depth external assessment of a country’s financial sector. The assessment contributes to a deeper understanding of the stability and resilience of the financial sector. As an international financial centre, Singaporeis committed to undergoing periodic financial stability assessments.

In 2013, MAS participated in an FSAP, conducted by the International Monetary Fund (IMF). The FSAP involved two onsite missions to Singapore for the standards and financial stability assessment. During the first mission,

COMMITTED TOWARDS INTERNATIONAL EFFORTS ON FINANCIAL STABILITY AND FINANCIAL REGULATORY REFORM

VALUED PARTNER ON THE INTERNATIONAL FRONT


3 As of May 2013

the FSAP Assessors met with MAS and other government agencies, as well as financial sector industry players and industry associations, to study Singapore’s observance of newly revised international standards on banking, insurance and securities. The assessment process was rigorous and MAS benefited from the productive discussions with the FSAP Assessors.

The second onsite mission will take place in H2 2013 covering an assessment of financial stability of the system, including stress tests. The mission will also cover Singapore’s observance of the new Principles for Financial Market Infrastructures.

Strengthening the International Monetary Fund’sResources

The International Monetary and Financial Committee (IMFC), chaired by Deputy Prime Minister and MAS Chairman Tharman Shanmugaratnam, together with the G20, undertook efforts to enhance the International Monetary Fund’s (IMF)resources for global crisis prevention and resolution in April 2012. These efforts by the international community strengthened the IMF resources by US$461 billion3, with the first batch of bilateral borrowing agreements signed by the October 2012 meeting of the IMFC. Singapore played a key role in this international effort by working closely with the IMF and its members, as well as the G20 to galvanise contributions at the G20 Los Cabos Leaders’ Summit in June 2012.

In October 2012, the IMFC expressed support for the strengthening of the IMF’s surveillance framework through the adoption of a new Integrated Surveillance Decision, a Financial Surveillance Strategy and the launch of a pilot External Sector Report. The IMFC provided guidance to the Executive Board of the IMF in its comprehensive review of the quota formula, which was completed in January 2013. This review built on inputs from the IMFC Deputies, which is chaired by Singapore. At the April 2013 Meeting of the IMFC, the IMFC, among others, advanced discussions on nurturing a sustainable recovery in the world economy and on dealing with financial stability risks arising fromlarge and volatile capital flows.

Singapore is Committed Toward International Efforts for Financial Regulatory Reform

As a member of the main committees and multiple working groups of the Financial Stability Board (FSB), Basel Committee on Banking Supervision (BCBS), International Association of Insurance Supervisors (IAIS), International Organisation of Securities Commissions (IOSCO), and Committee on Payment and Settlement Systems (CPSS), MAS continues to contribute to the development and implementation of international regulatorystandards and the enhancement of global financial stability. MAS co-chaired the BCBS Core Principles Group which delivered the revised Core Principles for Effective Banking Supervision in September 2012. The Core Principles are the global standard for sound prudential regulation and supervision of banks and banking system. The revisions incorporate key lessons from the last financial crisis to strengthen supervisory practices and risk management, with particular emphasis on a more forward-looking and effective risk-based approach to supervision. MAS alsoco-chairs the BCBS working group that analyses banks’ risk weighting of assets held in the banking book. This work is part of the BCBS Regulatory Consistency Assessment Programme to ensure consistent implementation of the Basel framework. In addition, we are a member of the BCBS Working Group on Liquidity that developed the final text of the revised Liquidity Coverage Ratio (LCR) in January 2013. The LCR is an essential element of the Basel III reforms to promote the short-termresilience of banks’ liquidity risk profiles and improve the banking sector’s ability to absorb shocks arising from financial and economic stress.

At the FSB, MAS chaired the FSB working group on Risk Governance that completed the thematic peer review on risk governance in February 2013 to take stock of risk governance practices at both national authorities and firms. The peer review identified sound practices and sets out recommendations that will help raise the bar on supervisory expectations for risk governance. MAS also participated actively


in the discussions which help shape international regulatory proposals on resolving failing financial institutions, addressing the systemic and moral hazard risks associated with systemically important financial institutions, implementing over-the-counter derivatives reforms, as well as strengthening the oversight and regulation of shadow banking.

MD, MAS has also been appointed Chair of the FSB Standing Committee on Standards Implementation (SCSI), and will serve a two-year term from 2013 to 2015. The SCSI is one of four FSB Standing Committees, and is taskedwith ensuring comprehensive and rigorous monitoring of agreed G20/FSB financial reformsin consultation and coordination with relevant standard setters. Under MAS’ chairmanship, SCSI will coordinate and drive implementation monitoring efforts across key G20 initiatives, including OTC derivatives reforms, resolution regimes and shadow banking.

Concluding an Inter-Governmental Agreement on the Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act (FATCA) is a United States (US) law which requires all financial institutions outside of the US to pass information about financial accounts held by US persons to the US Inland Revenue Service (US IRS) on a regular basis. Singapore will conclude with the United States a Model 1 Inter-Governmental Agreement (IGA), under which information is exchanged between Singapore and US agencies. The Model 1 IGA will help ease the compliance burden and facilitate financial institutions in Singapore to comply with FATCA.

Regional Engagements

Strengthening Cooperative Ties with Fellow Regulators

MAS organises and participates actively in various bilateral and regional events to strengthen cooperative ties with central banks and fellow regulators. For instance, MAS is an active member of the annual ASEAN Insurance Regulators Meeting (AIRM). MAS also chairs the ASEAN Capital Markets Forum (ACMF) and the Working Committee on Capital Market Development (WC-CMD). We work closely with ASEAN regulators and the private sector to promote the ASEAN Economic Community 2015 visionof strengthening and deepening regional capital markets.

ACMF and the ASEAN Exchanges have made significant progress on initiatives to promote the integration of ASEAN capital markets. These include the launch of the ASEAN Trading Link, the implementation of the fully harmonised ASEAN Disclosure Standards, the implementation of a framework for expedited review of secondary listing applications, the development of a regulatory framework for cross-border offers of mutual funds, and the completion of acommon regulatory model to facilitate the cross-border provision of supporting marketing services. The ASEAN Trading Link will benefit ASEAN investors who will have greater access to a broader and more diverse portfolio of stocks to invest in. To enhance the ASEAN Trading Link further, it will be supported by ongoing work inthe area of clearing, settlement and depositorylinkages.

As chair of the WC-CMD, MAS works with ASEAN counterparts to develop regional capitalmarkets. Through 2012-2013, WC-CMD continuesexisting efforts, including updating the ASEAN Bond Market Development Scorecard, which serves as a useful benchmark for ASEAN finance and central bank officials to monitor the progress of ASEAN’s bond market development, openness and liquidity. The WC-CMD also identifies capacity building programmes and the exchange of views on best practices, in an effort to reduce market gaps as identified in the


Scorecard. Other key initiatives include enhancing ASEAN members’ understanding in the area of over-the-counter derivatives and a partnership with ACMF and ASEAN Secretariat on an independent study of regional bond market development initiatives.

Executive Meeting of East Asia-Pacific Central Banks

MAS hosted the 43rd Executive Meeting of East Asia-Pacific Central Banks (EMEAP) Deputies’Meeting and all 11 EMEAP member centralbanks and monetary authorities participated in the meetings. Deputies were updated onthe work plans and progress of the various EMEAP Working Groups (on Banking Supervision, Financial Markets, and Payment andSettlement Systems), as well as the ITDirectors’ meeting. As the Deputy Chair of the EMEAP Monetary and Financial Stability Committee (MFSC), MAS also hosted the 12th EMEAP MFSC Workshop on 22 March 2013, which saw a useful exchange of viewson important financial market developmentsand continued collaboration initiatives.

Maintaining Strong Bilateral Relations

MAS continues to maintain regular policy dialogues with fellow financial regulators. In the past year, MAS held high-level bilateral exchanges with the China Banking Regulatory Commission (CBRC), and the Authoriti Monetari Brunei Darussalam (AMBD). Issues discussed included macroeconomic policies, impact from the Eurozone crisis and international supervisorydevelopments.

MAS-AMBD Bilateral Meeting

The inaugural high-level bilateral meeting between MAS and AMBD was held between

18 and 19 January 2013, in Bandar Seri Begawan, Brunei Darussalam. The host delegation was led by AMBD Managing Director Dato PadukaHj Mohd Rosli bin Hj Sabtu, while the MAS delegation was led by MAS Managing Director Ravi Menon. The discussion at the inauguralhigh-level bilateral meeting revolved aroundeconomic, monetary and financial developments,banking supervision and training, currency issuesand payment and settlementsystems. Bilateral high-level meetings will enhance the already strong cooperative ties between MAS and AMBD, and provide a regular platform for both monetary authorities to discuss issues of mutual interest.

Revision of the Chiang Mai Initiative Multilateralisation Agreement

ASEAN+3 Finance Ministers and Central Bank Governors endorsed the revised Revision of the Chiang Mai Initiative Multilateralisation (CMIM)Agreement on 3 May 2013. The revised CMIMAgreement incorporates measures to strengthen theCMIM that was earlier agreed in May 20124.

ASEAN+3 countries also agreed to transform the ASEAN+3 Macroeconomic Surveillance Office(AMRO), which carries out regional surveillanceactivities to support CMIM decision-makingprocesses,to an international organisation. Thetransformation will enable AMRO to conductmacroeconomic and financial surveillance as anindependent international organisation, contributingfurther to the regional financial stability alongwith the strengthened CMIM.

MAS and the Singapore Ministry of Finance jointly provide close and ongoing host country support for AMRO. A Host Country Memorandum of Understanding (MOU) with AMRO was signed on2 May 2013.

The MAS and host delegation

4 This includes: (i) doubling the total fund size to US$240 billion, (ii) introducing a crisis prevention facility, (iii) increasing the IMF-delinked portion to 30% in 2012 with a view to increasing it to 40% in 2014 subject to review should conditions warrant, and (iv) lengthening the maturity and supporting periods for both the IMF-linked and IMF-delinked portions of the CMIM.


MAS Lecture

Governor Agustin Carstens shared his views on the state of the world economy, crisis resolution strategy and capital flows to emerging markets with 350 guests from the regional central banks, senior representatives from the financial institutions, public sector officers, academics and representatives from the industry associations.

Since its launch in March 2000, MAS Lecture has provided a platform for distinguished members of the international financial community to offer perspectives on significant economic and financial issues of the day. Previous speakers included William McDonough, former President of the Federal Reserve Bank of New York; Robert Rubin, former Chairman of the Executive Committee, Citigroup Inc and former US Treasury Secretary; Sir Howard Davis, former Executive Chairman of UK Financial Services Authority; Jean-Claude Trichet, President of the European Central Bank; Toshihiko Fukui, former Governor of the Bank of Japan and Dominique Strauss-Kahn, former Managing Director of the International Monetary Fund.

Mr Ravi Menon, MAS’ Managing Director, presenting a gift to Mr Agustin Carstens, Governor of the Banco de Mexico, at the MAS Lecture 2013. The gift is a unique fusion of calligraphy and wood carving, and depicts the Chinese character “宝” which means “Treasure”.

Box 2


SERVINGTHE PUBLIC,ENGAGING

STAKEHOLDERS

The Singapore Third Series Coins

On 25 June 2013, MAS issued a new circulation coin series. The Third Series coins mark Singapore’s progress as a nation. Coins are renewed, usually every 20 to 30 years,to update their designs using icons that the public can better identify with, andto incorporate new security features to stay ahead of counterfeiters.

The Third Series coin designs feature national icons and landmarks of our nation, economy and society. The look and feel of the new coins were developed in consultation with key coin validator suppliers and special interest groups such as the Singapore Association for theVisually Handicapped. Feedback from focus groups was also considered.

All past series coins remain legal tender and the public can continue to use them for paymentalongside the new coins. The new series coins are issued at all retail banks in Singapore and are accepted at their automated coin deposit machines.

To facilitate a smooth transition and minimise public inconvenience, coin-operated machines at public venues such as the MRT/LRT stations have been calibrated to accept both existingand new series coins. MAS has also been working with businesses with coin-operated facilities such as vending machine operators and supermarkets to prepare them for the launch of the new coins. These coin-operated machines will be calibrated in phases due to technicaland cost considerations.

Box 3

ENGAGING THE PUBLIC

SERVING THE PUBLIC, ENGAGING STAKEHOLDERS


Beside the Chinese Almanac, Native Orchids andNational Day Celebration coins, MAS launched and issued the Giant Panda Commemorative Coins in September 2012 to mark the arrival oftwo giant pandas – Kai Kai and Jia Jia, in Singapore.The coins also helped highlight the threat of extinction faced by giant pandas today and

the importance of wildlife conservation. The coinscome in three different versions with a similar design concept featuring Kai Kai and Jia Jia in their natural habitat. The Silver Proof Colour Coin is in a unique oval shape, the first to be issued by MAS. Each version has a limited mintage of 10,000 pieces.

Gross Circulation 2009 2010 2011 2012 2013(S$Billion)

Notes 21.05 22.65 24.74 27.58 30.27Coins 1.12 1.15 1.20 1.25 1.29Total 22.17 23.80 25.94 28.83 31.56

Chart 4: Gross Currency in Circulation

S$

Bill

ion

20090

5

10

15

20

25

35

30

2010 2011 2012 2013

Managing Dollars and Cents

As at 31 March 2013, the gross and active currency in circulation were S$31.6 billion (Chart 4) and S$27.9 billion respectively. The gross currency in circulation increased 9.5% over the year, with S$50.8 billion worth of notes and coins issued to banks and S$48.2 billion returned for the financial year.

In January 2013, MAS launched an initiative to encourage the use of “good-as-new” S$2 notes during Lunar New Year. “Good-as-new” S$2 notes are clean and crisp notes that are retrieved immediately after the Lunar New Year. Substituting the use of new S$2 notes with “good-as-new” ones for ‘hong bao’ reduces wastage and helpspreserve the environment. Public response was very encouraging, with a take-up rate for“good-as-new” notes at about 11% of the total S$2 notes issued.

Giant Panda Commemorative Coins to mark the arrival of two giant pandas – Kai Kai and Jia Jia, in Singapore.


MAS Website

In June 2012, MAS launched our revamped website which incorporated feedback from a public stakeholders’ engagement exercise. Thenew website also took into account recent technological developments and has an improved look and feel. The enhanced accessibility and navigability of the new website has received positive feedback from users who find greater ease in accessing information from MAS website through various smartphone and tablet devices.

GENESYS

To enhance MAS’ responsiveness to public enquiries and improve staff productivity, a General Enquiries System (GENESYS) waslaunched in November 2012.

GENESYS allows MAS to manage all public queries and feedback, received via multiple channels such as emails, letters or feedback forms on a common platform. All correspondences pertaining to a public query are centrally managed and tracked, ensuring that MAS adheres to its service standard when replying to the members of the public who have written in. As a central repository for all queries received by MAS, the system provides MAS with greater insightsinto the areas of interest to the general public and the profile of the enquirers seekinginformation from MAS.

PROTECTING CONSUMERS

Enhancing Credit Cards and Unsecured Credit Rules

On 21 December 2012, MAS issued a consultation paper on proposed changes to credit cards and unsecured credit rules. The changes were aimed at improving financial institutions’ lending and disclosure practices, empowering individuals to make better borrowing decisions, and helping individuals at risk of credit problems avoid getting into greater debt. MAS is fine-tuning the proposed rule changes in view of the feedback received, and will issue the revised rules in the second half of 2013.

Enhancing Regulatory Regime to Raise Market Conduct Standards and Safeguarding Interestsof Retail Investors and Public

Following the review of its regulatory regime governing the sale and marketing of listed and unlisted investment products in 2009 and 2010, MAS has made significant enhancements to its regulatory regime to raise market conduct standards and protect the interests of retail investors. These include implementing measuresaimedat promoting more effective disclosure for retail investment products, and introducing requirements for intermediaries to formally assess a retail customer’s investment knowledge and experience before selling certain more complex investment products (termed Specified Investment Products or SIPs) to the customer.

To give legal effect to measures that require legislative changes, the Securities and Futures (Amendment) Act 2012 and Financial Advisers(Amendment) Act 2012 were passed by Parliament in November 2012.

To ensure the continued relevance and effectiveness of the requirements, as well as in response to public feedback, MAS refined the list of complex investment products that are subject to additional safeguards in December 2012. Intermediaries are also required to furnish a Risk Warning Statement as prescribed by MAS to all retail investors before allowing them to transact in an overseas-listed investment product for the first time on or after 28 February 2013. This is to ensure that investors are adequately informed of the risks involved in trading overseas-listed investment products.

MAS will continue to monitor our regulatory framework to facilitate the growth of the capital markets while ensuring that appropriate safeguards are in place to protect the investingpublic’s interests.

Mystery Shopping Survey

MAS engaged an external consultant to conduct a mystery shopping survey and released the


Raising the Bar for the Financial Advisory Industry

On 26 March 2012, MAS announced the commencement of the Financial Advisory Industry Review or FAIR. The aim of the review was to raise the standards of practice in the financial advisory (FA) industry, and to improve the efficiency in the distribution of life insurance and investment products in Singapore. The review focused on the following five key thrusts :

• raisingthecompetenceofFArepresentatives; • raisingthequalityofFAfirms; • makingfinancialadvisingadedicatedservice; • loweringdistributioncostsbyenhancingmarketefficiency;and• promotingacultureoffairdealing.

Box 4

results of the survey on 6 July 2012. The survey focused on the financial advisory (FA) industry’s implementation of MAS’ Guidelines on Fair Dealing, pertaining to the quality and suitability of advice as well as the adequacy of information disclosure.

The survey involved 126 mystery shoppers making 500 visits to 11 banks and four insurance companies to seek financial advice from their representatives. A panel of industry practitioners was engaged by MAS to assess the suitability of the products recommended to the mystery shoppers, based on the shoppers’ personal profile, their experience during the advisoryprocess, and the sales materials obtained from the financial institutions.

The survey found that:

• Fact-find was generally carried out but the extent of information collected was inadequate. This may impede the representatives’ ability to make suitable recommendations.

• Basic product information was disclosed but other pertinent information such as risk

factors, amount and frequency of fees and charges, as well as free-look period were omitted. Inadequate product disclosures may result in consumers making poor investment decisions due to a lack of understanding of the product features and risks. • Almost a third of the product recommendations were unsuitable. In many cases, the products recommended did not match the shoppers’ financial objectives or investment horizon.

The survey results suggest that the FA industry has significant room for improvement and thefindings were considered by the Financial AdvisoryIndustry Review (FAIR) Panel, in the formulation of its recommendations.

MAS has shared the survey findings of the individual institutions with their respective seniormanagement and the overall industry resultswith the Association of Banks in Singapore (ABS) and the Life Insurance Association, Singapore (LIA). ABS and LIA have committed toworking with MAS to conduct more mystery shopping surveys of their members.


FAIR adopted a consultative approach so as to ensure that the recommendations were balanced and took into account the interests of all affected constituents and stakeholders.On 2 April 2012, a 14-member FAIR Panel chaired by MAS and comprising representatives from the industry associations, consumer and investor bodies, academia, and media, was formed to deliberate and propose recommendations on the five FAIR thrusts.

As part of the FAIR process, MAS solicited and received more than 1,300 feedback responses from the public and industry practitioners on ways to improve the FA industry. An external consultant was also appointed to conduct a comparative study of the FA industry in Singapore with that of other jurisdictions to ensure that FAIR took into account international developments and best practices. The feedback responses and results of the comparative study were considered by the FAIR Panel in its deliberations.

On 16 January 2013, the FAIR Panel announced its recommendations. There were a total of 28 recommendations made under the five FAIR thrusts. The key recommendations for each thrust are as follows:

(a) raise the minimum academic qualification for new FA representatives from 4 GCE “O” level credits to a full GCE “A” level, International Baccalaureate qualification, or a diploma awarded by the polytechnics in Singapore, or the equivalent. This is to ensure that FA representatives are able to meet the needs of a more well educated Singapore population in an increasingly complex financial environment; (b) raise the operating requirements for licensed FA firms to improve the quality of management and to ensure that these firms have adequate capital; (c) impose restrictions on the conduct of non-financial advisory activities by FA firms and representatives, as such activities could pose conflicts of interest and lead to neglect of their FA role; (d) require insurers to offer basic insurance products through a direct channel, so as to cater to certain underserved customer segments and help alleviate the state of underinsurance in Singapore; and (e) require FA firms to remunerate their representatives using the balanced scorecard approach, to supplement the current volume-based remuneration model with qualitative factors that promote fair dealing with customers.

On 4 June 2013, MAS concluded a three-month public consultation process to seek comments on the recommendations of the FAIR Panel. MAS will study all the feedback receivedcarefully before finalising any policy position, and will give the industry sufficient lead timeto implement any new rules or regulations arising from FAIR.


Enhancing Market Conduct

Between April 2012 and March 2013, MAS published a total of 56 formal regulatory and enforcement actions against companies and individuals for market conduct breaches. These actions included reprimands, composition of fines, imposition of civil penalties, and issuance ofprohibition orders. Over this period, MAS alsotook other regulatory and administrative actionsin another 210 cases.

EDUCATING CONSUMERS

MoneySENSE

MoneySENSE employed a variety of platforms to engage and help equip consumers from different walks of life with the necessary knowledge and skills to make informed financial decisions. While MoneySENSE educational effortscontinued to emphasise building awareness and equipping consumers with foundational skills in budgeting, setting goals, managingsavings and debt, buying suitable insurance and basic investing, educational initiatives were also undertaken to address thematic concerns or gaps in awareness vis-a-vis certainfinancial products, schemes and developments in the market.

Media Outreach

To extend our media outreach efforts beyond the English speaking population, we commissioned another series of the “Mind Your Money” TV Programme on Channel 8 in March 2013 to reach out to the Mandarin speaking population. Presented in an edutainment style format, the four-episode series featured tongue-in-cheek skits reflecting themes and views on money commonly shared by consumers, and interviews with experts on their opinions on topics ranging from buying a home, managing money, insurance and retirementplanning. The series was well received with approximately 964,000 viewers. Running parallel with the TV programme, a radio campaign was aired in the four official languages to disseminate a similar range of financial educationmessages. MoneySENSE radio campaign reached

out to an estimated 1.5 million listeners via live interview or in the form of radio capsules.

MoneySENSE also sponsored 10 educational articles on new and common (but hard to understand) financial products and schemes in the Sunday Times and weekend editions of Business Times and Lianhe Zaobao. The choice of topics was mainly determined by feedback and other indications that consumers could benefit from learning more in these areas. Outreach Through Other Platforms

The “My Money” seminars, a collaboration with the Association of Banks in Singapore, Securities Investors Association (Singapore), Singapore Management University Sim Kee Boon Institute for Financial Economics and National Trades Union Congress, continued to be a popular platform to highlight salient features and risks of common financial products. Approximately 3,200 participants attended the seminars which were made available in both English and Mandarin.

MoneySENSE continued to support the promotion of financial education to schools and students. For the lower primary level, we partnered the Association of Banks in Singapore and brought “Save and Spend Wisely” skits to the students. For the wider student segments, MoneySENSE continued to improve financial literacy through vendor-run programmes and competitions.


MoneySENSE - Singapore Polytechnic Institute for Financial Literacy

A highlight of the year was the launch of the MoneySENSE - Singapore Polytechnic Institute for Financial Literacy on 16 July 2012. Its launch was a significant development in the MoneySENSE financial education agenda and facilitates the delivery of financial educationto the public in a regular and structured manner. The Institute aims to build core financial capabilities across a broad spectrum of the Singapore population. The core financial capabilities are

(a) understanding money and having numeracy skills to be able to evaluate costs and benefits;

(b) understanding yourself, your rights and responsibilities; (c) managing money to live within one’s means; (d) planning ahead for your financial needs and goals; and (e) selecting financial products suitable for you.

Initially the Institute will focus on delivering financial education to working adults. To improveaccess for working adults, the Institute conducts free talks and workshops inworkplaces. The Institute is also working with community organisations to developand conduct customised programmes for Singaporeans in lower income groups.

Box 5

MoneySENSE Website

Another major initiative was the revamp of the MoneySENSE website. The new website was launched in June 2012 and features better navigation and access to content. Much of the content was revised and rewritten in simplelanguage. There are now guides to help consumers deal with financial concerns at particular life events or where there are major decisions to be made, like gettingmarried, buying a home or starting a family.

Consumers can also learn more about the various aspects of financial management such as

budgeting and saving, managing debt, financial planning and goal setting, buying insurance and basic investing. There are also guides on banking and payment services, credit facilities and loans, and on the more commonly available insurance and investment products. A budget template and financial calculators are also available to aid consumers in managing their money. We encourage consumers to visit the MoneySENSE website (www.moneysense.gov.sg)to equip themselves with useful and objectivefinancial information.


ENGAGING THE INDUSTRY

MAS Streamlines and Enhances Requirements on Disclosure of Interests in Listed Entities

In November 2012, MAS introduced a new disclosure of interests (DOI) regulatory regime to streamline and enhance the existing DOI requirements in listed entities by directors and substantial shareholders. Key changes include simplifying the notification process by removing the requirement for directors and substantial shareholders of a listed entity to separately notify the SGX of their interests or changes in interests in the listed entity, extending the DOI requirements to foreign corporations with a primary listing on SGX, making it a legal requirement for listed entities to announce the information within one business day, and introducing stifferpenalties for flagrant breaches.

Taking into account public feedback, MAS introduced new electronic notification forms foruse by reporting persons and worked with the SGX to re-design the announcement template such that listed entities can attach the forms directly for immediate dissemination. This removes the need for manual entries by listed entities and improves the efficiency of the reporting process. In conjunction with the introduction of the new DOI regime, MAS has also launched a new internal IT system, the Regulatory Actions for Interest Notification Breaches and Offences Work System (RAINBOWS), to facilitate the processing ofbreaches. RAINBOWS also serves as a repositoryfor all notifications of interests announcedvia SGXNet, and regulatory actions taken by MAS for breaches.

Enhancing Physical Security of the Financial Industry

MAS continued to work with the financial industry through the Financial District Security Programme (FDSP) to enhance their physical security, crime prevention and business resilience measures. FDSP members assessed their financial institutions against the baseline physical security guidelines developed in 2011. A self-assessment checklist was also developed to

facilitate the industry’s understanding and adoption of these guidelines. To strengthen crisis coordination and response, members validated the contingency preparedness and response framework as part of an evacuation exercise at the Marina Bay Financial Centre. Members also engaged critical service providers to understand their resilience and business continuity plans, so that continuity planning and responses by financial institutions and service providers can be enhanced.

Working with Key Stakeholders

MAS holds regular dialogues with industry associations such as the General Insurance Association of Singapore (GIA), Life Insurance Association Singapore (LIA), Singapore Reinsurers’ Association (SRA), the Institute of Certified Public Accountants Singapore (ICPAS) and the Singapore Actuarial Society (SAS). These dialogues help us to better understand the risks and challenges facing the industry, and provides a good foundation for MAS and the industry to collectively work toward good supervisory outcomes and financial stability.

Since 2011, MAS has supported an industry initiative to foster reinsurance contract certainty. Comprising industry partners such as the Reinsurance Brokers Association of Singapore, Lloyd’s Asia, SRA and the GIA, the Contract Certainty Working Group (CCWG) finalised a set of best practices to achieve reinsurance contract certainty in February 2013. The CCWGwill continue to work towards embeddingthese agreed best practices amongst industry players.

Insurance Directors’ Programme

The board of directors of a financial institution is responsible for adequate risk oversight of the organisation’s business activities, including establishing effective processes and controls to manage risks, and ensuring that these processes comply with regulatory requirements. In our efforts to reinforce the responsibilities of boards of institutions across the financial sector, MAS in consultation with directors of insurance companies, organised an Insurance Directors’


Programme for directors of four significant insurance companies and one holding company. The series of seminars focused on effective board governance and entrepreneur risk management for the insurance sector. Speakers included former regulators from developed jurisdictions.

Partnership with Academia

Since 2009, MAS has sponsored the Term Professorship in Economics and Finance at the National University of Singapore (NUS). The professorship programme seeks to enhance Singapore’s financial and economic research infrastructure and contribute to a vibrant research community and culture at local universities. In December 2012, Professor Randall Morck (Stephen A. Jarislowsky Distinguished Chair in Finance and University Professor, Universityof Alberta) visited MAS and NUS as thefourth Term Professor. An expert in financing structures, especially in Japan and China, Professor Morck delivered a public lecture titled “Japanese Lessons”, which explored how the zaibatsu5 helped jump-start Japan’s first phase of industrial development at the turn of the 20th century. He also shared his insights on corporate finance with MAS Senior Management, MAS staff, and the University.

MAS hosted other academics under its Eminent Visitor Programme during the year. In addition to meeting with MAS Senior Management, Eminent Visitors to the Economic Policy Group usually conduct in-house seminars, lectures and discussion sessions with MAS staff, and contribute an article to the Macroeconomic Review. Professor Eric van Wincoop (University of Virginia) and Professor Philippe Bacchetta (LausanneUniversity) visited in June and July 2012,respectively. During their visits, they delivered seminars on their joint research work on global financial contagion and exchange rates, and co-authored a Special Feature on self-fulfilling panics for the October 2012 issue of the Macroeconomic Review. The Group also hosted Professor Shang-Jin Wei (Columbia University) in February/March 2013 and consulted with Professor Ilian Mihov (INSEAD Singapore). For the April 2013 Review,

Professor Wei wrote about the “competitive saving motive”. Following research partially sponsored by the MAS, Professor Mihov contributed a Special Feature that developed a New Keynesian small open economy model and applied it to Singapore’s economic and policy settings. This modelling approach has now become standard in the literature and it was instructive to have Singapore’s monetary policy framework formally characterised in this way. His findings suggest that the adoption of anexchange rate-based monetary policy rule resultsin an improvement in social welfare associated with a reduction in the volatility of key macroeconomic variables, such as inflation andoutput, when compared with an interest ratepolicy rule. Further extensions of this model willallow the investigation of other specific issues of policy interest and serve as a useful complement to MAS’ existing suite of models.

5 Zaibatsu refers to Japanese conglomerates with large, pyramidal groups of listed firms under the control of families or groups of entrepreneurs.


ONE MAS: INTEGRATED

AND COHESIVE

MAS’ strength lies in our people. Guided by the shared values of integrity, commitment, enterprise and teamwork, MAS staff continued to demonstrate great dedication in the past year to the mission of maintaining stability, soundness and vibrancy in our financial sector. To develop our staff’s potential to the fullest and to build high performance teams throughout the organisation, we continue to nurture our staff’s expertise and leadership skills through learningand various developmental programmes. Expertise and Leadership Development

General and Functional Training

The MAS Academy offers a comprehensive suite of programmes, covering functional, general development and leadership courses, designed to add depth and breadth to our staff’s knowledge and skills. All new entry level officers go through a structured broad-based learning programme that equips them with basic competencies in MAS’ key functions. For senior or experienced staff, there are numerous intermediate to advanced level functional training, as well as coaching programmes available.

Regional and External Programmes

Four regional programmes were offered to regionalsupervisors last year – an IT Supervision Workshop,the MAS-Toronto Centre Regional Leadership Programme for Securities Regulators, and two Banking Supervisor Training Programmes. MAS continues to support SEACEN in its training efforts,including the hosting of two SEACEN seminars and providing resource speakers to SEACEN courses.

Leadership Programmes

In the past year, new cohorts of emerging leaders participated in our milestone programmes – the Young Professionals Programme and the People Leadership Programme. Apart from classroom learning, participants also had the opportunity to engage in experiential learning activities as well as peer learning and coaching. Through a series of interrelated modules on topics such as personal mastery, team effectiveness, influencing skills and coaching, these programmes seek to build and honeleadership skills among young professionals and leaders in MAS.

To encourage continuous learning in MAS, a coaching framework has been put in place for supervisors to equip themselves with skills to coach their staff and teams. The objective is to forge engaging relationships, improve work performance and strengthen employee engagement. About 200 of our supervisors have undergone such training, and two batches of leaders have also been specially trained as internal coaches under a Workplace Coach Certification Programme, to provide professional coaching to our staff. MAS Peer Groups

Peer Groups are communities of practice that conduct learning and sharing on developments and trends in specialised subject areas. During the year, MAS Peer Groups organised various activities to help staff keep abreast of developments and trends in a number of areas. For example, the Islamic Finance Peer Group conducted a sharing session on the latest development and initiatives in Islamic Finance, including lessons learnt from an overseas IFSB-FIS seminar on

BUILDING HIGH PERFORMANCE TEAMS AND A STRONG MAS FAMILY

ONE MAS: INTEGRATED AND COHESIVE


Liquidity Risk Management and Stress Testing Standards. A new Peer Group, Futures Thinking, was set up in 2012, to focus on scenario planning. Through the culture of sharing, Peer Groups have helped update MAS staff on the latest developments in various specialist subject areas, and develop deep technical knowledge and competencies in manyareas.

Attachment and Secondment

In addition to the broad training programmes that we provide to all staff, some of our officers were also sent to leading financial institutions and foreign regulatory bodies for short-term attachments to acquire technical expertise andindustry knowledge. MAS also seconds officersto supranational organisations, where they holdkey positions within these organisations for a defined period. These experiences provided our officers the opportunity to keep abreast of evolving trends and developments in the financial sector, and contribute to the process of shaping international developments and standards.

Engaging Staff

MAS continued efforts to engage our staff by conducting our third Employee Engagement

Survey (EES) since 2008, which elicited an encouraging 92% participation rate. The EES was followed by a series of engagement workshops and discussions involving all MAS staff. This EES process highlighted areas both within teams and throughout the organisation where staff engagement can be improved. This consequently allows us to improve staff commitment, productivity and the quality of our work.

Recognition of Staff

The Service Appreciation Award (SAA) recognises and celebrates the loyalty and contributions of our dedicated staff. The awards ceremony was held on 7 August 2012. In all, 177 staff received the SAA for service in MAS ranging from five years to 40 years. Seven staff received the 40-year award. One recipient, Spencer Hsu from the Financial Centre Development Department,remarked “I am delighted to receive the 5-year SAA as it marks a milestone in my time with the organisation. My first 5 years in MAS has been a great time of learning, self-discovery and making new friends, and it was particularly heartening to see my fellow trainee officers receiving the award together as well. I look forward to further opportunities ahead as I continue todevelop within the organisation.”

MAS – An Employer of Choice

MAS continued to be featured as an employer of choice in various surveys. In the 2012 Graduates to Industry (GTI) Global 100 series conducted with a research institution in Europe, MAS came in 19th place among Singapore’s top 100 employers of choice. The 2012 Universum IDEAL Employer Survey saw MAS rated as one of the

top 10 employers that business students consideredto be ideal to work for. MAS was the 6th most favoured government employer of choice in the 2012 Jobs Central Employer of Choice survey. Conducted among undergraduates and fresh graduates, the surveys reveal how attractive an employer is to young entrants to the workforce.

Box 6


National Day Awards

This year, 15 MAS staff were honoured for their contributions and service to the nation. Among the recipients were Deputy Managing Director Teo Swee Lian, who was conferred the Public Administration (Gold Bar) Medal, as well as Assistant Managing Director Andrew Khoo and Executive Director Leong Sing Chiong, who each received the Public Administration (Silver) Medal. We extend our heartiest congratulations to all our National Day Award recipients.

FOSTERING CLOSER TIES

MAS Dinner & Dance 2012

It was a night of glitz and glamour on 6 July 2012 at the Swissotel Ballroom. The theme of the Dinner & Dance was MASmerise and staff were certainly dressed up to the nines to mesmerise one another. One of the highlights was the staff performance showcase. The audience were thrilled to see a different side of their fellow colleagues displaying their hidden talents in singing, dancing and music. Besides the staff performances, guests were entertained by a Michael Jackson impersonator who showed off some slick moves such as the famous moonwalk. The emcee for the night also worked the crowd with his witty jokes and dance moves. The atmosphere was light-hearted with plenty oflaughter shared among colleagues throughout the night.

Inter-Central Bank Games 2012

The 36th Inter-Central Bank Games (ICBG) was held in Yogyakarta, Indonesia. MAS’ athletes took part in the games which was held from 28 September to 1 October 2012. The five competing sports included fishing, 9-ball pool, running, men’s basketball and ladies’ futsal. MAS performed above expectations and produced one of our best performances in history. The fishing team clinched the top spot while both the 9-ball pool team and the running team bagged the silver awards. Men’s basketball and ladies’ futsal came in third and fourth placing respectively. Despite the outstanding achievement, what we valued more were the friendships we have forged both with our colleagues and with our regional counterparts.

ChristMAS 2012

The Christmas food distribution to the visually impaired as well as to households receiving assistance from Government-funded ComCare programmes, was a heart-warming exercise. Staff pledged and donated food items like rice, cooking oil, canned food, biscuits, sachets of

Inter-Central Bank Games 2012 – Mini Cross Country

The ICBG contingent posing “gangnam style” at the picturesque Candi Borobodur


instant beverage, sugar/salt and condiments. Volunteers also stepped forward to deliver to different parts of Singapore the gift packages directly to the 24 families of the visually impaired, registered with the Singapore Association forthe Visually Handicapped. A sizable donation of food items were also transferred to the Boys Brigade’s headquarters to beef up theircollection under the Boys Brigade Share-a-Gift programme. This could only be made possible with all who volunteered their money, time, sweat and trolleys to make this event a meaningful one for the less privileged in our society during theChristmas season.

RAISING PRODUCTIVITY

As part of our on-going efforts to improve work processes and enhance efficiency within the MAS workplace, we have implemented an integrated Human Resource, Finance and Procurement System - the MAS Employee Resource Integration Tool (MERIT). MERIT was launched in phases from late 2012 to March 2013, integrating Human Resource, Finance and Corporate Services Departments’ key work streams and processes to facilitate greater efficiency and approval controls. By having consistent and real time information more readily available, MERIT also empowered MAS managers with better analysis and decision making capabilities in areas such as purchase approvals, staff resource planning, and in the management of training and career development plans of MAS staff. MERIT also provides staff with day-to-day convenience, such as a one-stop self-service portal to carry out a variety of transactions, including viewing and updating personal information, managing training needs, applying leave and submitting claims.

Another example of the MAS-wide initiative to enhance the IT environment and tools for effective collaboration and sharing of information amongst staff is the MAS Integrated Collaborative Environment (MICE). Launched in 2012, MICE is part of MAS’ move towards a “paper-less” environment, leveraging on IT and an enterprise-wide information classification exercise to manage our digital information assets. We have also introduced a series of tools and solutions to improve staff productivity, including mobility access to our enterprise IT resources.

UPHOLD HIGH GOVERNANCE AND OPERATIONAL STANDARDS WITHIN MAS

Procurement Governance and Management

MAS places emphasis on procurement to ensure a transparent, open and fair process. Most of our procurement officers have completed the advanced requirements under the Ministry of Finance Procurement Competency Training Framework in 2012. We have also reviewed our procurement practices and put in place new controls to further enhance our procedures. In addition, workshops and briefings wereconducted annually to promote procurement best practices among MAS staff.

Security and Fire Safety

MAS received the National Safety & Security Watch Group Award from the Singapore Police Force and the Singapore Civil Defence Force for good security, safety, emergency preparedness and training practices and for sharing best practices and enhancing security collaboration efforts with other organisations in Singapore.

Building Services and Infrastructure

In the coming years, MAS will be compacting offices to optimise space usage and to enhance work synergy between functional work units. As part of WOG environmental sustainability effort, the building infrastructures and services will be upgraded by 2015 to meet new building requirements and energy standards.

Risk-Based Audit

The Internal Audit Department (IAD) of MAS completed an extensive programme of risk-based audits across the spectrum of MAS functions and key IT systems to ascertain the adequacy and effectiveness of controls and procedures. These included thematic reviews to assess the corporate governance standards within the organisation. IAD also conducted an extensive review of procurement practices across MAS.

As part of our quality programme, IAD completed an internal Quality Assurance Review which was validated by the auditors from member organisations of the Inter-Statutory Board Quality


Assurance Validation Group. Both the self-assessment and external validation concluded that IAD’s activity, procedures and processes generally conform with the International Standards for the Professional Practice of Internal Auditing, issued by the Institute of Internal Auditors.

ENHANCING MAS’ RISK MANAGEMENT CULTURE, OPERATIONAL RESILIENCE AND CRISIS PREPAREDNESS

During the year, we introduced department self-assessments as a structured process for departments to identify, assess and prioritise their risks, and review the adequacy of controls that are in place. We also revised our information security policies to enhance safeguards for the handling of classified information. To ensure that MAS’ business continuity management (BCM) continues to be effective, we conducted a mobilisation exercise in November 2012 to validate our internal recovery processes. We also introduced an interactive e-learning module,known as the iBCM to deepen staff’s knowledge and awareness of BCM issues and procedures.


FINANCIALSTATEMENTS

Financial Statement Highlights 66

Statement by Directors 64

Auditor’s Report 65

Consolidated Statement of Comprehensive Income 70

Consolidated Balance Sheet 71

Consolidated Statement of Changes in Equity 72

Consolidated Cash Flow Statement 73

Statement of Backing of Currency in Circulation 74

Notes to the Consolidated Financial Statements 75

66 MAS AnnuAl RepoRt 2012/2013

the Authority’s total assets, including the Currency Fund, increased by $21.21 billion to $340.40 billion in the financial year ended 31 March 2013. the Currency Fund’s net external assets grew by 4.5% to $38.81 billion, whilst the currency-in-circulation rose at a faster 9.5%. As a result, the net external asset backing of the currency-in-circulation fell to 121%, from 127% a year ago.

total liabilities also increased by $31.82 billion to $315.87 billion, with the higher currency-in-circulation, as the amounts due to the Singapore Government, MAS Bills, deposits of financial institutions and the currency-in-circulation grew.

Most of the Authority’s assets comprise official foreign reserves, intended for the conduct of the monetary policy and the defence of the Singapore dollar. these are invested in a diversified range of foreign currency assets. During the year, the Singapore dollar appreciated against most currencies, including the Yen, the Sterling pound, the euro and the uS dollar by 13.8%, 6.2%, 5.1% and 1.3% respectively. Following this, the Authority recorded a net loss of $10.61 billion for the year, as the foreign exchange impact from the stronger Singapore dollar exceeded the interest, dividend income and other gains from the foreign assets held. total expenditure decreased from $0.89 billion to $0.82 billion, mainly due to lower investment and interest costs.

For this financial year, there is no contribution to Consolidated Fund, nor return of profits to the Government.

MAS FY2012/2013 FINANCIAL STATEMENT HIGHLIGHTS

MAS AnnuAl RepoRt 2012/2013 67

STATEMENT BY DIrECTorSFoR tHE FINANCIAl yEAR ENDED 31 MARCH 2013

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 70 to 94 are drawn up so as to present fairly the state of affairs of the Authority as at 31 March 2013, 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 SHANMUGArATNAMChairman

rAVI MENoNManaging Director

26 June 2013


INDEPENDENT AUDITor’S rEPorT oN THE AUDIT oF THE FINANCIAL STATEMENTS oF THE MoNETArY AUTHorITY oF SINGAPorEFoR tHE FINANCIAl yEAR ENDED 31 MARCH 2013

the accompanying financial statements of the Monetary Authority of Singapore (the “Authority”), its subsidiary and Currency Fund, set out on pages 70 to 94, have been audited under my direction. these financial statements comprise the consolidated balance sheet as at 31 March 2013, 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 (Chapter 186, 1999 Revised edition) and Currency Act (Chapter 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.


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 2013 and the financial transactions of the Authority and its subsidiary for the financial year ended on that date.

TAN YoKE MENG WILLIEAuDItoR-GeneRAlSInGApoRe

27 June 2013


CoNSoLIDATED STATEMENT oF CoMPrEHENSIVE INCoME

General Reserve Fund Currency Fund total

For the year ended 31 March Note 2013 2012 2013 2012 2013 2012

in $ millions

Income/(loss) from Foreign operations [after transfers to/from provisions] 4 (10,297) 3,046 225 329 (10,072) 3,375

Income from Domestic and other operations 5 268 276 1 – 269 276

non-operating Income 6 9 10 2 – 11 10

total Income/(loss) [after transfers to/ from provisions] (10,020) 3,332 228 329 (9,792) 3,661

less:

Investment, Interest and other expenses 7 453 560 118 89 571 649

personnel expenditure 8 183 177 – – 183 177

General and Administrative expenditure 9 50 47 – – 50 47

Depreciation/Amortisation 17 17 – – 17 17

total Expenditure 703 801 118 89 821 890

Profit/(loss) for the year [after transfers to/ from provisions] (10,723) 2,531 110 240 (10,613) 2,771

less:

Contribution to Consolidated Fund 19.2 – – – – – –

Net Profit/(loss) and total Comprehensive Income/(loss) for the year [after transfers to/from provisions] (10,723) 2,531 110 240 (10,613) 2,771

the accompanying notes form an integral part of these financial statements.


As at 31 March Note 2013 2012

in $ millions

CAPItAl AND RESERVES

Issued and paid-up Capital 10 25,000 25,000

General Reserve Fund 11 (7,082) 2,481

Currency Fund Reserves 12 6,621 7,671

24,539 35,152

Represented by:

ASSEtS

Cash and Bank Balances 858 860

Singapore Dollar Securities 13 7,115 7,011

Foreign Financial Assets 14 321,182 305,230

Gold 262 266

other Assets 15 10,816 5,666

property and other Fixed Assets 16 172 167

340,405 319,200

less:

lIABIlItIES

Currency in Circulation 31,566 28,826

Deposits of Financial Institutions 17 21,657 17,981

MAS Bills 18 41,576 17,993

provisions and other liabilities 18 56,968 69,643

Amounts Due to Singapore Government 19 164,099 149,605

315,866 284,048

NEt ASSEtS oF tHE AUtHoRIty 24,539 35,152

NEt ASSEtS oF FINANCIAl SECtoR DEVEloPMENt FUND 20 1,154 1,090


CoNSoLIDATED BALANCE SHEET


in $ millions

Issued and Paid-upCapital

General Reserve

Fund

Currency Fund

Reserves total

Balance as at 1 April 2011 17,000 41 7,340 24,381

Increase in Issued and paid-up Capital during the Year 8,000 – – 8,000

total Comprehensive Income/(loss) for the Year (after transfers to/from provisions) – 2,531 240 2,771

transfer of Reserves to Currency Fund – (91) 91 –

Balance as at 31 March 2012 25,000 2,481 7,671 35,152

total Comprehensive Income/(loss) for the Year (after transfers to/from provisions) – (10,723) 110 (10,613)

transfer of Reserves from Currency Fund – 1,160 (1,160) –

Balance as at 31 March 2013 25,000 (7,082) 6,621 24,539


CoNSoLIDATED STATEMENT oF CHANGES IN EQUITY


For the year ended 31 March 2013 2012

in $ millions

Cash Flows from operating Activities

profit/(loss) for the Year (after transfers to/from provisions) (10,613) 2,771

Adjustments for:

Depreciation/Amortisation of Fixed Assets and other Assets

17 17

profit/(loss) before Working Capital Changes (10,596) 2,788

(Increase)/Decrease in

Singapore Dollar Securities (104) 263

Foreign Financial Assets (15,952) (17,508)

Gold 4 1

other Assets (5,150) (2,206)

Increase/(Decrease) in

Deposits of Financial Institutions 3,676 416

MAS Bills 23,583 17,993

provisions and other liabilities (12,678) (32,554)

Amounts due to Singapore Government (excluding Contribution to Consolidated Fund and Return of profit to Singapore Government) 14,494 19,931

Net Cash used in operating Activities (2,723) (10,876)

Cash Flows from Investing Activities

purchase of Fixed Assets (19) (15)

Net Cash used in Investing Activities (19) (15)

Cash Flows from Financing Activities

Increase in Issued and paid-up Capital – 8,000

Increase in Currency in Circulation 2,740 2,886

Net Cash from Financing Activities 2,740 10,886

Net Decrease in Cash and Bank Balances (2) (5)

Cash and Bank Balances as at beginning of the year 860 865

Cash and Bank Balances as at end of the year 858 860


CoNSoLIDATED CASH FLoW STATEMENT


the Currency Fund is established under Section 21 of the Currency Act (Chapter 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 Note 2013 2012

in $ millions

the value of external Assets and the Currency in Circulation are:

Currency in Circulation 12.2 31,566 28,826

external Assets 12.2 38,805 37,147

less:

provisions and other liabilities 12.2 618 650

net Assets 38,187 36,497


STATEMENT oF BACKING oF CUrrENCY IN CIrCULATIoN


NoTES To THE CoNSoLIDATED FINANCIAL STATEMENTSFoR tHE yEAR ENDED 31 MARCH 2013

these notes form an integral part of and should be read in conjunction with the accompanying consolidated financial statements.

1 GENERAl

1.1 the Monetary Authority of Singapore (the “Authority”) is a statutory board established in Singapore under the Monetary Authority of Singapore Act (Chapter 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.

2 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.

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 (Chapter 186, 1999 Revised edition), Currency Act (Chapter 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) Amendments to FRSs applicable in the current financial year did not have a significant impact on the Authority’s consolidated financial statements.



c) 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.

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) A subsidiary is an entity that the Authority, directly or indirectly, has power to govern the financial and operating policies of, in order to obtain benefits from its activities. It is generally accompanied by a shareholding of more than 50% of voting rights. potential voting rights that are exercisable or convertible are considered when determining whether an entity is considered a subsidiary.

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.

3.4 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.

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

Foreign financial assets 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. 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, except for forwards and currency swaps which are valued on a portfolio basis.



3.11 Repurchase and Reverse Repurchase Agreements (“Repos” and “Reverse Repos”)

Reverse repos are treated as collaterised borrowing 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 collaterised 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) 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:

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 3 to 5 years and other equipment

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.

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 FRoM DoMEStIC AND otHER oPERAtIoNS

Income from domestic and other operations includes mainly interest and write-back of/additional provision for diminution in value of Singapore Dollar securities, 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.

6 NoN-oPERAtING INCoME

non-operating income includes rental and carpark income, liquidated damages and management service fees.



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 2013 2012

Salaries 158 154

employer’s Contribution to the Central provident Fund 15 13

training and personnel Development 4 4

Staff Benefits 3 3

the Minister-in-charge of the Authority is not paid a salary by the Authority. Directors’ fees for the year totalled $0.12 million (2012: $0.10 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:


Salaries and other Short-term employee Benefits 18 19

other long-term employee Benefits 3 3

post-employment benefits of $0.6 million (2012: $0.5 million) were also provided to key management personnel.

executive Directors, Department Heads and above, are considered as key management personnel for

this purpose.



9 GENERAl AND ADMINIStRAtIVE ExPENDItURE

this includes the following:


Information technology 11 11

It operating lease Charges 4 2

Information Services 4 4

official trips and Conferences 4 4

Building and Mechanical and electrical Maintenance 3 3

Consultant and other Advisers’ Fees 2 –

property tax 2 2

Audit Fee 1 1

10 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 (Chapter 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 (Chapter 186, 1999 Revised edition).

11 GENERAl RESERVE FUND

the General Reserve Fund is established under Section 6(1) of the Monetary Authority of Singapore Act (Chapter 186, 1999 Revised edition).



12 CURRENCy FUND RESERVES

12.1 the Currency Fund, established under Section 21 of the Currency Act (Chapter 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 2013 2012

External Assets

Gold 205 208

Foreign Investments 14.1(a) 38,600 36,939

38,805 37,147

less:

liabilities

Active Currency in Circulation 30,724 27,977

Currency Held by the Authority 842 849

Currency in Circulation 31,566 28,826

provisions and other liabilities 618 650

32,184 29,476

Currency Fund Reserves 6,621 7,671

13 SINGAPoRE DollAR SECURItIES

Singapore Dollar Securities comprise:


Singapore Government Bonds 7,105 7,011

Singapore Dollar Corporate Bonds 10 –

7,115 7,011



14 FoREIGN FINANCIAl ASSEtS

14.1(a) these comprise the following:

General Reserve Fund Currency Fund total

in $ millions Note 2013 2012 2013 2012 2013 2012

Foreign Investments

Bank Balances and Deposits 49,842 47,399 2,681 3,441 52,523 50,840

Securities (including treasury Bills, Bonds and equities) 237,631 224,015 37,644 33,896 275,275 257,911

other Foreign Investments 9,502 9,217 1,289 1,467 10,791 10,684

International Monetary Fund Assets (see note 14.2)

Reserve tranche 881 920 – – 881 920

Special Drawing Rights 1,622 1,691 – – 1,622 1,691

loans under new Arrangements to Borrow 22.1(d) 292 191 – – 292 191

poverty Reduction and Growth Facility – Heavily Indebted poor Countries 8 8 – – 8 8

Shareholding in Bank for International Settlements (BIS) (see note 14.3) 96 96 – – 96 96

299,874 283,537 41,614 38,804 341,488 322,341

Foreign Currency liabilities (17,292) (15,246) (3,014) (1,865) (20,306) (17,111)

Net Foreign Financial Assets 282,582 268,291 38,600 36,939 321,182 305,230



14.1(b) During the financial year ended 31 March 2013, the Authority recognised cash collateral received in connection with financial transactions as an asset in “Bank Balances and Deposits” and a payable in “Foreign Currency liabilities”. Cash collateral pledged are derecognised from cash in “Bank Balances and Deposits” and recorded as a receivable in “other Foreign Investments”. prior year’s comparatives have been restated to include the adjustments outlined below:

GeneralReserve

FundCurrency

Fund total

in $ millions 2012 2012 2012

Foreign Investments

Bank Balances and Deposits 6,090 1,512 7,602

other Foreign Investments 178 22 200

6,268 1,534 7,802

Foreign Currency liabilities (6,268) (1,534) (7,802)

Net Foreign Financial Assets – – –

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 2013 is SDR4.0 million [$7.5 million] (31 March 2012: SDR4.0 million [$7.9 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)

the Authority’s shareholding in the BIS comprises the 25% paid-up value of 4,285 (31 March 2012: 4,285) shares with a nominal value of SDR5,000 ($9,290) each.

15 otHER ASSEtS

these comprise the following:


loans, Deposits and other Receivables 3,881 3,437

Receivable from MAS Bills Issued 4,398 –

Repurchase Agreements with Singapore Government 2,537 2,229

10,816 5,666



16 PRoPERty AND otHER FIxED ASSEtS

in $ millionsleasehold

land Buildings Building

Improvements

Computer Hardware

and Software

Furniture,Fixtures,

MotorVehicles

and other

Equipment Work-in-Progress total

CoSt

As at 1.4.2011 48 171 93 84 23 5 424

Additions – – 1 5 1 14 21

Disposals – – – (4) – – (4)

transfers – – – – 2 (2) –

As at 31.3.2012 48 171 94 85 26 17 441

ACCUMUlAtED DEPRECIAtIoN

As at 1.4.2011 14 75 82 68 22 – 261

Disposals – – – (4) – – (4)

Depreciation Charge 1 4 3 7 2 – 17

As at 31.3.2012 15 79 85 71 24 – 274

NEt BooK VAlUE AS At 31.3.2012 33 92 9 14 2 17 167

CoSt

As at 1.4.2012 48 171 94 85 26 17 441

Additions – – – 2 1 19 22

Disposals – – – (1) – – (1)

transfers – – – 25 1 (26) –

As at 31.3.2013 48 171 94 111 28 10 462

ACCUMUlAtED DEPRECIAtIoN

As at 1.4.2012 15 79 85 71 24 – 274

Disposals – – – (1) – – (1)

Depreciation Charge 1 4 3 8 1 – 17

As at 31.3.2013 16 83 88 78 25 – 290

NEt BooK VAlUE AS At 31.3.2013 32 88 6 33 3 10 172



17 DEPoSItS oF FINANCIAl INStItUtIoNS


Banks 21,243 17,668

Finance Companies 323 266

Securities Companies 7 6

21,573 17,940

International Financial Institutions 34 34

Foreign Central Banks and others 50 7

21,657 17,981

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 (Chapter 19, 2008 Revised edition) and the Finance Companies Act (Chapter 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 expanded its money market instruments by issuing its own bills, with short-term maturities ranging up to 3 months, during the financial year ended 31 March 2013.

18.2 provisions have been made for contingencies under Section 6(2) of the Monetary Authority of Singapore Act (Chapter 186, 1999 Revised edition). other liabilities include borrowings from banks, borrowings under reverse repurchase agreements, the Authority’s allocations of Special Drawing Rights in IMF, creditors, Sukuk payable, accounts payable and accruals.

18.3 the Authority’s allocations of Special Drawing Rights in IMF amounting to $1,383 million as at 31 March 2013 (31 March 2012: $1,449 million) is included in “provisions and other liabilities”.

18.4 During the financial year ended 31 March 2013, SSpl, a wholly-owned subsidiary of the Authority, issued $100 million (2012: $80 million) Sukuk trust certificates with one year maturity and an income distribution rate of 0.29% (2012: 0.30%) 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.



19 AMoUNtS DUE to SINGAPoRE GoVERNMENt

19.1 the amounts due to the Singapore Government comprise the following:


Amounts due to Singapore Government, arising from Repurchase Agreements

2,537 2,229

Balances and Deposits of Singapore Government 161,562 147,376

164,099 149,605

19.2 Contribution to the Consolidated Fund is in accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act (Chapter 319A, 2004 Revised edition) and is based on 17% (2012: 17%) of the net profit for the year. In the financial year ended 31 March 2013, no contribution to the Consolidated Fund (2012: nil) is payable as the Authority recorded a net loss for the year.

20 FINANCIAl SECtoR DEVEloPMENt FUND

20.1 the Financial Sector Development Fund (hereinafter called the Fund) is established under Section 30A of the Monetary Authority of Singapore Act (Chapter 186, 1999 Revised edition). It is controlled and administered by the Authority. the Authority provides administrative and accounting support to the Fund. the Fund shall be used for the objects and purposes set out in Section 30B of the Act.



20.2 the financial statements of the Fund have been prepared in accordance with the provisions of the Monetary Authority of Singapore Act (Chapter 186, 1999 Revised edition) and the Singapore Financial Reporting Standards. the assets and liabilities of the Fund as at 31 March are as follows:

in $ thousands Note 2013 2012

ACCUMUlAtED FUND

Capital Account 471,635 471,635

Accumulated Surplus 681,934 618,765

1,153,569 1,090,400

Represented by:

ASSEtS

Bank Balances and Deposits 20.4 241,206 286,573

Financial Assets at Fair Value through profit or loss 952,426 838,774

loans and Receivables 21,515 29,550

1,215,147 1,154,897

less:

lIABIlItIES

Financial liabilities at Fair Value through profit or loss 2,360 1,653

Accruals and other liabilities 59,218 62,844

61,578 64,497

NEt ASSEtS oF tHE FUND 1,153,569 1,090,400



20.3 the financial results of the Fund are as follows:

in $ thousands 2013 2012

Interest Income 18,853 25,146

Dividend Income 70,402 69,186

Gain from Financial Instruments at Fair Value through profit or loss 40,782 28,303

Foreign exchange loss (30,707) (11,885)

other Income 293 650

total Income 99,623 111,400

less:

Investment expenses 4,859 3,455

Grants 31,595 43,894

total expenditure 36,454 47,349

net Surplus and total Comprehensive Income for the Year 63,169 64,051

20.4 Bank Balances and Deposits

Included in bank balances and deposits of $241.2 million as at 31 March 2013 is uS$50.0 million ($62.0 million) (31 March 2012: $62.9 million) held by Singapore exchange ltd, in trust for the Fund-supported market infrastructure project. the Fund reserves the right, to vary or change the amount for the project or withdraw any part of or the entire amount for this project, and recover in full, or part, any moneys disbursed if specified terms and conditions, including satisfying the project’s key performance indicators, are not met or upon the occurrence of specified events.

20.5 Related Party transactions

a) During the financial year, the Fund maintained a non-interest bearing current account with the Authority to facilitate grant disbursements. the Fund’s current account balance with the Authority at 31 March 2013 was $6.9 million (31 March 2012: nil).

b) the Fund also placed deposits with the Authority, in the ordinary course of business and at arm’s length, earning interest income disclosed below:

in $ thousands 2013 2012

Interest Income 444 360

c) the Fund’s deposit balance with the Authority at 31 March 2013 was $118.0 million (31 March 2012: $149.0 million).

20.6 the notes to the assets and liabilities and financial results of the Fund are available on the Authority’s website at http://www.mas.gov.sg.



21 StAtUtoRy DEPoSItS oF INSURANCE CoMPANIES, REMIttANCE lICENSEES AND CAPItAl MARKEtS SERVICES lICENSEES the following 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 (Chapter 142, 2002 Revised edition), the Money-Changing and Remittance Businesses Act (Chapter 187, 2008 Revised edition) and the Securities and Futures Act (Chapter 289, 2006 Revised edition) respectively, and in the events specified, dealt with accordingly under the respective Acts.


Insurance Companies

Fixed Deposits 287 184

Banker’s Guarantees – 2

287 186

Remittance licensees

Banker’s Guarantees 19 19

Capital Markets Services licensees

Banker’s Guarantees 56 55

22 CoMMItMENtS

22.1 International Monetary Fund (IMF)

a) the Authority has an obligation to pay $1,791 million as at 31 March 2013 (31 March 2012: $1,863 million) which represents the unpaid portion of the Singapore quota due to IMF under Section 4 of Article III of the Articles of Agreement.

b) 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. As at 31 March 2013, Singapore has accepted its full quota increase of SDR2,484 million ($4,615 million).

c) on 20 April 2012, the Authority announced that Singapore would make a bilateral contingent

loan of uS$4 billion ($5 billion) to the IMF as part of the broader international effort to boost IMF’s resources and strengthen global economic and financial stability.

d) 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. During the financial year ended 31 March 2013, the Authority granted loans under the nAB totalling SDR157 million ($292 million) (31 March 2012: SDR98 million [$191 million]). the remaining undrawn credit is SDR1,120 million ($2,080 million) as at 31 March 2013 (31 March 2012: SDR1,179 million [$2,296 million]).



e) During the financial year ended 31 March 2013, the Authority received SDR4.1 million ($8 million), being Singapore’s share of the distribution of SDR700 million ($1,300 million) by IMF arising from the profits made in the IMF’s gold sales. Subsequent to 31 March 2013, the Authority may also receive about SDR10 million ($19 million) from a second distribution of SDR1,750 million ($3,251 million) expected to be made by the IMF if it receives assurances, similar to the first distribution, from members that they will provide new poverty Reduction and Growth trust (“pRGt”) subsidy contributions totalling at least 90% of the distributed amount. For both distributions, Singapore has pledged to contribute its share to the pRGt subsidy account, subject to legislative amendments.

22.2 Bank for International Settlements (BIS)

the Authority has a commitment, amounting to SDR16.1 million ($29.9 million) as at 31 March 2013 (31 March 2012: SDR16.1 million [$31.3 million]), in respect of the uncalled portion of its shareholding in the BIS.

22.3 Repurchase Agreements with Central Banks and Monetary Authority

the Authority has entered into bilateral repurchase agreements totalling uS$5,500 million ($6,822 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 2013, there was no request for liquidity assistance from any counterpart.

22.4 Currency Swap Arrangements with Central Banks and Monetary Authority

a) the Authority is a participant in the multilateral ASeAn Swap Arrangement (ASA) together with other ASeAn central banks and a monetary authority to provide short-term foreign exchange liquidity support for member countries that may experience balance of payments difficulties. under this agreement, the Authority’s commitment is uS$300 million ($372 million). In September 2011, the ASA was renewed for an additional two years up to 16 november 2013.

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 currency swap transactions, to address balance of payments and short-term liquidity difficulties in the region, and supplements existing international financial arrangements. on 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 ($11,292 million) and the Authority can swap Singapore dollars for uS dollars up to 2.5 times Singapore’s commitment.

c) the Authority established a 3-year China-Singapore currency swap arrangement of CnY150 billion ($30 billion) with the people’s Bank of China on 23 July 2010, to promote bilateral trade and direct investment for the economic development of the two countries. on 8 March 2013, the Authority renewed and expanded the swap facility to CnY300 billion ($60 billion). this CnY/SGD swap facility allows the Authority to provide Chinese Yuan liquidity to financial institutions for trade and financial stability purposes.

d) For the financial year ended 31 March 2013, there was no request made or drawdown of any of the above currency swap arrangements, (a) to (c).



22.5 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, in the event a Deposit Insurance Scheme member fails and liquidity is needed for compensation payments to insured depositors. For the financial year ended 31 March 2013, there was no request and drawdown on the facility.

22.6 Capital Expenditure Commitments

Capital expenditure not provided for in the consolidated financial statements is as follows:


Amount contracted for 14 18

22.7 leases

a) Future minimum lease payments under non-cancellable operating leases are as follows:


less than 1 year 1 1

1 to 5 years 2 2

More than 5 years – 1

3 4

b) Future minimum lease rental receipts under non-cancellable operating leases are as follows:


less than 1 year 6 6

1 to 5 years 6 4

12 10

23 FINANCIAl RISK MANAGEMENt

23.1 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.

23.2 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 compliance monitoring of the portfolios in accordance with the stipulated investment guidelines.



23.3 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. the Authority manages interest rate risks by setting duration limits on its investments.

iii) 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.

b) 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 currencies, and the establishment of investment risk tolerance and controls at both the aggregate and individual portfolio levels.

23.4 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, custodian and issuer credit risk.

b) the Authority’s credit risks are managed by transacting with well-rated entities within assigned limits. Credit risks are also mitigated by diversifying credit exposures across counterparties, custodians 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.

23.5 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.

23.6 liquidity Risk

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.



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 on or after 1 January 2013 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 2014 FRS 110 Consolidated Financial Statements FRS 110 establishes control as the basis for determining which entities are consolidated. It provides a single model to be applied in the control analysis for all investees, including special purpose entities that are currently within the scope of Int FRS 12 Consolidation – Special purpose entities. Control exists under FRS 110 when the investor has power, exposure to variable returns and the ability to use that power to affect its return from the investee. FRS 112 Disclosure of Interests in other entities FRS 112 combines the existing disclosure requirements in a single disclosure standard. It requires the disclosure of summarised financial information about each subsidiary that has material non-controlling interests as well as associate and joint venture that is material to the reporting entity. It also sets out new disclosure requirements such as financial or other support provided to consolidated and unconsolidated structured entities, and financial information about unconsolidated structured entities that the reporting entity had sponsored.

26 AUtHoRISAtIoN oF CoNSolIDAtED FINANCIAl StAtEMENtS

the consolidated financial statements for the year ended 31 March 2013 were authorised by the Board of Directors for issuance and signed by Chairman and Managing Director on 26 June 2013.



KeY eConoMIC AnDFInAnCIAl StAtIStICS


KEY ECoNoMIC AND FINANCIAL STATISTICS

2008 2009 2010 2011 2012

National Income Aggregates

Gross Domestic product

At Current Market prices (S$m) 269,658.1 274,655.3 315,921.2 334,092.7 345,560.5

Growth Rate (% change) 0.6 1.9 15.0 5.8 3.4

At 2005 Market prices (S$m) 251,538.9 249,559.8 286,446.7 301,228.4 305,201.5

Growth Rate (% change) 1.7 -0.8 14.8 5.2 1.3

Gross national Income

At Current Market prices (S$m) 257,366.9 259,942.7 314,389.2 331,346.7 341,640.9

Growth Rate (% change) -0.8 1.0 20.9 5.4 3.1

labour Force

unemployment Rate (%) 2.2 3.0 2.2 2.0 2.0

productivity Growth (% change) -7.3 -3.4 11.1 1.3 -2.6

Changes in employment (‘000) 221.6 37.6 115.9 122.6 129.1

Average Monthly earnings (% change) 5.4 -2.6 5.6 6.0 2.3

unit labour Cost (% change) 4.2 0.8 -2.6 3.5 4.1

Savings and Investment

Gross national Savings (S$m) 119,896.5 117,249.8 152,226.6 156,296.9 157,575.9

As % of GnI 46.6 45.1 48.4 47.2 46.1

Gross Domestic Capital Formation (S$m) 79,094.3 68,549.7 67,654.3 74,135.2 93,296.0

As % of GnI 30.7 26.4 21.5 22.4 27.3

Balance of Payments (S$m)

Goods Balance 60,561.7 71,721.1 90,005.9 91,395.9 76,127.1

exports of Goods 501,615.1 419,694.1 505,879.1 546,103.2 544,587.5

Growth Rate (% change) 6.5 -16.3 20.5 8.0 -0.3

Imports of Goods 441,053.4 347,973.0 415,873.2 454,707.3 468,460.4


Services and other Balances -19,759.5 -23,021.0 -5,433.6 -9,234.2 -11,847.2

Current Account Balance 40,802.2 48,700.1 84,572.3 82,161.7 64,279.9

As % of GnI 15.9 18.7 26.9 24.8 18.8

Capital and Financial Account Balance -22,986.9 -35,737.0 -30,505.9 -55,600.3 -35,586.3

Balancing Item 715.8 3,493.1 3,414.1 -5,073.7 3,912.3

overall Balance 18,531.1 16,456.2 57,480.5 21,487.7 32,605.9

official Foreign Reserves 250,346.0 263,955.4 288,954.1 308,403.2 316,744.2

Inflation (% change)

Consumer price Index 6.6 0.6 2.8 5.2 4.6

GDp Deflator -1.1 2.7 0.2 0.6 2.1

Monetary Aggregates (% change)

M1 18.4 23.5 20.3 16.1 7.7

M2 12.0 11.3 8.6 10.0 7.2

M3 11.6 10.6 8.3 10.1 7.6


2008 2009 2010 2011 2012

Interest Rates (period average, % per annum)

prime lending Rate 5.38 5.38 5.38 5.38 5.38

Banks’ 3-month Fixed Deposit Rate 0.42 0.29 0.21 0.17 0.14

Banks’ 3-month Domestic Interbank Rate 1.32 0.70 0.57 0.41 0.38

3-month uS$ SIBoR 2.93 0.70 0.35 0.34 0.43

Exchange Rates (period average, S$ per)

uS Dollar 1.4148 1.4545 1.3635 1.2579 1.2497

pound Sterling 2.6162 2.2737 2.1073 2.0161 1.9803

euro 2.0771 2.0242 1.8095 1.7495 1.6071

100 Japanese Yen 1.3738 1.5562 1.5543 1.5780 1.5672

Malaysian Ringgit 0.4247 0.4126 0.4234 0.4111 0.4046

Banking and Finance

Commercial Banks’ Assets/liabilities (S$m) 668,298.4 706,814.2 781,607.4 855,811.5 911,000.4

Growth Rate (% change) 14.7 5.8 10.6 9.5 6.4

Finance Companies’ Assets/liabilities (S$m) 12,586.4 11,691.9 11,523.6 12,165.3 14,967.5

Growth Rate (% change) -1.5 -7.1 -1.4 5.6 23.0

Merchant Banks’ Assets/liabilities (S$m) 72,602.3 76,354.4 89,760.3 87,851.0 92,411.0

Growth Rate (% change) -18.5 5.2 17.6 -2.1 5.2

Asian Currency units’ Assets/liabilities (uS$m) 912,739.4 869,399.6 971,299.4 1,019,532.8 1,093,263.8


Insurance

life Insurers’ Assets/liabilities (S$m) 99,985.7 119,895.5 131,903.7 133,905.4 148,592.5

Growth Rate (% change) -11.1 19.9 10.0 1.5 11.0

General Insurers’ Assets/liabilities (S$m) 15,062.0 15,905.8 17,431.6 27,209.4 26,267.6

Growth Rate (% change) -7.7 5.6 9.6 56.1 -3.5

CPF

excess of Contributions over Withdrawals (S$m) 9,265.1 9,404.4 12,374.2 14,184.8 14,321.6

Domestic Capital Market

net Funds Raised in Domestic Capital Market (S$m) 42,859.4 56,566.5 61,221.5 82,763.6 78,664.9

StAtIStICAl Annex

A. MoNEtARy StAtIStICS

A1. Money Supply 98

A2. official Foreign Reserves 99

A3. Exchange Rates 100

A4. Domestic Interest Rates 101

B. FINANCIAl StRUCtURE

B1. Number of Financial Institutions

in Singapore 102

C. CoMMERCIAl BANKS

C1. Assets and liabilities 104

C2. loans and Advances by

Industrial Classification 105

C3. types of loans and Advances to

Non-Bank Customers 106

C4. types of Deposits including S$NCDs 107

C5. liquidity Position 108

D. FINANCE CoMPANIES

D1. Assets and liabilities 109

E. MERCHANt BANKS

E1. Consolidated Assets and liabilities 110

E2. Assets and liabilities of

Domestic Unit operations 111

F. INSURANCE INDUStRy

F1. Assets and Premiums 112

G. NoN-BANK FINANCIAl INStItUtIoNS

G1. Central Provident Fund Board 113

H. DoMEStIC CAPItAl MARKEt

H1. Net Funds Raised in the

Domestic Capital Market 114

I. ASIAN DollAR MARKEt

I1. Assets and liabilities 115

I2. Maturity transformation by

Asian Currency Units 116


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Mon

ey S

upp

ly (M

1)44

,162

.346

,085

.952

,242

.663

,938

.675

,703

.893

,472

.111

2,48

7.0

130,

591.

914

0,70

9.1

148,

864.

4

Cur

renc

y in

act

ive

circ

ulat

ion 1

13,6

94.0

14,5

84.5

15,2

84.7

16,6

68.5

18,9

97.4

20,2

16.5

22,2

99.5

24,6

90.3

26,3

61.3

27,8

68.1

Dem

and

depo

sits

30,4

68.3

31,5

01.4

36,9

57.9

47,2

70.1

56,7

06.4

73,2

55.6

90,1

87.5

105,

901.

611

4,34

7.8

120,

996.

3

Qua

si-m

oney

162,

815.

617

3,71

2.4

210,

127.

223

3,62

0.3

257,

707.

327

7,73

5.8

290,

609.

131

2,76

6.2

334,

683.

434

3,39

7.3

Fixe

d de

posi

ts93

,360

.210

7,71

4.3

141,

619.

415

1,73

1.7

155,

121.

915

6,73

1.1

154,

417.

316

0,69

9.6

175,

270.

817

5,74

5.8

Sav

ings

and

oth

er d

epos

its68

,940

.465

,588

.968

,287

.081

,822

.910

2,56

7.4

121,

004.

713

6,17

1.8

151,

901.

615

9,32

2.4

167,

534.

7

S$n

CD

s51

5.0

409.

222

0.8

65.7

18.0

0.0

20.0

165.

090

.211

6.8

Mon

ey S

upp

ly (M

2)20

6,97

7.9

219,

798.

326

2,36

9.8

297,

558.

933

3,41

1.1

371,

207.

940

3,09

6.1

443,

358.

147

5,39

2.5

492,

261.

7

net

dep

osits

with

fin

ance

com

pani

es5,

204.

85,

901.

36,

379.

39,

196.

08,

976.

47,

318.

17,

013.

28,

308.

210

,522

.910

,822

.9

Mon

ey S

upp

ly (M

3)21

2,18

2.7

225,

699.

626

8,74

9.1

306,

754.

934

2,38

7.5

378,

526.

041

0,10

9.3

451,

666.

348

5,91

5.4

503,

084.

6

1Fi

gure

s ex

clud

e co

mm

emor

ativ

e, n

umis

mat

ic a

nd b

ullio

n co

ins

issu

ed b

y th

e M

onet

ary

Aut

horit

y of

Sin

gapo

re a

nd c

ash

held

by

com

mer

cial

ban

ks a

nd o

ther

fina

ncia

l ins

titut

ions

. th

e B

oard

of

Com

mis

sion

ers

of C

urre

ncy,

S

inga

pore

, mer

ged

with

the

Mon

etar

y A

utho

rity

of S

inga

pore

in o

ctob

er 2

002.

Mo

NE

TAr

Y S

TAT

IST

ICS

: Mo

neY

Su

pp

lYA

.1


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

tota

l For

eign

Res

erve

s18

3,46

4.0

192,

813.

020

8,99

1.8

234,

545.

625

0,34

6.0

263,

955.

428

8,95

4.1

308,

403.

231

6,74

4.2

320,

224.

9

Gol

d &

For

eign

exc

hang

e18

2,27

6.8

192,

044.

620

8,30

4.2

233,

913.

124

9,54

6.1

261,

374.

628

6,56

3.3

305,

589.

531

3,98

7.3

317,

462.

5

Res

erve

pos

ition

in th

e IM

F71

2.4

291.

220

0.1

128.

625

5.8

375.

542

1.0

1,08

0.8

1,11

5.8

1,14

0.6

Spe

cial

Dra

win

g R

ight

s (S

DR

s)47

4.8

477.

248

7.5

503.

954

4.1

2,20

5.3

1,96

9.8

1,73

2.9

1,64

1.1

1,62

1.8

tota

l For

eign

Res

erve

s (u

S$

milli

on)

112,

574.

911

6,17

2.6

136,

260.

916

2,95

6.8

174,

196.

318

7,80

9.1

225,

754.

223

7,73

7.0

259,

307.

125

8,18

6.3

1W

ith e

ffect

from

May

199

9, th

e bo

ok v

alue

of f

orei

gn re

serv

e as

sets

are

tran

slat

ed a

t mar

ket e

xcha

nge

rate

s pr

evai

ling

at th

e en

d of

eac

h re

porti

ng m

onth

.

Mo

NE

TAr

Y S

TAT

IST

ICS

: oFF

ICIA

l Fo

ReI

Gn

ReS

eRVe

S 1

A.2


S

$ P

er F

orei

gn C

urre

ncy

Per

iod

Ave

rage

2004

2005

2006

2007

2008

2009

2010

2011

2012

1st

Qtr

2013

uS

Dol

lar

1.69

031.

6646

1.58

891.

5071

1.41

481.

4545

1.36

351.

2579

1.24

971.

2377

100

Japa

nese

Yen

1.56

341.

5138

1.36

671.

2806

1.37

381.

5562

1.55

431.

5780

1.56

721.

3416

euro

2.10

082.

0719

1.99

522.

0638

2.07

712.

0242

1.80

951.

7495

1.60

711.

6346

pou

nd S

terli

ng3.

0963

3.02

902.

9261

3.01

612.

6162

2.27

372.

1073

2.01

611.

9803

1.91

94

Sw

iss

Fran

c1.

3609

1.33

831.

2684

1.25

631.

3090

1.34

071.

3089

1.42

011.

3332

1.33

01

Aus

tralia

n D

olla

r1.

2443

1.26

861.

1967

1.26

241.

2016

1.14

731.

2524

1.29

711.

2940

1.28

52

100

Kor

ean

Won

0.14

770.

1625

0.16

640.

1622

0.13

060.

1143

0.11

800.

1135

0.11

090.

1141

100

new

tai

wan

Dol

lar

5.05

845.

1768

4.88

704.

5870

4.48

744.

4023

4.32

924.

2798

4.22

624.

1990

Hon

g K

ong

Dol

lar

0.21

700.

2140

0.20

450.

1932

0.18

170.

1876

0.17

550.

1616

0.16

110.

1596

Mal

aysi

an R

ingg

it0.

4448

0.43

950.

4331

0.43

840.

4247

0.41

260.

4234

0.41

110.

4046

0.40

16

thai

Bah

t0.

0420

0.04

140.

0419

0.04

360.

0424

0.04

240.

0430

0.04

130.

0402

0.04

15

100

Indo

nesi

an R

upia

h0.

0189

0.01

720.

0173

0.01

650.

0147

0.01

400.

0150

0.01

430.

0133

0.01

28

not

e: C

urre

ncie

s qu

oted

are

thos

e fre

quen

tly re

ques

ted

from

the

Aut

horit

y.

Mo

NE

TAr

Y S

TAT

IST

ICS

: exC

HA

nG

e R

AteS

A.3


Per

Cen

t P

er A

nnum

Per

iod

Ave

rage

2004

2005

2006

2007

2008

2009

2010

2011

2012

1st

Qtr

2013

Ban

ks 1

prim

e le

ndin

g R

ate

5.30

5.30

5.31

5.33

5.38

5.38

5.38

5.38

5.38

5.38

Fixe

d D

epos

it R

ate

3-m

onth

0.40

0.44

0.57

0.53

0.42

0.29

0.21

0.17

0.14

0.14

6-m

onth

0.51

0.55

0.67

0.64

0.54

0.37

0.30

0.24

0.19

0.20

12-m

onth

0.71

0.76

0.88

0.85

0.73

0.56

0.48

0.40

0.30

0.32

Sav

ings

Dep

osit

Rat

e0.

230.

240.

260.

250.

230.

180.

140.

120.

110.

11

Fina

nce

Com

pan

ies 2

Fixe

d D

epos

it R

ate

3-m

onth

0.48

0.66

0.94

0.75

0.49

0.29

0.22

0.16

0.16

0.20

6-m

onth

0.69

0.83

1.39

1.09

0.59

0.33

0.27

0.23

0.24

0.28

12-m

onth

0.99

1.25

1.85

1.57

0.90

0.62

0.54

0.50

0.48

0.53

Sav

ings

Dep

osit

Rat

e0.

310.

320.

340.

330.

260.

250.

250.

220.

170.

17

Inte

rban

k R

ate 3

1-m

onth

0.94

2.17

3.40

2.66

1.15

0.45

0.38

0.30

0.31

0.31

3-m

onth

1.02

2.22

3.45

2.76

1.32

0.70

0.57

0.41

0.38

0.38

US

$ S

IBo

R1-

mon

th1.

503.

385.

105.

262.

690.

340.

280.

240.

240.

20

3-m

onth

1.62

3.56

5.19

5.30

2.93

0.70

0.35

0.34

0.43

0.29

6-m

onth

1.79

3.77

5.28

5.26

3.05

1.13

0.52

0.51

0.69

0.47

1A

vera

ge o

f 10

lead

ing

bank

s.

2A

vera

ge o

f all

finan

ce c

ompa

nies

.

3C

losi

ng o

ffer r

ates

quo

ted

by m

oney

bro

kers

.

not

e: In

tere

st ra

tes

for b

anks

(exc

ept f

or p

rime

lend

ing

Rat

e) a

nd fi

nanc

e co

mpa

nies

refe

r to

aver

age

of e

nd o

f mon

th ra

tes.

Mo

NE

TAr

Y S

TAT

IST

ICS

: Do

MeS

tIC

Inte

ReS

t R

AteS

A.4


End

-Mar

ch20

0420

0520

0620

0720

0820

0920

1020

1120

1220

13

Ban

ks11

511

110

810

811

311

412

012

012

312

3

loca

l 15

55

56

67

66

6

Fore

ign

110

106

103

103

107

108

113

114

117

117

Full

bank

s23

2424

2424

2725

2626

27

Who

lesa

le b

anks

237

3534

3642

4146

5052

53

offs

hore

ban

ks50

4745

4341

4042

3839

37

(Ban

king

offi

ces

incl

udin

g he

ad o

ffice

s an

d

mai

n of

fices

)(3

98)

(396

) (3

97)

(399

) (4

08)

(409

)* (4

21)

(428

) (4

32)

(425

)

Asi

an C

urre

ncy

Uni

ts16

015

315

115

415

816

1*16

216

316

516

1

Ban

ks11

010

610

410

611

111

2*11

711

712

012

0

Mer

chan

t ban

ks50

4747

4847

4945

4645

41

Fina

nce

Com

pan

ies

33

33

33

33

3

3

(Fin

ance

com

pani

es’ o

ffice

s in

clud

ing

he

ad o

ffice

s)(3

9) (3

9) (3

9) (3

9) (3

9) (3

9) (3

9) (3

9) (3

9) (3

9)

Mer

chan

t B

anks

5148

4849

4950

4647

4642

Insu

ranc

e C

omp

anie

s13

814

014

915

3

15

115

815

815

716

416

8

Dire

ct in

sure

rs55

5556

6159

6264

6370

72

pro

fess

iona

l rei

nsur

ers

3228

2827

2527

2628

2928

Aut

horis

ed re

insu

rers

00

55

56

66

66

Cap

tive

insu

rers

5157

6060

6263

6260

5962

Insu

ranc

e B

roke

rs61

6163

6265

6663

6467

69

FIN

AN

CIA

L S

Tr

UC

TU

rE

: nu

MB

eR o

F FI

nA

nC

IAl

InS

tItu

tIo

nS

In S

InG

Ap

oR

eB

.1


End

-Mar

ch20

0420

0520

0620

0720

0820

0920

1020

1120

1220

13

Rep

rese

ntat

ive

offi

ces

4945

4243

4536

3034

3638

Ban

ks49

4542

4345

3630

3436

38

Mer

chan

t ban

ks–

––

––

––

––

–

Insu

ranc

e 3–

––

––

–2

32

2

Inte

rnat

iona

l Mon

ey B

roke

rs8

109

1010

1010

109

9

lice

nsed

Fin

anci

al A

dvi

sers

5256

6167

6973

7167

6762

Cap

ital M

arke

ts S

ervi

ces

lice

nsee

s 16

316

817

118

321

522

122

425

125

029

5

Dea

ling

in S

ecur

ities

6065

7277

9390

9998

9410

6

trad

ing

in F

utur

es C

ontra

cts

3134

3840

4650

4847

5052

Adv

isin

g on

Cor

pora

te F

inan

ce26

3033

3637

3734

3334

37

Fund

Man

agem

ent

9491

9297

110

113

107

118

119

158

leve

rage

d Fo

reig

n ex

chan

ge t

radi

ng10

1113

1418

1919

1920

23

Sec

uriti

es F

inan

cing

1315

1615

1616

1718

1717

pro

vidi

ng C

usto

dial

Ser

vice

s fo

r Sec

uriti

es26

2731

3438

4039

4040

38

Rea

l est

ate

Inve

stm

ent t

rust

Man

agem

ent 4

––

––

–1

722

2326

pro

vidi

ng C

redi

t Rat

ing

Ser

vice

s 5–

––

––

––

––

3

lice

nsed

tru

st C

omp

anie

s 6–

––

3135

3840

4850

51

Reg

iste

red

Fun

d M

anag

emen

t C

omp

anie

s 7–

––

––

––

––

74

1lo

cal b

anks

com

pris

e 6

full

bank

s.

2p

revi

ousl

y kn

own

as re

stric

ted

bank

s.

3D

ata

is u

nava

ilabl

e fo

r the

per

iod

betw

een

2004

and

200

9.

4R

egul

atio

n of

real

est

ate

inve

stm

ent t

rust

man

agem

ent c

ame

into

effe

ct o

n 1

Aug

ust 2

008.

5R

egul

atio

n of

cre

dit r

atin

g se

rvic

es c

ame

into

effe

ct o

n 17

Jan

uary

201

2.

6R

egul

atio

n of

trus

t com

pani

es c

ame

unde

r the

pur

view

of M

AS

whe

n th

e tr

ust C

ompa

nies

Act

cam

e in

to e

ffect

on

1 Fe

brua

ry 2

006.

7R

egis

tratio

n of

fund

man

agem

ent c

ompa

nies

com

men

ced

unde

r an

enha

nced

regu

lato

ry re

gim

e w

hich

cam

e in

to e

ffect

on

7 A

ugus

t 201

2.

*R

evis

ed F

igur

es


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Ass

ets

Cas

h in

han

d1,

400.

71,

349.

41,

665.

41,

772.

91,

739.

82,

026.

82,

219.

92,

796.

42,

756.

02,

639.

8B

alan

ces

with

MA

S6,

775.

07,

466.

18,

802.

09,

530.

413

,466

.013

,999

.915

,878

.717

,815

.319

,503

.321

,189

.9S

$nC

Ds

held

300.

526

7.6

98.2

0.0

0.0

0.0

0.0

9.9

201.

820

0.0

Am

ount

s du

e fro

m b

anks

113,

856.

113

3,50

5.2

183,

989.

219

4,82

8.8

217,

089.

822

7,92

3.9

232,

272.

321

6,22

3.0

184,

902.

717

6,41

2.9

In S

inga

pore

32,6

15.8

39,0

04.2

51,5

54.4

59,9

24.1

52,5

72.1

57,1

88.2

77,9

72.8

58,8

57.6

44,0

59.5

40,1

21.3

AC

us

42,9

98.9

51,0

23.1

63,4

76.1

58,9

45.9

73,1

34.5

87,2

08.0

69,1

52.1

62,1

25.1

44,0

61.6

39,3

60.6

out

side

Sin

gapo

re38

,241

.443

,477

.968

,958

.775

,958

.891

,383

.283

,527

.785

,147

.495

,240

.396

,781

.596

,931

.0In

vest

men

ts68

,217

.770

,228

.980

,627

.091

,943

.898

,715

.012

2,96

8.0

130,

081.

313

7,71

1.5

153,

318.

716

4,44

8.3

In S

inga

pore

60,1

76.8

60,6

26.7

67,7

07.6

78,3

49.4

84,8

26.2

98,7

42.6

107,

526.

211

8,07

8.3

129,

130.

614

0,17

7.8

Gov

ernm

ent s

ecur

ities

45,0

57.5

43,7

50.4

50,7

38.3

59,9

34.1

66,6

96.1

81,3

18.8

84,8

53.4

91,4

17.5

98,3

88.0

106,

671.

4o

ther

s15

,119

.316

,876

.316

,969

.318

,415

.318

,130

.117

,423

.822

,672

.826

,660

.930

,742

.633

,506

.3o

utsi

de S

inga

pore

8,04

0.8

9,60

2.3

12,9

19.4

13,5

94.3

13,8

89.0

24,2

25.6

22,5

55.2

19,6

33.2

24,1

88.2

24,2

70.5

loan

s an

d ad

vanc

es to

non

-ban

k cu

stom

ers

179,

088.

618

3,10

9.4

194,

597.

623

3,39

3.9

272,

175.

428

1,29

6.8

322,

743.

842

0,45

5.5

490,

706.

551

7,74

3.0

of w

hich

bills

fina

ncin

g5,

544.

85,

308.

16,

160.

29,

035.

29,

489.

711

,308

.520

,050

.444

,582

.256

,292

.062

,631

.6Fi

xed

and

othe

r ass

ets

28,5

98.1

29,2

96.0

38,6

70.5

51,3

89.2

65,1

12.3

58,5

98.7

78,4

11.4

60,7

99.8

59,6

11.4

62

,305

.7

liab

ilitie

sp

aid-

up c

apita

l and

rese

rves

35,9

33.0

38,1

61.7

39,0

17.4

41,4

36.9

51,3

15.7

54,9

67.6

62,4

41.7

64,8

45.4

66,3

05.4

69,0

96.2

Dep

osits

of n

on-b

ank

cust

omer

s20

6,17

6.3

223,

718.

027

2,46

2.6

314,

985.

834

7,50

7.4

391,

495.

143

3,75

7.8

483,

110.

351

8,84

0.7

536,

539.

8S

$nC

Ds

issu

ed81

5.5

676.

731

9.0

65.7

18.0

0.0

20.0

175.

029

2.0

316.

8A

mou

nts

due

to b

anks

114,

953.

712

0,84

9.1

146,

468.

416

5,52

0.8

184,

405.

117

6,39

4.4

188,

564.

922

6,42

7.6

244,

892.

225

4,79

9.4

In S

inga

pore

18,8

15.1

23,0

10.9

19,8

79.9

17,2

25.7

18,2

83.9

13,8

69.4

14,1

89.7

9,90

0.5

12,0

88.7

14,9

89.7

AC

us

71,7

74.1

67,8

42.2

78,8

40.4

95,8

67.3

92,3

13.0

113,

588.

111

9,35

0.8

147,

478.

716

2,74

6.8

163,

003.

4o

utsi

de S

inga

pore

24,3

64.5

29,9

96.0

47,7

48.1

52,4

27.8

73,8

08.1

48,9

36.9

55,0

24.4

69,0

48.4

70,0

56.7

76,8

06.3

Bills

pay

able

521.

162

0.8

998.

31,

254.

390

4.0

1,02

3.4

1,09

6.3

1,49

5.7

1,77

8.4

1,97

2.7

oth

er li

abilit

ies

39,8

37.2

41,1

96.2

49,1

84.3

59,5

95.5

84,1

48.2

82,9

33.6

95,7

26.8

79,7

57.4

78,8

91.7

82,2

14.8

tota

l Ass

ets/

liab

ilitie

s39

8,23

6.7

425,

222.

550

8,44

9.9

582,

859.

066

8,29

8.4

706,

814.

278

1,60

7.4

855,

811.

591

1,00

0.4

944,

939.

7

Co

MM

Er

CIA

L B

AN

KS

: AS

Set

S A

nD

lIA

BIl

ItIe

SC

.1


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Agr

icul

ture

, min

ing

and

quar

ryin

g21

2.5

293.

032

5.9

232.

128

3.2

260.

338

2.2

1,71

9.7

2,10

4.3

2,01

5.4

Man

ufac

turin

g9,

796.

910

,108

.010

,863

.210

,225

.811

,786

.110

,547

.310

,917

.619

,023

.527

,166

.334

,596

.8

Bui

ldin

g an

d co

nstru

ctio

n23

,548

.823

,031

.126

,345

.537

,508

.950

,006

.648

,940

.653

,593

.967

,304

.478

,704

.083

,163

.8

Hou

sing

and

brid

ging

loan

s58

,887

.161

,954

.663

,345

.173

,139

.179

,587

.091

,429

.511

2,38

1.3

131,

106.

515

2,00

3.0

156,

543.

2

Gen

eral

com

mer

ce18

,893

.819

,885

.220

,059

.022

,269

.024

,861

.623

,357

.430

,982

.948

,809

.657

,349

.863

,662

.7

tran

spor

t, st

orag

e an

d co

mm

unic

atio

n3,

956.

84,

327.

06,

297.

19,

129.

89,

211.

710

,612

.39,

018.

111

,883

.213

,089

.214

,134

.0

non

-ban

k fin

anci

al in

stitu

tions

22,1

36.9

21,9

93.1

23,8

05.6

31,3

60.4

33,5

06.1

32,4

65.3

37,9

84.6

55,5

50.9

64,8

95.1

65,9

25.8

pro

fess

iona

l and

priv

ate

indi

vidu

als

32,5

71.8

32,4

82.3

32,3

18.3

35,0

70.9

37,8

72.3

39,4

76.3

42,3

96.1

52,6

69.8

60,4

51.0

61,4

13.4

oth

ers

9,08

3.9

9,03

5.3

11,2

37.9

14,4

58.1

25,0

60.6

24,2

08.0

25,0

87.2

32,3

87.8

34,9

43.8

36,2

88.0

tota

l17

9,08

8.6

183,

109.

419

4,59

7.6

233,

393.

927

2,17

5.4

281,

296.

832

2,74

3.8

420,

455.

549

0,70

6.5

517,

743.

0

Co

MM

Er

CIA

L B

AN

KS

: lo

An

S A

nD

AD

VAn

CeS

BY

InD

uS

tRIA

l C

lAS

SIF

ICAt

Ion

C.2


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

ove

rdra

fts13

,562

.911

,790

.010

,781

.510

,437

.210

,264

.59,

973.

08,

918.

78,

591.

89,

322.

59,

462.

1

Bills

dis

coun

ting

5,54

4.8

5,30

8.1

6,16

0.2

9,03

5.2

9,48

9.7

11,3

08.5

20,0

50.4

44,5

82.2

56,2

92.0

62,6

31.6

trus

t rec

eipt

s4,

649.

55,

095.

75,

407.

26,

431.

86,

504.

04,

874.

35,

374.

66,

727.

37,

429.

47,

854.

5

term

loan

s an

d ot

hers

155,

331.

416

0,91

5.6

172,

248.

720

7,48

9.8

245,

917.

225

5,14

0.9

288,

400.

236

0,55

4.2

417,

662.

643

7,79

4.9

tota

l 17

9,08

8.6

183,

109.

419

4,59

7.6

233,

393.

927

2,17

5.4

281,

296.

832

2,74

3.8

420,

455.

549

0,70

6.5

517,

743.

0

Co

MM

Er

CIA

L B

AN

KS

: tY

peS

oF

loA

nS

An

D A

DVA

nC

eS t

o n

on

-BA

nK

Cu

Sto

MeR

SC

.3


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Dem

and

32,7

75.4

35,1

40.1

41,4

73.1

52,0

80.2

62,1

00.4

81,0

47.0

100,

394.

212

0,13

3.3

130,

965.

713

9,69

8.0

Fixe

d99

,829

.511

8,49

6.4

158,

168.

317

5,42

1.2

175,

646.

917

9,57

1.8

185,

564.

819

7,60

9.5

213,

657.

921

3,66

5.7

Sav

ings

72,9

38.3

69,3

06.2

71,7

60.9

86,4

96.0

109,

033.

512

9,99

5.1

146,

802.

516

3,78

2.5

171,

785.

518

0,35

6.7

S$n

CD

s (n

et)

515.

040

9.2

220.

865

.718

.00.

020

.016

5.0

90.2

116.

8

oth

ers

633.

077

5.4

1,06

0.3

988.

572

6.6

881.

399

6.3

1,58

5.1

2,43

1.7

2,81

9.3

tota

l20

6,69

1.2

224,

127.

327

2,68

3.4

315,

051.

634

7,52

5.4

391,

495.

243

3,77

7.8

483,

275.

451

8,93

1.0

536,

656.

5

Co

MM

Er

CIA

L B

AN

KS

: tY

peS

oF

Dep

oS

ItS

InC

luD

InG

S$n

CD

SC

.4


Per

iod

Ave

rage

2004

2005

2006

2007

2008

2009

*20

10*

2011

*20

12

S$

Mill

ion

1st

Qtr

2013

liab

ilitie

s B

ase

202

,741

.5

216

,346

.6

242

,434

.1

289

,744

.0

343

,846

.6

373,

193.

141

3,31

3.7

465,

704.

051

5,36

0.4

550,

475.

1

liqu

id A

sset

s

(a)

Min

imum

Req

uire

men

t 3

6,09

1.2

38,

238.

1 4

2,98

0.6

51,

699.

6 3

6,27

9.1

36,7

95.0

40,0

45.8

40,8

21.9

42,7

29.4

47,6

41.5

(b)

tota

l Act

ual l

iqui

d A

sset

s 5

2,34

0.0

52,

889.

6 5

3,59

7.5

65,

088.

2 6

5,78

7.4

70,4

49.1

71,2

12.6

77,9

87.9

85,2

50.6

92,7

69.2

(c)

Free

liq

uid

Ass

ets

(b) -

(a)

16,

248.

8 1

4,65

1.5

10,

616.

9 1

3,38

8.6

29,

508.

3 33

,654

.031

,166

.837

,165

.942

,521

.245

,127

.7

liqu

idity

Rat

ios

25.

8 2

4.4

22.

1 2

2.5

19.

1 18

.917

.216

.716

.516

.9

*R

evis

ed F

igur

esCo

MM

Er

CIA

L B

AN

KS

: lIQ

uID

ItY

po

SIt

Ion

C.5


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Ass

ets

Res

erve

s w

ith M

AS

160.

518

7.6

203.

127

4.9

274.

822

0.1

215.

125

1.9

318.

032

2.6

Dep

osits

with

ban

ks a

nd

othe

r fina

ncia

l ins

titut

ions

460.

745

5.1

757.

188

1.7

988.

51,

809.

41,

885.

01,

176.

21,

810.

11,

577.

8

Ban

ks45

3.3

455.

175

7.1

881.

798

8.5

1,80

9.4

1,88

5.0

1,17

6.2

1,81

0.1

1,57

7.8

oth

er in

stitu

tions

7.4

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

loan

s an

d ad

vanc

es6,

878.

97,

869.

77,

972.

210

,179

.79,

743.

18,

092.

08,

058.

29,

460.

211

,311

.511

,499

.6

Hou

sing

loan

s95

2.4

1,58

3.3

1,68

1.3

1,76

7.1

1,58

7.6

1,22

6.4

1,48

5.5

1,51

7.1

1,40

2.8

1,37

3.7

Hire

pur

chas

e2,

364.

82,

467.

62,

245.

82,

713.

12,

755.

62,

361.

32,

069.

92,

037.

72,

089.

92,

073.

1

leas

e fin

ance

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

oth

ers

3,56

1.7

3,81

8.7

4,04

5.1

5,69

9.4

5,39

9.9

4,50

4.3

4,50

2.8

5,90

5.4

7,81

8.8

8,05

2.8

Sec

uriti

es a

nd e

quiti

es70

9.4

827.

31,

008.

01,

277.

71,

456.

91,

453.

71,

259.

31,

161.

91,

414.

71,

556.

2

oth

er a

sset

s98

.910

5.2

126.

216

7.9

123.

011

6.7

106.

011

5.1

113.

110

1.1

liab

ilitie

s

Cap

ital a

nd re

serv

es1,

442.

81,

658.

41,

693.

11,

683.

31,

713.

01,

824.

91,

926.

21,

999.

22,

104.

82,

120.

0

Dep

osits

5,66

7.6

6,36

5.5

7,15

0.3

10,0

87.2

9,97

5.7

9,11

1.0

8,89

1.4

9,48

1.0

12,3

47.6

12,4

15.2

Fixe

d5,

514.

16,

240.

47,

035.

39,

939.

59,

799.

78,

861.

18,

614.

69,

218.

711

,909

.911

,945

.4

Sav

ings

145.

812

1.6

108.

914

0.0

162.

423

8.2

266.

625

2.7

220.

923

1.0

oth

ers

7.7

3.5

6.0

7.7

13.6

11.7

10.2

9.7

216.

823

8.8

Bor

row

ings

321.

368

5.4

603.

725

6.9

134.

997

.579

.645

.622

.620

.3

oth

er li

abilit

ies

876.

873

5.7

619.

575

4.5

762.

865

8.5

626.

463

9.5

492.

550

1.7

tota

l Ass

ets/

liab

ilitie

s8,

308.

59,

444.

910

,066

.612

,781

.812

,586

.411

,691

.911

,523

.612

,165

.314

,967

.515

,057

.3

FIN

AN

CE

Co

MPA

NIE

S: A

SS

etS

An

D l

IAB

IlIt

IeS

D.1


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Ass

ets

Am

ount

s du

e fro

m b

anks

25

,718

.724

,548

.332

,683

.236

,261

.832

,093

.522

,327

.022

,604

.222

,815

.121

,646

.520

,861

.4

In S

inga

pore

1,39

4.9

665.

377

1.4

660.

51,

262.

21,

488.

42,

254.

72,

567.

33,

170.

63,

134.

7

Asi

an C

urre

ncy

uni

ts14

,372

.714

,189

.815

,049

.020

,688

.913

,853

.37,

153.

95,

097.

94,

615.

05,

300.

35,

417.

2

out

side

Sin

gapo

re9,

951.

29,

693.

216

,862

.814

,912

.316

,978

.013

,684

.715

,251

.715

,632

.813

,175

.612

,309

.5

loan

s an

d ad

vanc

es to

no

n-ba

nk c

usto

mer

s18

,693

.026

,675

.027

,562

.028

,157

.121

,754

.623

,451

.125

,976

.829

,095

.726

,832

.327

,670

.4

Sec

uriti

es a

nd e

quiti

es11

,991

.111

,209

.115

,650

.221

,072

.013

,182

.724

,484

.636

,100

.028

,618

.038

,303

.339

,657

.4

oth

er a

sset

s2,

842.

02,

412.

72,

133.

93,

579.

35,

571.

56,

091.

75,

079.

27,

322.

15,

628.

86,

062.

6

liab

ilitie

s

Cap

ital a

nd re

serv

es7,

636.

08,

374.

18,

104.

59,

164.

48,

443.

28,

855.

79,

510.

29,

983.

512

,168

.112

,538

.7

Am

ount

s du

e to

ban

ks

27,3

20.4

29,4

71.5

35,8

34.0

36,4

78.5

35,6

98.1

37,9

63.7

51,2

64.3

46,9

28.5

55,0

45.1

56,9

28.5

In S

inga

pore

1,22

5.9

904.

51,

635.

21,

463.

753

0.7

3,26

5.6

3,10

1.8

585.

861

5.2

668.

7

Asi

an C

urre

ncy

uni

ts12

,226

.713

,730

.917

,851

.119

,614

.017

,419

.113

,138

.022

,920

.923

,772

.522

,413

.925

,275

.3

out

side

Sin

gapo

re13

,867

.814

,836

.216

,347

.715

,400

.717

,748

.221

,560

.025

,241

.522

,570

.232

,016

.030

,984

.4

Bor

row

ings

from

non

-ban

k cu

stom

ers

20,4

06.1

23,0

36.8

28,8

59.0

36,9

04.2

22,7

81.3

23,8

24.0

21,2

49.1

22,6

23.4

17,7

41.8

17,1

63.7

oth

er li

abilit

ies

3,88

2.4

3,96

2.7

5,23

1.8

6,52

3.2

5,67

9.7

5,71

1.0

7,73

6.8

8,31

5.6

7,45

6.0

7,62

0.9

tota

l Ass

ets/

liab

ilitie

s59

,244

.864

,845

.178

,029

.389

,070

.272

,602

.376

,354

.489

,760

.387

,851

.092

,411

.094

,251

.7

1D

ata

are

deriv

ed fr

om th

e co

nsol

idat

ion

of m

erch

ant b

anks

’ dom

estic

and

Asi

an d

olla

r ope

ratio

ns.

ME

rC

HA

NT

BA

NK

S: C

on

So

lID

AteD

AS

Set

S A

nD

lIA

BIl

ItIe

S 1

E.1


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Ass

ets

Am

ount

s du

e fro

m b

anks

25

,718

.724

,548

.332

,683

.236

,261

.832

,093

.522

,327

.022

,604

.222

,815

.121

,646

.520

,861

.4

In S

inga

pore

1,39

4.9

665.

377

1.4

660.

51,

262.

21,

488.

42,

254.

72,

567.

33,

170.

63,

134.

7

Asi

an C

urre

ncy

uni

ts14

,372

.714

,189

.815

,049

.020

,688

.913

,853

.37,

153.

95,

097.

94,

615.

05,

300.

35,

417.

2

out

side

Sin

gapo

re9,

951.

29,

693.

216

,862

.814

,912

.316

,978

.013

,684

.715

,251

.715

,632

.813

,175

.612

,309

.5

loan

s an

d ad

vanc

es to

no

n-ba

nk c

usto

mer

s18

,693

.026

,675

.027

,562

.028

,157

.121

,754

.623

,451

.125

,976

.829

,095

.726

,832

.327

,670

.4

Sec

uriti

es a

nd e

quiti

es11

,991

.111

,209

.115

,650

.221

,072

.013

,182

.724

,484

.636

,100

.028

,618

.038

,303

.339

,657

.4

oth

er a

sset

s2,

842.

02,

412.

72,

133.

93,

579.

35,

571.

56,

091.

75,

079.

27,

322.

15,

628.

86,

062.

6

liab

ilitie

s

Cap

ital a

nd re

serv

es7,

636.

08,

374.

18,

104.

59,

164.

48,

443.

28,

855.

79,

510.

29,

983.

512

,168

.112

,538

.7

Am

ount

s du

e to

ban

ks

27,3

20.4

29,4

71.5

35,8

34.0

36,4

78.5

35,6

98.1

37,9

63.7

51,2

64.3

46,9

28.5

55,0

45.1

56,9

28.5

In S

inga

pore

1,22

5.9

904.

51,

635.

21,

463.

753

0.7

3,26

5.6

3,10

1.8

585.

861

5.2

668.

7

Asi

an C

urre

ncy

uni

ts12

,226

.713

,730

.917

,851

.119

,614

.017

,419

.113

,138

.022

,920

.923

,772

.522

,413

.925

,275

.3

out

side

Sin

gapo

re13

,867

.814

,836

.216

,347

.715

,400

.717

,748

.221

,560

.025

,241

.522

,570

.232

,016

.030

,984

.4

Bor

row

ings

from

non

-ban

k cu

stom

ers

20,4

06.1

23,0

36.8

28,8

59.0

36,9

04.2

22,7

81.3

23,8

24.0

21,2

49.1

22,6

23.4

17,7

41.8

17,1

63.7

oth

er li

abilit

ies

3,88

2.4

3,96

2.7

5,23

1.8

6,52

3.2

5,67

9.7

5,71

1.0

7,73

6.8

8,31

5.6

7,45

6.0

7,62

0.9

tota

l Ass

ets/

liab

ilitie

s59

,244

.864

,845

.178

,029

.389

,070

.272

,602

.376

,354

.489

,760

.387

,851

.092

,411

.094

,251

.7

1D

ata

are

deriv

ed fr

om th

e co

nsol

idat

ion

of m

erch

ant b

anks

’ dom

estic

and

Asi

an d

olla

r ope

ratio

ns.

End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

S$

Mill

ion

Mar

ch20

13

Ass

ets

Am

ount

s du

e fro

m b

anks

4,

970.

64,

034.

74,

403.

24,

387.

45,

323.

15,

528.

55,

886.

66,

718.

57,

564.

17,

904.

4

In S

inga

pore

1,39

3.0

664.

277

0.6

659.

61,

261.

81,

488.

42,

254.

62,

567.

03,

109.

23,

126.

9

Asi

an C

urre

ncy

uni

ts3,

273.

42,

900.

63,

121.

93,

112.

03,

062.

92,

988.

72,

368.

82,

539.

62,

894.

13,

337.

6

out

side

Sin

gapo

re30

4.2

469.

951

0.6

615.

899

8.4

1,05

1.3

1,26

3.2

1,61

1.9

1,56

0.8

1,43

9.9

loan

s an

d ad

vanc

es to

no

n-ba

nk c

usto

mer

s68

8.4

685.

271

5.1

1,13

8.5

781.

784

5.6

1,91

7.8

1,66

0.0

1,73

8.0

1,74

2.1

Sec

uriti

es a

nd e

quiti

es74

5.1

1,13

7.6

1,86

4.0

1,64

1.2

1,22

1.1

3,06

7.1

3,02

4.9

3,04

3.1

2,66

3.9

2,82

3.3

oth

er a

sset

s32

6.9

299.

839

7.2

1,17

0.7

1,46

9.6

769.

060

1.1

715.

679

2.8

985.

1

liab

ilitie

s

Cap

ital a

nd re

serv

es3,

529.

32,

613.

42,

133.

62,

745.

33,

262.

93,

138.

43,

564.

63,

219.

14,

025.

94,

106.

5

Am

ount

s du

e to

ban

ks

2,30

1.8

2,84

2.4

4,23

6.7

3,94

4.6

3,64

7.8

6,03

9.7

6,45

3.8

7,43

9.2

7,31

8.0

7,91

4.7

In S

inga

pore

831.

090

4.5

1,63

5.2

1,44

9.3

527.

91,

340.

264

9.2

553.

357

8.5

621.

2

Asi

an C

urre

ncy

uni

ts1,

103.

81,

272.

31,

873.

21,

642.

61,

482.

41,

948.

42,

796.

13,

462.

13,

050.

03,

928.

1

out

side

Sin

gapo

re36

7.0

665.

672

8.3

852.

71,

637.

52,

751.

13,

008.

53,

423.

83,

689.

53,

365.

4

Bor

row

ings

from

non

-ban

k cu

stom

ers

435.

823

7.8

365.

552

1.9

341.

631

8.2

360.

945

7.7

395.

330

3.3

oth

er li

abilit

ies

464.

046

3.7

643.

81,

126.

11,

543.

271

3.9

1,05

1.1

1,02

1.2

1,01

9.5

1,13

0.3

tota

l Ass

ets/

liab

ilitie

s6,

731.

06,

157.

37,

379.

68,

337.

88,

795.

510

,210

.211

,430

.412

,137

.212

,758

.713

,455

.0

1C

orpo

rate

fina

ncia

l adv

isor

y se

rvic

es, u

nder

writ

ing

activ

ities

and

ope

ratio

ns in

the

gold

mar

ket a

re n

ot re

flect

ed in

the

data

ME

rC

HA

NT

BA

NK

S: A

SS

etS

An

D l

IAB

IlIt

IeS

oF

Do

MeS

tIC

un

It o

peR

AtIo

nS

1E

.2


2004

2005

2006

2007

2008

2009

2010

2011

2012

S$

Mill

ion

Mar

ch20

13

tota

l Ass

ets

of In

sura

nce

Ind

ustr

y (E

nd P

erio

d)

86,5

52.9

102,

428.

411

3,42

2.4

128,

777.

411

5,04

7.7

135,

801.

314

9,33

5.3

161,

114.

817

4,86

0.1

174,

821.

1

Dire

ct In

sure

rs79

,822

.994

,324

.610

5,06

0.6

118,

860.

010

4,48

7.9

123,

585.

013

6,02

8.0

143,

019.

715

6,80

2.6

159,

273.

0

pro

fess

iona

l Rei

nsur

ers

5,20

2.7

6,07

0.0

6,62

2.5

7,96

0.1

8,65

5.2

9,95

0.4

10,8

27.6

15,2

77.2

15,0

22.1

15,5

48.1

Cap

tive

Insu

rers

1,52

7.3

2,03

3.8

1,73

9.3

1,95

7.3

1,90

4.6

2,26

5.9

2,47

9.7

2,81

7.9

3,03

5.4

n.A

.

Gen

eral

Bus

ines

s: G

ross

Pre

miu

ms 1

tota

l Gen

eral

Bus

ines

s4,

902.

65,

330.

75,

481.

36,

105.

46,

829.

37,

436.

28,

580.

09,

820.

410

,416

.52,

558.

9

Dom

estic

Bus

ines

s2,

151.

32,

346.

72,

385.

92,

621.

92,

962.

52,

940.

83,

230.

63,

423.

63,

626.

71,

048.

9

offs

hore

Bus

ines

s2,

751.

32,

984.

03,

095.

43,

483.

53,

866.

84,

495.

45,

349.

46,

396.

86,

789.

81,

510.

0

life

Bus

ines

s: P

rem

ium

s

pre

miu

ms

in F

orce

(end

per

iod)

5,86

9.6

6,83

9.8

7,18

1.5

7,66

0.8

8,34

7.5

9,71

9.1

11,3

74.9

12,4

12.7

13,6

63.6

14,0

43.6

new

Bus

ines

s p

rem

ium

s

Ann

ual p

rem

ium

pol

icie

s54

9.8

982.

986

8.8

1,12

1.9

1,45

9.2

1,84

0.7

3,01

4.8

2,46

6.4

2,45

3.7

694.

5

Sin

gle

pre

miu

m p

olic

ies

life

Insu

ranc

e6,

077.

05,

354.

36,

975.

89,

031.

78,

038.

26,

501.

67,

276.

77,

253.

46,

423.

61,

404.

7

Ann

uity

237.

726

3.1

377.

440

2.9

554.

218

9.4

152.

216

8.2

171.

14.

4

1Fi

gure

s fo

r Mar

ch 2

013

do n

ot in

clud

e ca

ptiv

es a

nd m

arin

e m

utua

l ins

urer

s.

n.A

: not

ava

ilabl

e

INS

Ur

AN

CE

IND

US

Tr

Y: A

SS

etS

& p

ReM

IuM

SF.

1


2004

2005

2006

20

07

2008

20

0920

1020

1120

12

S$

mill

ion

1st

Qtr

2013

**

Exc

ess

of C

ontr

ibut

ions

ove

r

With

dra

wal

s (D

urin

g P

erio

d)

4,95

9.0

4,23

8.3

2,08

9.5

6,55

5.1

9,26

5.1

9,40

4.4

12,3

74.2

14,1

84.8

14,3

21.6

4,76

9.2

Mem

bers

’ Con

tribu

tions

15,3

20.1

16,1

05.1

16,5

47.1

18,1

85.0

20,2

93.6

20,1

86.2

22,0

39.0

24,6

72.7

26,0

95.5

8,18

8.5

With

draw

als

*10

,361

.111

,866

.814

,457

.611

,629

.911

,028

.510

,781

.89,

664.

810

,487

.911

,773

.93,

419.

3

App

rove

d H

ousi

ng S

chem

es 1

6,51

7.0

7,36

4.3

8,35

5.0

5,86

7.9

5,84

7.0

5,83

6.5

4,85

2.7

6,81

0.9

7,99

3.7

1,93

5.0

und

er S

ectio

n 15

22,

272.

62,

440.

33,

028.

03,

081.

02,

799.

82,

622.

92,

628.

92,

909.

43,

112.

295

2.8

Med

ical

Sch

emes

377

9.7

903.

599

6.3

1,07

6.7

1,30

2.9

1,47

6.4

1,64

5.4

1,79

2.1

1,84

0.4

506.

4

oth

ers

791.

81,

158.

72,

078.

31,

604.

31,

078.

884

6.0

537.

8-1

,024

.5-1

,172

.425

.1

Inte

rest

Cre

dite

d t

o

Mem

ber

s’ B

alan

ces

(Dur

ing

Per

iod

)3,

375.

33,

675.

43,

926.

84,

228.

05,

455.

16,

092.

66,

709.

87,

472.

78,

290.

62,

233.

6

Ad

vanc

ed D

epos

its w

ith

MA

S (D

urin

g P

erio

d) 4

11

,624

.510

,091

.71,

574.

417

,874

.214

,167

.315

,408

.018

,765

.919

,935

.019

,119

.15,

856.

0

Inte

rest

Ear

ning

s fr

om In

vest

men

ts

(Dur

ing

Per

iod

)3,

523.

53,

844.

14,

114.

74,

432.

15,

651.

46,

276.

36,

978.

97,

792.

78,

646.

92,

318.

4

Hol

din

gs o

f Gov

ernm

ent

Sec

uriti

es

(End

Per

iod

) 510

8,46

2.4

115,

362.

211

8,91

8.0

128,

626.

514

1,32

5.5

157,

446.

717

6,14

2.0

197,

245.

521

9,03

7.6

229,

946.

3

Mem

ber

s’ B

alan

ces

(End

Per

iod

)11

1,87

3.8

119,

787.

512

5,80

3.8

136,

586.

915

1,30

7.1

166,

804.

018

5,88

8.0

207,

545.

523

0,15

7.7

237,

160.

5.

Sou

rce:

Cen

tral p

rovi

dent

Fun

d B

oard

*In

clud

es re

fund

s an

d tra

nsfe

rs to

Res

erve

Acc

ount

/Gen

eral

Mon

eys

of th

e Fu

nd

1H

ousi

ng s

chem

es in

clud

e p

ublic

Hou

sing

and

Res

iden

tial p

rope

rties

Sch

emes

.

2S

ectio

n 15

of t

he C

pF

Act

allo

ws

with

draw

als

to b

e m

ade

on a

ny o

f the

follo

win

g gr

ound

s: a

) mem

ber h

avin

g re

ache

d th

e ag

e 55

yea

rs; b

) lea

ving

Sin

gapo

re a

nd W

est M

alay

sia;

c) p

hysi

cal i

ncap

acity

; d) u

nsou

nd m

ind;

e) d

eath

; an

d f)

Mal

aysi

an c

itize

n (le

avin

g S

inga

pore

).

3M

edic

al S

chem

es in

clud

e M

edis

ave,

Med

iShi

eld,

priv

ate

Med

ical

Insu

ranc

e an

d el

derS

hiel

d S

chem

es.

4D

epos

its p

lace

d w

ith M

AS

dur

ing

the

year

exc

ludi

ng: a

) int

eres

t on

bond

s &

inte

rest

on

Adv

ance

Dep

osits

reta

ined

as

depo

sits

by

MA

S; a

nd b

) con

vers

ion

and

rede

mpt

ion

of G

over

nmen

t Bon

ds.

5ex

clud

es a

dvan

ce d

epos

its w

ith M

AS

.

**p

rovi

sion

al

No

N-B

AN

K F

INA

NC

IAL

INS

TIT

UT

IoN

S: C

entR

Al

pR

oVI

Den

t Fu

nD

Bo

AR

DG

.1


2004

2005

2006

2007

2008

2009

2010

2011

2012

S$

Mill

ion

1st

Qtr

2013

AN

et fu

nds

rais

ed b

y G

over

nmen

t14

,965

.813

,056

.13,

200.

222

,837

.317

,526

.116

,793

.222

,667

.441

,075

.139

,864

.319

,022

.4

1)G

ross

issu

e of

Gov

ernm

ent

secu

ritie

s 131

,102

.228

,299

.819

,946

.135

,930

.938

,097

.741

,201

.360

,383

.449

,609

.350

,826

.419

,164

.5

less

:

Red

empt

ion

of G

over

nmen

t se

curit

ies

17,2

40.0

16,7

00.0

13,0

90.3

21,0

22.5

21,8

98.7

21,1

80.0

36,5

89.0

23,8

15.5

25,5

15.5

3,77

4.9

Con

vers

ion

from

acc

umul

ated

ad

vanc

e de

posi

ts7,

712.

26,

899.

83,

555.

89,

708.

412

,699

.017

,121

.320

,194

.421

,593

.922

,110

.911

,289

.6

2)n

ew a

dvan

ce d

epos

its8,

315.

87,

656.

1-1

,374

.816

,222

.313

,526

.115

,164

.218

,402

.419

,280

.218

,284

.35,

822.

4

3)n

et is

sues

of s

tatu

tory

bo

ards

’ sec

uriti

es50

0.0

700.

01,

275.

01,

415.

050

0.0

-1,2

71.0

665.

017

,595

.018

,380

.09,

100.

0

BN

ew c

apita

l rai

sed

by

th

e p

rivat

e se

ctor

5,98

7.2

11,6

80.0

11,8

40.1

22,6

50.2

9,83

9.0

24,4

52.8

12,6

73.4

16,8

87.8

6,01

9.8

3,33

2.0

1)p

ublic

issu

es o

f sha

res

3,94

2.7

6,91

6.8

7,76

1.3

7,80

5.9

5,53

8.6

3,20

9.9

6,74

4.4

10,4

20.2

2,31

5.1

1,84

1.4

2)R

ight

s is

sues

1,11

0.6

2,7

83.5

1,

317.

86,

709.

63,

365.

017

,216

.22,

143.

43,

834.

81,

438.

363

.3

3)p

rivat

e pl

acem

ents

of l

iste

d sh

ares

933.

91,

979.

72,

761.

08,

134.

793

5.4

4,02

6.8

3,78

5.7

2,63

2.8

2,26

6.4

1,42

7.3

CIs

sues

of d

ebt

secu

ritie

s 21

,237

.120

,010

.325

,754

.729

,986

.715

,494

.315

,320

.525

,880

.724

,800

.732

,780

.86,

286.

5

1)li

sted

bon

ds, d

eben

ture

s an

d

loan

sto

cks 2

6,39

9.5

5,07

4.5

8,42

2.0

17,9

40.2

8,80

4.0

6,81

6.6

17,7

93.0

15,7

97.0

26,7

08.0

4,61

0.0

2)u

nlis

ted

bond

s 314

,837

.614

,935

.817

,332

.712

,046

.56,

690.

38,

503.

98,

087.

79,

003.

76,

072.

81,

676.

5

tota

l net

fund

s ra

ised

(A+

B+

C)

42,1

90.1

44,7

46.4

40,7

95.0

75,4

74.2

42,8

59.4

56,5

66.5

61,2

21.5

82,7

63.6

78,6

64.9

28,6

40.9

1G

over

nmen

t sec

uriti

es e

xclu

ding

trea

sury

bills

.

2S

inga

pore

dol

lar-

deno

min

ated

bon

ds li

sted

on

the

Sin

gapo

re e

xcha

nge

(SG

x).

3th

is in

clud

es b

onds

that

are

not

list

ed o

n th

e S

Gx

but l

iste

d on

oth

er e

xcha

nges

.

Do

ME

ST

IC C

AP

ITA

L M

Ar

KE

T: n

et F

un

DS

RA

ISeD

In t

He

Do

MeS

tIC

CA

pIt

Al

MA

RK

etH

.1


2004

2005

2006

2007

2008

2009

2010

2011

2012

S$

Mill

ion

1st

Qtr

2013

AN

et fu

nds

rais

ed b

y G

over

nmen

t14

,965

.813

,056

.13,

200.

222

,837

.317

,526

.116

,793

.222

,667

.441

,075

.139

,864

.319

,022

.4

1)G

ross

issu

e of

Gov

ernm

ent

secu

ritie

s 131

,102

.228

,299

.819

,946

.135

,930

.938

,097

.741

,201

.360

,383

.449

,609

.350

,826

.419

,164

.5

less

:

Red

empt

ion

of G

over

nmen

t se

curit

ies

17,2

40.0

16,7

00.0

13,0

90.3

21,0

22.5

21,8

98.7

21,1

80.0

36,5

89.0

23,8

15.5

25,5

15.5

3,77

4.9

Con

vers

ion

from

acc

umul

ated

ad

vanc

e de

posi

ts7,

712.

26,

899.

83,

555.

89,

708.

412

,699

.017

,121

.320

,194

.421

,593

.922

,110

.911

,289

.6

2)n

ew a

dvan

ce d

epos

its8,

315.

87,

656.

1-1

,374

.816

,222

.313

,526

.115

,164

.218

,402

.419

,280

.218

,284

.35,

822.

4

3)n

et is

sues

of s

tatu

tory

bo

ards

’ sec

uriti

es50

0.0

700.

01,

275.

01,

415.

050

0.0

-1,2

71.0

665.

017

,595

.018

,380

.09,

100.

0

BN

ew c

apita

l rai

sed

by

th

e p

rivat

e se

ctor

5,98

7.2

11,6

80.0

11,8

40.1

22,6

50.2

9,83

9.0

24,4

52.8

12,6

73.4

16,8

87.8

6,01

9.8

3,33

2.0

1)p

ublic

issu

es o

f sha

res

3,94

2.7

6,91

6.8

7,76

1.3

7,80

5.9

5,53

8.6

3,20

9.9

6,74

4.4

10,4

20.2

2,31

5.1

1,84

1.4

2)R

ight

s is

sues

1,11

0.6

2,7

83.5

1,

317.

86,

709.

63,

365.

017

,216

.22,

143.

43,

834.

81,

438.

363

.3

3)p

rivat

e pl

acem

ents

of l

iste

d sh

ares

933.

91,

979.

72,

761.

08,

134.

793

5.4

4,02

6.8

3,78

5.7

2,63

2.8

2,26

6.4

1,42

7.3

CIs

sues

of d

ebt

secu

ritie

s 21

,237

.120

,010

.325

,754

.729

,986

.715

,494

.315

,320

.525

,880

.724

,800

.732

,780

.86,

286.

5

1)li

sted

bon

ds, d

eben

ture

s an

d

loan

sto

cks 2

6,39

9.5

5,07

4.5

8,42

2.0

17,9

40.2

8,80

4.0

6,81

6.6

17,7

93.0

15,7

97.0

26,7

08.0

4,61

0.0

2)u

nlis

ted

bond

s 314

,837

.614

,935

.817

,332

.712

,046

.56,

690.

38,

503.

98,

087.

79,

003.

76,

072.

81,

676.

5

tota

l net

fund

s ra

ised

(A+

B+

C)

42,1

90.1

44,7

46.4

40,7

95.0

75,4

74.2

42,8

59.4

56,5

66.5

61,2

21.5

82,7

63.6

78,6

64.9

28,6

40.9

1G

over

nmen

t sec

uriti

es e

xclu

ding

trea

sury

bills

.

2S

inga

pore

dol

lar-

deno

min

ated

bon

ds li

sted

on

the

Sin

gapo

re e

xcha

nge

(SG

x).

3th

is in

clud

es b

onds

that

are

not

list

ed o

n th

e S

Gx

but l

iste

d on

oth

er e

xcha

nges

.

End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

US

$ M

illio

nM

arch

2013

Ass

ets

loan

s to

non

-ban

k cu

stom

ers

93,4

94.2

120,

865.

513

9,49

9.6

197,

823.

121

4,38

1.9

219,

614.

426

8,08

1.7

312,

814.

034

0,91

4.0

358,

584.

4

Inte

rban

k fu

nds

385,

302.

238

9,48

5.1

434,

022.

953

2,67

4.6

498,

669.

646

0,72

6.4

501,

891.

452

8,82

3.2

562,

970.

654

3,99

1.1

In S

inga

pore

43,9

32.1

40,7

66.4

51,4

09.5

66,3

98.3

64,1

40.5

80,9

41.5

92,7

15.5

113,

361.

813

3,17

1.6

130,

956.

9

Inte

r-A

Cu

31,4

28.3

29,1

02.0

43,6

28.2

53,6

10.7

54,6

20.3

41,6

78.4

53,7

62.1

53,3

83.9

53,7

68.7

56,5

01.0

out

side

Sin

gapo

re30

9,94

1.8

319,

616.

733

8,98

5.2

412,

665.

537

9,90

8.9

338,

106.

535

5,41

3.7

362,

077.

537

6,03

0.3

356,

533.

2

nC

Ds

held

3,18

7.4

3,36

7.2

5,79

0.8

2,52

0.4

1,05

2.5

1,18

7.7

1,11

1.3

686.

11,

745.

62,

044.

8

oth

er a

sset

s99

,578

.797

,659

.511

9,33

5.2

173,

972.

919

8,63

5.4

187,

871.

220

0,21

5.0

177,

209.

518

7,63

3.5

183,

956.

9

liab

ilitie

s

Dep

osits

of n

on-b

ank

cust

omer

s15

0,35

4.2

162,

834.

221

6,81

8.1

275,

256.

926

2,16

2.1

269,

370.

227

3,98

0.3

296,

376.

632

7,85

4.6

333,

685.

2

Inte

rban

k fu

nds

379,

900.

039

4,08

0.5

409,

878.

054

0,68

8.3

523,

690.

550

2,23

2.6

584,

218.

259

9,56

8.3

628,

117.

961

0,74

2.4

In S

inga

pore

34,7

71.1

37,3

37.3

49,1

39.6

50,4

38.6

62,6

00.9

87,2

08.3

79,2

06.4

77,6

29.4

75,4

66.9

57,8

58.4

Inte

r-A

Cu

31,4

57.9

29,0

67.8

42,9

71.6

53,6

70.1

54,8

48.7

41,7

78.1

53,8

12.3

53,6

03.0

53,9

34.8

56,4

25.6

out

side

Sin

gapo

re31

3,67

1.1

327,

675.

431

7,76

6.8

436,

579.

640

6,24

0.9

373,

246.

245

1,19

9.5

468,

335.

949

8,71

6.2

496,

458.

5

nC

Ds

issu

ed2,

679.

42,

952.

44,

733.

13,

652.

11,

593.

91,

416.

21,

780.

41,

686.

83,

572.

84,

355.

7

oth

er li

abilit

ies

48,6

28.9

51,5

10.2

67,2

19.2

87,3

93.7

125,

292.

996

,380

.611

1,32

0.5

121,

901.

113

3,71

8.6

139,

793.

8

tota

l Ass

ets/

liab

ilitie

s58

1,56

2.5

611,

377.

469

8,64

8.5

906,

991.

091

2,73

9.4

869,

399.

697

1,29

9.4

1,01

9,53

2.8

1,09

3,26

3.8

1,08

8,57

7.2

AS

IAN

Do

LLA

r M

Ar

KE

T: A

SS

etS

An

D l

IAB

IlIt

IeS

I.1


End

of P

erio

d20

0420

0520

0620

0720

0820

0920

1020

1120

12

US

$ B

illio

nM

arch

2013

Net

Pos

ition

1

up

to 6

mon

ths

-74.

1-8

9.5

-104

.5-1

62.6

-169

.1-1

60.8

-178

.5-1

78.1

-154

.3-1

60.0

ove

r 6 m

onth

s to

1 y

ear

20.1

27.3

19.1

27.0

21.7

15.6

28.7

33.3

20.4

19.9

ove

r 1 to

3 y

ears

27.2

25.7

29.1

46.8

50.8

60.4

67.2

58.4

56.9

53.9

ove

r 3 y

ears

28.8

37.8

61.6

83.9

83.4

73.0

79.6

75.3

67.8

69.7

Cla

ims 1

up

to 6

mon

ths

415.

542

7.5

479.

260

3.3

570.

356

1.6

621.

964

2.1

701.

169

1.4

ove

r 6 m

onth

s to

1 y

ear

43.5

48.5

44.4

55.3

52.4

42.6

54.4

68.0

65.2

72.2

ove

r 1 to

3 y

ears

40.6

41.4

50.6

71.7

80.9

85.0

101.

910

9.5

115.

611

1.8

ove

r 3 y

ears

48.7

59.9

87.2

117.

711

7.4

105.

812

2.4

126.

812

9.9

131.

2

liab

ilitie

s 1

up

to 6

mon

ths

489.

651

7.0

583.

776

5.9

739.

472

2.4

800.

482

0.2

855.

485

1.4

ove

r 6 m

onth

s to

1 y

ear

23.4

21.2

25.3

28.3

30.7

27.0

25.7

34.7

44.8

52.3

ove

r 1 to

3 y

ears

13.4

15.7

21.5

24.9

30.1

24.6

34.7

51.1

58.7

57.9

ove

r 3 y

ears

19.9

22.1

25.6

33.8

34.0

32.8

42.8

51.5

62.1

61.5

1Fr

om 2

004

onw

ards

, dat

a ex

clud

e th

ose

clai

ms

or li

abilit

ies

with

una

lloca

ted

mat

urity

per

iods

. the

refo

re th

e su

m o

f all

the

mat

urity

cat

egor

ies

for c

laim

s m

ay n

ot b

e eq

ual t

o th

e su

m o

f all

the

mat

urity

cat

egor

ies

for l

iabi

litie

s.

AS

IAN

Do

LLA

r M

Ar

KE

T: M

Atu

RIt

Y t

RA

nS

FoR

MAt

Ion

BY

AS

IAn

Cu

RR

enC

Y u

nIt

S

I.2


GloSSARY


AML/CFT Anti-Money Laundering & Countering the Financing of Terrorism

AMRO ASEAN+3 Macroeconomic Research Office

ASEAN Association of Southeast Asian Nations

ASEAN+3 ASEAN plus China, Japan, South Korea

AUM Assets Under Management

BCBS Basel Committee on Banking Supervision

BIS Bank for International Settlements

CBRC China Banking Regulatory Commission

CCWG The Contract Certainty Working Group

CMG Crisis Management Group

CMIM Chiang Mai Initiative Multilateralisation

COE Certificate of Entitlement

CPI Consumer Price Index

CPSS Committee on Payment and Settlement Systems

CRAs Credit Rating Agencies

ECB European Central Bank

EFM Exempt Fund Manager

EMEAP Executives’ Meeting of East Asia-Pacific Central Banks

FATF Financial Action Task Force

FDSP Financial District Security Programme

FHC Financial Holding Company

FMC Fund Management Company

FSB Financial Stability Board

FX Foreign Exchange

G20 Group of Twenty

G3 Group of Three

GDP Gross Domestic Product

IAD Internal Audit Department

IAIA International Association of Insurance Supervisors

GloSSARY


ICBG Inter-Central Bank Games

IMF International Monetary Fund

IMFC International Monetary and Financial Committee

IOSCO International Organisation of Securities Commissions

IT Information Technology

LTV Loan-to-value

MEPS+ MAS Electronic Payment System

MoU Memorandum of Understanding

NUS National University of Singapore

OTC Over-the-counter

q-o-q SAAR Quarter-on-Quarter Seasonally Adjusted Annualised Rate

S$/SGD Singapore Dollar

S$NEER Nominal Effective Exchange Rate

SAA MAS Service Appreciation Award

SEACEN South East Asian Central Banks

SFEMC Singapore Foreign Exchange Market Committee

SGS Singapore Government Securities

SGX Singapore Exchange

SIPs Specified Investment Products

SWIFT Society for Worldwide Interbank Financial Telecommunication

US$ / USD United States Dollar

WC-CMD Working Committee on Capital Market Development

WOG Whole-of-Government


The MAS Annual Report 2012/2013 working committee would like to thank the following colleagues for their invaluable contributions:

• Banking Department Pearline Yum

• Capital Markets Intermediaries Department Yap Sock Hui

• Capital Markets Department Revathi Govindasamy

• Consumer Issues Division Beverly Tan

• Corporate Services Department Tan Teck Hau

• Currency Department Thomas Yu

• Economic Surveillance and Forecasting Department Thum Jie Liang

• External Department Alvinder Singh

• Finance Department Poon Siok Kheng

• Financial Centre Development Department Marisca Wong

• Financial Markets Strategy Department Ng Xiang Jing

• General Counsel’s Office Jo Yeo Hui-Xian

• Human Resource Department Tan Hui Luan

• Information Technology Department Sandeep Shetty

• Insurance Department Anusha Gunasegaram

• Internal Audit Department Ngoh Eng Eng

• Macroeconomic Surveillance Department Angeline Lam

• MAS Academy Nicole Koh

• MAS Recreation Club Huang Wei

• Monetary and Domestic Markets Management Department Ong Sze Han

• Prudential Policy Department Siew Sin Yuen

• Risk Management Department Jenny Low

• Specialist Risk Department Alicia Ling

• Strategic Planning Division Andrew Tan

tHAnK You


Published by Monetary Authority of SingaporeDesigned and produced by APACHE ARt ENtERPRISE

Copyright © Monetary Authority of Singapore 2013

this annual report is copyright under the Monetary Authority of Singapore.no reproduction without permission. All rights reserved.

Monetary Authority of Singapore10 Shenton Way. MAS Building. Singapore 079117

www.mas.gov.sg



10 Shenton Way MAS Building Singapore 079117www.mas.gov.sg

Documents

Monetary Authority of Singapore