Monetary Authority of SingaporeAnnuAl RepoRt 2016/17
24 Industry-Wide Stress Test24 Strengthening Cybersecurity24 Over-The-Counter (OTC) Derivatives
Reforms25 Formation of Corporate Governance
Council
25 TRUSTED FINANCIAL CENTRE 25 Preventing Money Laundering and
Terrorism Financing26 Implementation of Common Reporting
Standard26 Establishment of New MASNET Platform
27 DyNAmIC FINANCIAL CENTRE27 Establishment of Data Analytics Group
Within MAS28 Strengthening Markets and Deepening
Financial Ecosystem 30 A World-Class FinTech Hub33 Developing a Know-Your-Customer Utility34 Strengthening the Singapore Core in
Financial Services
SERvINg ThE PUbLIC, ENgAgINg STAkEhoLDERS
38 SERvINg ThE PUbLIC 38 Managing Dollars and Cents39 Singapore Savings Bonds40 MoneySENSE42 Launch of Datasets as APIs
43 PRoTECTINg CoNSUmERS 43 Review of Digital Offering of Life Insurance
Products and Advisory Services44 Implementation of Credit Bureau Act
44 PARTNERINg ACADEmIA 44 MAS Term Professorship in Economics and
Finance45 Asian Monetary Policy Forum
02 Chairman’s Message 04 Highlights of the Year
ANChoR oF ECoNomIC AND FINANCIAL STAbILITy
08 ThE ECoNomy 08 The Global Economy in 2016:
Resilient But Uninspiring09 The Singapore Economy in 2016:
Steady But Modest Growth10 Inflation Picked Up Slightly10 Global Policy Uncertainty Presents
Financial Risks
10 moNETARy PoLICy
11 mACRoPRUDENTIAL PoLICy
11 mANAgEmENT oF LIQUIDITy11 Enhancing the MAS Overnight RMB
Liquidity Facility 11 BOJ-MAS Bilateral Local Currency Swap
Agreement
13 mANAgEmENT oF oFFICIAL FoREIgN RESERvES
13 OFR Investment Performance
RobUST, TRUSTED AND DyNAmIC FINANCIAL CENTRE
18 RobUST FINANCIAL CENTRE 18 Amendments to the Securities and
Futures Act18 Enforcement Actions21 Banking21 Insurance22 Promoting Enterprise Financing23 Faster Authorisation for Capital Market
Intermediaries and Fund Managers
CoNTENTS
vALUED PARTNER oN ThE INTERNATIoNAL FRoNT
48 INTERNATIoNAL AND REgIoNAL FoRUmS
48 International Forums48 Regional Platforms49 International Assessments and
Peer Reviews49 Strengthening Global Financial Safety Net
49 DIALogUE AND CooPERATIoN49 Engagements with Our Counterparts53 Regional and Bilateral Training Programmes
oNE mAS: INTEgRATED AND CohESIvE
56 ENhANCINg CAPAbILITIES, PRoCESSES AND PRoDUCTIvITy
56 Strengthening Cybersecurity 56 Enhancing Staff Competencies in
New Areas 56 Improving Work Processes
57 CoNTRoLS AND oPERATIoNS57 Working with Our Stakeholders to Enhance
MAS’ Control Environment 57 Security and Fire Safety
57 PEoPLE DEvELoPmENT57 Investing in Staff58 Awards and Recognition
58 PRomoTINg ENvIRoNmENTAL SUSTAINAbILITy
59 CoRPoRATE SoCIAL RESPoNSIbILITy59 National Day Celebration 201659 Community Service Day59 Commemoration of Total Defence Day59 Helping the Less Fortunate
60 bUILDINg A STRoNg mAS FAmILy
63 FINANCIAL STATEmENTS
93 STATISTICAL ANNEXES
115 gLoSSARy
1
AnnuAl RepoRt 2016/17
It has been an eventful year. Internationally, we have seen important political shifts in several advanced economies, and new uncertainties emerged in multilateral cooperation. Domestically, we have taken decisive and unprecedented actions to preserve the integrity of our financial system.
The global economy is doing better. Growth has gradually strengthened across the advanced economies, while the emerging world is holding steady. The Singapore economy too should grow at a slightly firmer pace this year. Inflation, having been negative for much of 2016, has picked up alongside higher energy prices. It is likely to edge up further, though remaining below 2% on average for 2017.
Our monetary policy has been shaped in that context. We have kept the trade-weighted exchange rate band on the zero appreciation path, first put in place in April 2016, which should be adequate to ensure medium-term price stability.
On the macroprudential policy front, MAS eased the rules on vehicle financing, as inflationary pressures have receded since the loan restrictions were introduced in 2013. However, our key property market measures remain necessary for a stable and sustainable residential property market and to encourage household financial prudence.
MAS’ oversight of the financial sector in the last two years has been marked by major enforcement actions to uphold Singapore’s reputation as a clean and trusted centre. We have worked in partnership with the Commercial Affairs Department (CAD) and the Attorney-General’s Chambers (AGC) to investigate transactions related to 1MDB that flowed through some financial institutions in Singapore, and cooperated with regulatory authorities abroad to uncover a large and complex international web of money laundering. MAS took tough, unprecedented measures – closing two merchant banks, fining eight banks and issuing prohibition orders or notices of intention on seven individuals who broke our laws and anti-money laundering regulations. Four of these individuals have also been convicted of criminal offences. Singapore has moved faster than other jurisdictions in this major international episode, and taken a much wider range of enforcement actions.
Separately, following three years of extensive joint investigations with CAD, charges were brought against the masterminds behind the largest stock market manipulation case in our history. With the establishment of the new Anti-Money Laundering and Enforcement Departments in MAS, we will sharpen our surveillance of the financial sector and further enhance our enforcement capabilities.
“ The global economy is doing better. The Singapore economy too should grow at a slightly firmer pace this year.”
ChAIRmAN’S STATEmENT
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Monetary authority of Singapore
We continue to build on Singapore’s strengths as a dynamic financial hub. Consistent with the Committee on the Future Economy’s recommendations, MAS is strengthening enterprise financing for growth companies, by enhancing the venture capital ecosystem, and relaxing rules on finance companies in support of start-ups and SMEs. MAS has been amongst the first to introduce a regulatory sandbox to enable FinTech start-ups and financial institutions to experiment with new technologies without posing major risks. The inaugural Singapore FinTech Festival in November 2016 reflected the considerable momentum in Singapore’s emergence as a FinTech hub. The formation of a new Data Analytics Group (DAG) within MAS also reflects our focus on advancing the digital economy. DAG will partner industry to enhance data collection, technological capabilities and analytics expertise, so as to transform the way we do our work, both within MAS and across the financial sector.
As the financial landscape sees disruption globally, MAS has stepped up efforts to facilitate reskilling, strengthen the Singaporean core and ensure a future-ready, globally competitive financial workforce. The Financial Sector Tripartite Committee has ramped up initiatives to proactively manage retrenchments and facilitate redeployment of Singaporean finance professionals to areas seeing job growth.
On the consumer protection front, the Credit Bureau Act and amendments to the Securities and Futures Act were passed in Parliament to safeguard consumer interests, enhance their access to their credit information and better protect investors. A series of public education campaigns were also rolled out over the past year to promote the prudent use of credit and informed investing.
We commemorate 50 years of Singapore’s Currency Interchangeability Agreement with Brunei this July. The Agreement has shown resilience, through the shocks to the international monetary system in the 1970s and the Asian and Global Financial Crises. It reflects the continuing, strong relationship between our two countries, and cooperation between MAS and the Autoriti Monetari Brunei Darussalam.
Finally, I thank all MAS staff, our partners and financial industry players for their unwavering support and contributions to Singapore’s development as a respected and progressive international financial centre.
Tharman ShanmugaratnamChairman
“ We continue to build on Singapore’s strengths as a dynamic financial hub. MAS is strengthening enterprise financing for growth companies and enabling FinTech start-ups and financial institutions to experiment with new technologies.”
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AnnuAl RepoRt 2016/17
Developing a Smart Financial centre
promoting Financing For enterpriSe Development
management oF liquiDity
enhancing maS’ capabilitieS in Data analyticS
reinForcing our aml/cFt regime
Serving the public, protecting conSumerS
• TheFinancialActionTaskForcerecognisedourstronglegalandregulatoryframeworkandrobustsupervisionofourfinancialsector
• Fasterapprovalsandlowerrequirementsforventurecapitalmanagers
• Changestofinancecompanyregulationstoenhancetheirabilitytofinancesmallandmedium-sizedenterprises
• Morethan40,000investedinoverS$1.1billioninSingaporeSavingsBonds(SSB)
• OpenedthreenewSSBonlineapplicationchannels
• NewCreditBureauActintroducedstrongersafeguardsforsensitiveconsumercreditinformation
• SecuritiesandFuturesActamendedtoprovidebetterprotectiontoretailinvestors,enhanceourcapitalmarketsandstrengthenMAS’enforcementpowers
• MASOvernightRenminbi(RMB)LiquidityFacilityenhancedtoprovidemarketparticipantswithmorecertaintyoncostandavailabilityofRMBfunds
• BilaterallocalcurrencyswapagreementsignedwiththeBankofJapantoprovideJapaneseYentoSingaporefinancialinstitutionsinsupportoftheircross-borderoperations
• SingaporeFinTechFestival:Morethan13,000participantsfromover60countries
• Introducedopenarchitecture,efficientinfrastructureandasafeexperimentframeworkwiththe
-APIplaybook -Guidelinesforcloudtechnology -FinTechregulatorysandbox
• Proposedanactivity-basedpaymentsframeworkforallpaymentsservicesandapaymentscouncil
• DataAnalyticsGroupestablishedtopositionMASandthefinancialsectorforthedigitaleconomyofthefuture
upholDing Singapore’S reputation aS a clean anD truSteD Financial centre
• ClosedFalconPrivateBankforseriousfailuresinanti-moneylaundering(AML)controlsandimproperconductbyseniormanagementatSwissHeadOfficeandlocalbranch
• Finedeightbanksfor1MDB-relatedbreachesofAMLregulations
• Issuedprohibitionorders(POs)rangingfromtenyearstolifetimeagainstfourindividualsandservednoticeofintentiontoissuePOsagainstthreeotherindividuals,allofwhomwereinvolvedin1MDB-relatedbreaches
• Anex-remisierwasconvictedforspoofinginthefirstcriminalprosecutionarisingfromtheMAS-CommercialAffairsDepartmentjointinvestigationarrangement
• Twoformertradersandanex-remisierwerechargedwith333chargesinSingapore’sfirstfront-runningcaseprosecutedundertheinsidertradingprovisionsintheSecuritiesandFuturesAct
• ThreekeyindividualsbehindthepennystockcrashwerechargedinNovember2016
highlightS of the
year
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Monetary authority of Singapore
annual report 2016/17
Anchor of Economic
and Financial Stability
“Fromthesurveillanceofexternalanddomesticeconomicdevelopmentsto
modellingtheintricaciesoftheSingaporeeconomy,itisrewardingtoknowthat
myworkcontributestorobustmonetarypolicymaking.”
neha varma SeniorEconomist,
EconomicAnalysisDepartment
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Monetary authority of Singapore
annual report 2016/17
THE ECONOMY
The global economy in 2016: resilient but uninspiring The global economy began 2016 on a sluggish footing, but signs of a revival became more apparent as the year progressed, alongside a recovery in commodity prices. In the event, global GDP growth for 2016 came in at a broadly similar pace as the previous year. Reassuringly, there was some resilience to the subdued, albeit stable pace of expansion, even amid elevated policy uncertainty from two major political shocks—the Brexit referendum outcome in the UK and the result of the US presidential elections. For the open economies in the region, lacklustre global investment and trade flows continued to hinder their export-reliant industries, although the tech cycle turned up in the later part of the year. Nevertheless, domestic demand was steady, supported by firm employment conditions. In terms of policy settings, a more optimal balancebetween fiscal and monetary policy provided some support to growth across the major regions of the world.
To understand Asian growth dynamics better, MAS delved deeper into theshifts in the region’s trade patterns. In a study that featured in the October2016 Macroeconomic Review, MAS found significant shifts in Asia’s configuration of production and trade activities in the last two decades, that reflected the relative position of countries within global value chains. While the East Asian economies had evolved since the early 2000s to become upstream suppliers to China’s downstream manufacturing firms, China’s export profile has more recently exhibited significant catch-up. This has occurred alongside growing domestic production capabilities, and concomitantly, a reduced dependence on imports of intermediate inputs.
For the rest of 2017, MAS will be keeping close watch on the sustainability of the cyclical upswing which began in late 2016, and continued into the first quarter of 2017. Asian economies will need to adjust to a tightening of financial conditions as well as a turnaround in global inflation. Headline inflation has picked up since late 2016, and is set to trend higher this year reflecting supply-side cost increases such as the turnaround in commodity prices.
ANChoR oF ECoNomIC AND FINANCIAL STAbILITy
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Monetary authority of Singapore
The Singapore economy in 2016: Steady but Modest growthMAS’ expectations for both GDP growth and CPI inflation at the beginning of 2016 were realised.
economic growth kepttoamodest paceandcameinat2%, withintheforecastrangeof1–3%.
economic momentuminthedomestic economy picked up discernibly in q4 of 2016,asmanufacturing andtrade-related servicesrespondedfavourablytotheturnaroundinglobaltrade,whichincludedsemiconductorsandselected commodities.
Meanwhile,activityinthedomestic-oriented sectorremained sluggishin2016,amidweaknessintheconstructionandretail industries, asconsumersentimentstayedcautious.
Given the unevenness in global growth, MAS mapped the distribution of performances across key global markets with Singapore’s own industry and export outturns. This in turn prompted a forward-looking assessment of global corporates, drawing information from various sources, including micro datasets. Based on this analysis, MAS considered the extent to which the Singapore economy could take advantage of the opportunities presented by global developments, including in the high-tech space, which will be boosted by digitisation and automation.
In 2017, the Singapore economy should continue to grow at 1-3%. MAS is maintaining close surveillance of the gathering momentum in global manufacturing and trade, as well as their positive spillover effects on domestic income and spending. The unevenness in performance among domestic corporates also warrants close monitoring.
1–3%economic growth expected in 2017
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AnnuAl RepoRt 2016/17
ANChoR oF ECoNomIC AND FINANCIAL STAbILITy
inflation Picked up SlightlyMirroring developments on the external front, Singapore’s CPI All-Items inflation turned positive in November 2016, after registering 24 months of negative readings, reflecting the pickup in global commodity markets and the diminishing impact of budgetary and other one-off measures. For the year as a whole, CPI-All Items inflation was −0.5%, unchanged from 2015, while MAS Core Inflation, which excludes the cost of accommodation and private road transport, rose gradually over the course of 2016, to come in at an average of 0.9%, compared to 0.5% in 2015. These inflation outcomes were in line with projections made at the time of the April 2016 Monetary Policy Statement.
CPI All-Items inflation rose further to 0.6% in Q1 2017, compared to 0.0% in the previous quarter, while MAS Core Inflation edged up to 1.3% from 1.2%. The pickup in inflation largely reflected the higher prices of oil-related items, as global oil prices rose from their 2016 trough, while domestic sources of inflation remained fairly muted. Overall, the inflationary environment will continue to be relatively steady with MAS Core Inflation projected at 1–2% and CPI-All Items inflation at 0.5–1.5% for the whole of 2017. The projected pickup in inflation from last year will largely reflect the contribution of energy-related components and the impact of administrative price increases, rather than generalised demand-induced price pressures.
global Policy uncertainty Presents Financial risks Global financial markets were resilient in the face of economic and financial uncertainties in China and unexpected political events in the US and Europe in 2016. While a number of Asian currencies came under pressure amid uncertainty over Asia’s trade and growth prospects and expectations of faster-than-expected US interest rate hikes, capital outflow from Asia and corresponding pressure on Asian currencies has since eased.
Looking ahead, anti-globalisation sentiment could heighten global political risk. Furthermore, potential shifts towards more protectionist policies, and diverging monetary policies among the advanced economies, could portend weaker global growth and greater market volatility. These, coupled with the US rate normalisation, could exert pressure on debt servicing capacities of some corporates and households in Asia, including Singapore.
MONETARY POLICY
The formulation of monetary policy was guided by MAS’ analysis of the medium-term optimal path for the exchange rate. There were two key considerations. First, the assessment of wage-inflation dynamics and the projected output gap for the economy suggested that the generally low and stable inflation environment could persist. Second, MAS’ model simulations showed that the cumulative effects of the measured easing moves since January 2015 would continue to provide some support to GDP growth.
MAS core inflation is projected to average 1–2% in 2017.
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Monetary authority of Singapore
Accordingly, MAS adopted a zero percent rate of appreciation of the NominalEffectiveExchangeRate(S$NEER)policybandinApril2016,in light of the continued subdued outlook for inflation and growth. Subsequently, in October 2016, MAS signalled that the neutral policy stance was needed for an extended period in order to ensure medium-term price stability. The policy stance was reaffirmed in April 2017 in view of the largely unchanged outlook. Chart 1 traces the evolution of monetary policy in recent years.
MACROPRUDENTIAL POLICY
TheSingapore residential property marketcontinuestomoderate,withpricesfallingatagradualpacefollowinga series of macroprudential measuresintroduced since 2009.
Nonetheless, transactions increased in 2016 compared with 2015, due to healthy sales at project launches and better matching of price expectations between buyers and sellers in the resale market. This trend has continued into Q1 2017, on the back of low interest rates and continued income growth.
The government has therefore determined that the current set of property market measures remain necessary to promote a sustainable residential property market and financial prudence among households. Calibrated adjustments were made to the Seller’s Stamp Duty (SSD)1 and Total Debt Servicing Ratio (TDSR) framework2 in March 2017 to address specific feedback and market conditions.
MANAGEMENT OF LIQUIDITY
enhancing the MAS overnight rMb liquidity Facility MAS enhanced the MAS Overnight RMB Liquidity Facility in 2016 toprovide market participants with more certainty on the cost and availabilityof RMB funds. Instead of running an auction, MAS now sets the cost ofborrowing RMB funds upfront, which assures market participants of anallocation at that pre-determined price.
boJ-MAS bilateral local currency Swap AgreementTheBankofJapan(BOJ)andMASestablishedabilaterallocalcurrencyswapagreementinNovember2016.TheagreementenablesMAStoprovideJPYliquiditytoeligibleSingaporefinancialinstitutionsinsupportoftheircross-borderoperations.
1 As the number of property sales within the four-year SSD holding period window has fallen significantly since the introduction of the SSD, the SSD holding period was reduced from four to three years and the SSD rates lowered by four percentage points for each tier.
2 In response to feedback that the TDSR framework had limited some borrowers’ flexibility to monetise their properties in their retirement years, MAS decided not to apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below.
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AnnuAl RepoRt 2016/17
ANChoR oF ECoNomIC AND FINANCIAL STAbILITy
-2
10
8
6
4
2
02010 20122011 2013 2014 2015 2016 2017Q1
% o
f Pot
entia
l GDP
Inde
x%
YOY
%YO
Y
100
96
104
108
112
116
0
2
4
6
0
1
-1
2
3
4
5 Output Gap
S$NEER
Output Gap
2.7%
0.6%
Real GDP Growth
1.3%
0
2
4
6
NeutralPolicy
Modest & Gradual Appreciation NeutralPolicy
chart 1: Key Macroeconomic variables and the Monetary Policy Stance
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Monetary authority of Singapore
MANAGEMENT OF OFFICIAL FOREIGN RESERVES
Asat31March2017,MASheldS$362.8 billion (uS$259.6 billion)ofofficial foreign reserves (oFr)onitsbalancesheet.
MAS invests the OFR conservatively in a well-diversified portfolio of cash, bonds and equities that seeks to achieve good long-term returns. The portfolio is diversified across advanced and emerging market economies, with investment-grade bonds in the advanced economies comprising the largest allocation in the portfolio. About three-quarters of the OFR are denominated in the G4 currencies i.e. USD, EUR, JPY and GBP. Within the G4 currencies, the USD forms the bulk. Diversification across markets, assets and currencies helps to enhance the resilience of MAS’ portfolio across various market conditions.
In MAS’ financial statements, the OFR are accounted for on a lower of cost and market valuation basis. A valuation provision is made against investment gain when the market value of an OFR asset falls below cost. An unrealised gain is not recognised when the market value of an OFR asset rises above cost.
MAS’ financial results are reported in SGD. The reported value of the OFR hence depends on the exchange rate movements of the SGD vis-à-vis the foreign currencies in which the reserves are held. Such currency movements will result in translation effects in MAS’ financial statements. These translation effects have no impact on the international purchasing power of the OFR, and hence do not affect MAS’ ability to conduct exchange rate policy or provide a buffer in the event of a sharp deterioration in Singapore’s balance of payments. Accordingly, it would not be meaningful to hedge against the SGD to mitigate currency translation effects.
investment PerformanceChart 2 shows the investment performance of the OFR for the last five financial years. The gains/losses of OFR3, as represented by the blue bars in Chart 2, comprise two components – investment gains/losses (dark yellow bars) and currency translation effects (white bars).
Holding the SGD exchange rate constant to strip out currency translationeffects,theOFRrecordedaninvestmentgainofS$21.9billioninFY2016/17. As in previous years, the investment gain was mainly from interest income and realised capital gains from OFR investments. The increase in investment gains for FY2016/17 was due to higher interest and dividend income, higher realised capital gains and lower valuation provisions made as global markets rose over the period. Investment gains overthelastfivefinancialyearsaveragedS$11.5billionperannum.
3 Gross of investment, interest and other expenses.
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AnnuAl RepoRt 2016/17
Positive currency translation effects4 in FY2016/17 added to the gains of OFR. This was due mainly to the depreciation of the SGD against the USD and the JPY over the financial year. The exchange rate movements of the SGD against the G4 currencies for the last five financial years are shown in Table 1.
chart 2: gains/losses of the oFr (S$ billion)
Fy2012/13 Fy2013/14 Fy2014/15 Fy2015/16 Fy2016/17
9.4
-19.5
-10.1-9.2
8.2
-3.3
5.9
10.6
16.5
10.4
1.2
5.21.9
21.9
30.1
. InvestmentGains/Losses . CurrencyTranslationEffects. Gains/LossesofOFR
Table 1: exchange rate Movements of Sgd Against g4 currencies (%)
SGD5vs. FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17
USD 1.4 -1.4 -8.3 1.9 -3.6
EUR 5.3 -8.3 17.6 -4.0 2.7
JPY 16.0 7.9 6.7 -4.5 -4.5
GBP 6.6 -10.1 3.0 5.2 10.8
ANChoR oF ECoNomIC AND FINANCIAL STAbILITy
4 The currency translation effect in MAS’ financial statements depends on the exchange rate movements of the SGD against the currencies in which the OFR assets are invested in, which are primarily denominated in the G4 currencies. However, MAS’ monetary policy is centered on the management of the SGD against a basket of currencies of Singapore’s major trading partners.
5 Positive figures represent an appreciation of the SGD, while negative figures represent a depreciation of the SGD against the foreign currency over the financial year.
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Monetary authority of Singapore
quote Pending
Robust, Trusted and
Dynamic Financial Centre
“IhavemetdiversegroupsofpeoplethroughmyworkatMAS,fromstart-up
ownersseekingacorporatelicence,toCEOspresentingtheircompanies’strategicprofilesfortheyear,andevenanelderlygentlemanseekinghelptocashinadepositslipfrom
anow-defunctbank.”
chan Wei Sze AssistantDirector,
CapitalMarketsIntermediariesDepartment
16 17
Monetary authority of Singapore
annual report 2016/17
RObUST FINANCIAL CENTRE
Amendments to the Securities and Futures ActThe wide-ranging amendments to the Securities and Futures Act (SFA) were made along four key areas:
enhancing regulatory safeguards for investors, by bringing certain non-conventional investment products within MAS’ regulatory perimeter, and providing accredited investors the choice of benefitting from the full range of regulatory safeguards applicable to retail investors.
improving credibility and transparency of capital markets, with a new regulatory framework for financial benchmarks and the introduction of short-selling disclosure requirements for listed securities.
Strengthening the enforcement regime against market misconduct, through enhancements to the civil penalty regime and other amendments that clarify how certain market misconduct offences will be prosecuted.
completing legislative reforms for over-the-counter (oTc) derivatives regulation, by empowering MAS to introduce a mandatory platform trading regime and regulate OTC derivatives intermediaries and trading platforms.
enforcement Actions
1MDB-Related ReviewsMAS took regulatory actions against eight financial institutions (FIs) for anti-money laundering (AML) control lapses related to 1MDB. After directing the closure of BSI Bank in June 2016, MAS withdrew its approval for Falcon Private Bank to operate as a merchant bank in Singapore in October 2016 due to serious failures in AML controls and improper conduct by seniormanagement.FinancialpenaltiesofS$29.1millioninaggregatewere imposed on BSI Bank, Falcon Private Bank, DBS, UBS, Standard Chartered Bank, Coutts, UOB and Credit Suisse for severe breaches of AML regulations. Several bank staff were also referred to the Public Prosecutor to evaluate whether they have committed criminal offences.
MAS issued a 10-year prohibition order (PO) in March 2017 against Mr Tim Leissner, a former director of Goldman Sachs (Singapore) Pte, for making
RobUST, TRUSTED AND DyNAmIC FINANCIAL CENTRE
Financial penalties of
S$29.1 million in aggregate were imposed on BSI Bank, Falcon Private Bank, DBS, UBS, Standard Chartered Bank, Coutts, UOB and Credit Suisse for severe breaches of AML regulations.
In January 2017, the Securities and Futures (Amendment) bill 2016 was passed in Parliament.
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Monetary authority of Singapore
false statements. In May 2017, MAS issued POs against three individuals who were convicted for various 1MDB-related offences. Lifetime bans were imposed on two individuals - Mr Jens Fred Sturzenegger, former branch manager of Falcon Private Bank Ltd, and Mr Yak Yew Chee, a former BSI Bank Limited employee. A 15-year PO was issued against another former BSI Bank Limited employee, Ms Seah Mei Ying (formerly known as Ms Yvonne Seah Yew Foong).
In May 2017, MAS also served notice of its intention to issue POs against three individuals in connection with the valuation of PetroSaudi Oil Services Limited. The three individuals are Mr Ang Wee Keng Kelvin, former representative of Maybank Kim Eng Securities Pte Ltd, Mr Kevin Scully, Chief Executive Officer of NRA Capital Pte Ltd (NRA), and Mr Lee Chee Waiy, former Head of Research of NRA. For more information, please refer to our press releases:
Significant CasesIn 2016, criminal charges were brought in a number of significant cases, including the largest securities fraud case in Singapore’s history. More details of these cases are set out below. MAS will continue to deepen our enforcement expertise to deal with the evolving nature of financial crime.
• ExtensiveinvestigationsbyMASandtheCommercialAffairsDepartment(CAD) into the penny stock crash in October 2013 led to the prosecution (in November 2016) of three individuals behind Singapore’s largest market manipulation case. The three individuals had exploited over 180 trading accounts to manipulate the market for three securities counters.
• InAugust2016,followinginvestigationsbyMAS,twoformertradersin a fund management company and an ex-remisier were charged with 333 insider trading charges in Singapore’s first front-running case prosecuted under the insider trading provisions in the SFA. They had traded ahead of the fund management company, based on price-sensitive inside information on the company’s intended trades on various counters.
• InMarch2017,anex-remisierwassentencedtoatotalof16weeks’imprisonment in the first criminal prosecution arising from the MAS-CAD joint investigation arrangement. He had manipulated the stock prices of listed companies by spoofing orders for the stocks, in order to buy or sell contracts for differences in these companies’ shares at prices he wanted.
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AnnuAl RepoRt 2016/17
Civil Penalty ActionsMAS also took civil penalty actions against errant entities and individuals for insider trading, false trading and unauthorised share trading, reflecting MAS’ firm stance against deceptive actions and our resolve to stamp out such misconduct from our markets.
• InMay2016,MASwaspaidacivilpenaltyofS$316,000,aswellaslegal costs and disbursements, by a company and its sole director and shareholder, for insider trading in the shares of a listed company. The individual was also the Chief Financial Officer of the listed company.
• InFebruary2017,twoindividualswerefoundtohavecontravenedtheSFA following a trial in the State Courts. Each individual was ordered topayMASacivilpenaltyofS$100,000,aswellaslegalcostsanddisbursements. Both individuals were found to have engaged in false trading in the shares of a listed company. One of them was also found to have engaged in unauthorised trading using the account of a third individual,whopaidMASacivilpenaltyofS$50,000inaseparate out-of-court settlement in January 2013.
• InMarch2017,MASobtainedacivilpenaltyofS$125,000,aswellaslegal costs and disbursements, from a divorced couple for unauthorised trading, following a trial in the State Courts.
For more information on these cases, please refer to our press releases:
These actions, together with the strengthening of our enforcement functions under a new Enforcement Department, send a strong signal of our commitment to uphold Singapore’s reputation as a clean and trustedfinancial centre. We will continue to enhance our surveillance capabilitiesthrough the use of data analytics and other technology, so as to deter anycriminal behavior and poor controls in the industry. Our aim is to ensurethat any wrongdoing is swiftly detected, thoroughly investigated and firmlydealt with.
Supervisory ActionsMAS takes a serious view of the trading disruption, which occurred on theSingapore Exchange’s (SGX) securities market on 14 July 2016. In March 2017, MAS directed SGX to implement remedial measures, including recommendations by the Securities Industry Working Group (IWG), to improve SGX’s and industry participants’ processes. The IWG, comprising brokerage firms, independent experts and SGX, recommended improvements in areas such as restoration of corrupt data, market recovery procedures and incident communication. As such improvements will involve changes to brokerage firms’ systems or processes, SGX will contribute S$1.5milliontoco-fundbrokeragefirms’coststostrengthenoverallmarketoperational resilience.
RobUST, TRUSTED AND DyNAmIC FINANCIAL CENTRE
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Monetary authority of Singapore
banking
Enhancing Risk Management of Outsourcing ArrangementsMAS issued new guidelines on outsourcing arrangements in July 2016. Besides promoting sound risk management practices for outsourcing arrangements, the revised guidelines set out MAS’ expectations on the use of cloud computing services by FIs, and place greater emphasis on safeguarding customer information.
Enhancing the Resolution RegimeIn May 2017, MAS introduced in Parliament amendments to the MAS Act to strengthen our ability to resolve distressed FIs in an orderly manner.
These include powers to:
Require FIs to address deficiencies in their recovery plans and remove impediments to resolvability;
Temporarily stay early termination or acceleration rightsto facilitate the implementation of resolution measures; and
Allocate losses by writing down or converting to equity unsecured subordinated creditor claims of a FI.
We will also be establishing:
resolution funding arrangements to meet thecosts of implementing resolution measures;
A framework for MAS to recognise actionstaken by foreign resolution authorities on FIs inSingapore; and
A framework to grant creditors a right to compensation, where they do not receive under resolution at least what they would have received in a liquidation.
insurance
Review of Risk-Based Capital Framework for InsurersMAS took another significant step in its ongoing efforts to update itsRisk-Based Capital (RBC) framework for insurers, by seeking feedbackand performing a second quantitative impact study on its updatedproposals in the second half of 2016. MAS is finalising the frameworkand will remain closely engaged with relevant stakeholders to ensure that the RBC framework remains relevant to the industry’s needs and is in line with international standards as well as best practices, whileenhancing protection for policyholders.
The revised RBC requirements will also make it more conducive for insurers to offer long-term insurance products to policyholders, and policyholders will benefit from better product pricing and asset allocation decisions by insurers.
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Review of Policy Owners’ Protection SchemeMAS conducted a review of the Policy Owners’ Protection Scheme (PPF) culminating in a public consultation in April 2017. The PPF Scheme provides compensation to policy owners for all life insurance policies and certain general insurance policies6 in the event of any licensed direct life or general insurer defaults. To ensure that the scheme remains relevant to the evolving market, MAS has incorporated the feedback from the Singapore Deposit Insurance Corporation and PPF scheme members in the proposals.
MAS’ proposals for the PPF include:
definition of a “personal” insurance policy as one that is owned by an individual. This will allow claims on damage to properties owned and used by individuals to be protected under the scheme, even if these properties are sometimes used for commercial purposes. Examples of such properties include
privately owned cars used for hire and reward
and home offices.
This recognises thegrowing trend of individuals using their personal properties for commercial purposes, who nonetheless deserve protection under the scheme.
exclusion of certain high value property damage claims from protection under the scheme. The proposed caps, which will fully cover more than 99% of the claims, willhelp keep levies and insurance premiums affordablefor the scheme members and consumers respectively.
Promoting enterprise Financing
Simplified Regulatory Framework for Venture Capital ManagersIn February 2017, MAS issued a public consultation on a simplified regulatory framework for managers of venture capital (VC) funds. The proposed framework seeks to strengthen Singapore’s VC ecosystem and enhance start-ups’ access to funding.
RobUST, TRUSTED AND DyNAmIC FINANCIAL CENTRE
6 “Certaingeneralinsurancepolicies”refertoaccidentandhealthpolicies,insurancethatarerequiredbylaw,andSingaporepoliciesofspecifiedpersonallines,suchaspersonalmotorandpersonalproperty(structureandcontents)insurance.
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Monetary authority of Singapore
Managers of VC funds that meet certain requirements:
Can enjoy a simplified admission process;
Will not be required to comply with capital,experience and ongoing business conductrequirements; and
Will be subject to all other regulatorysafeguards for asset managers to maintain theintegrity and reputation of the vc industry.
Enhancing Finance Companies’ Roles as SME LendersIn February 2017, MAS announced changes to the prudential requirements of finance companies to strengthen their resilience and enhance their ability to provide financing to small and medium-sized enterprises (SMEs). In addition, MAS would now allow the foreign takeover of finance companies if such strategic partnerships result in innovative business models that strengthen SME financing.
Faster Authorisation for capital Market intermediaries and Fund Managers MAS has made enhancements to the authorisation process for capital market intermediaries and fund managers during the year. In 2015 and 2016, MAS received a total of 99 and 119 applications respectively for licences and registrations from capital market intermediaries and fund managers.
Average processing time for applications approved in 2015 and 2016:
5.8 months (1H 2015)
3.2 months (2H 2016)
Since January 2017, MAS has also formed dedicated authorisation teams as part of our efforts to continually improve our processes for reviewing applications for licences and registrations.
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AnnuAl RepoRt 2016/17
Participants in discussion on the simulated cyber-attacks and their response strategies.
industry-Wide Stress TestMAS conducts an annual industry-wide stress test exercise, as part of macroprudential surveillance and risk management for the financial sector. In the 2016 exercise, the stress scenario assumed a protracted slowdown of China’s economy and recession among major advanced economies, with negative spillovers to emerging Asia. Banks also had to assume sovereign rating downgrades, Asian bank defaults, as well as counterparty failures and downgrades in the oil and gas sector. The stress test results showed that Singapore’s financial system remained resilient under severe shocks.
Strengthening cybersecurityMAS and key FIs participated in cybersecurity exercises at both thesectoral and national levels. These exercises tested MAS’ and FIs’ responsesand operational readiness under various plausible cyber-attack scenarios.They will help strengthen the cyber resilience of our financial sector.
over-The-counter (oTc) derivatives reformsMAS remains fully committed to meeting the G20 and Financial StabilityBoard’s (FSB) reform objectives and has continued to make good progressin implementing the reforms. In December 2016, MAS published guidelines on margin requirements for non-centrally cleared OTC derivatives.
MAS has also been focused on ensuring that the necessary infrastructure is in place to support the smooth functioning of cross-border trades in the global OTC derivatives markets.
• InDecember2016,theSGXDerivativesTradingLimited,SGXSecuritiesTrading Limited and ICE Futures Singapore were recognised by the European Commission as third country markets equivalent to those markets regulated under the European Union, allowing non-financial European entities to trade derivatives on these markets without having to count them towards their thresholds for OTC derivatives exposures.
• InApril2017,MASconsultedontheproposedregulationsformarketoperators, aimed at ensuring our framework continues to be in line with international practices and provides our market participants with access to trading infrastructure internationally.
“ The annual industry-Wide Stress Test is a useful exercise for both banks and MAS to understand the systemic risks present in financial markets.” – Mr Chan Kok Seong, Managing Director and Chief Risk officer, uoB Group
“ The annual industry-Wide Stress Test exercise helps us to better understand the risk profiles of our businesses and their attendant exposures. This enables us to refine our business and portfolio positions, and in turn bolsters our ability to restore our financial strength in a timely manner during a crisis.” – Mr Darren tan, Chief Financial officer of oCBC Bank
Here's what participants in the annual industry-wide stress test exercise had to say:
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Formation of corporate governance councilIn February 2017, MAS formed the Corporate Governance Council to review the Code of Corporate Governance (CG Code). The Council comprises representatives from various stakeholder groups to provide a broad and diverse perspective on corporate governance issues. As part of the review, the Council will also consider how the “comply-or-explain” regime under the CG Code can be made more effective, and propose mechanisms to monitor the progress made by listed companies in strengthening their corporate governance practices.
TRUSTED FINANCIAL CENTRE
Preventing Money laundering and Terrorism Financing
Focus of AML/CFT Thematic InspectionsThe new Anti-Money Laundering (AML) Department has sharpened MAS’ supervisory focus on FIs which pose higher money laundering and terrorism financing (ML/TF) risks. The onsite inspections that the department conducts probe deeply into FIs’ governance, risk culture, systems and controls to effect positive change and strengthen the resilience of the financial sector to ML/TF risks.
FATF’s Assessment of Singapore’s AML/CFT RegimeIn September 2016, the Financial Action Task Force (FATF) published itsassessment report of Singapore’s AML/CFT regime. The report recognisedthat Singapore has a strong legal and regulatory AML/CFT framework and robust supervision of our financial sector. In addition to validating our strengths, the assessment was useful in identifying areas for improvement, which MAS and other agencies have been working on. Legislative changes were introduced recently to enhance the transparency of companies and trusts, by requiring companies and trustees to hold accurate information on beneficial owners.
AML/CFT Industry PartnershipMASandCADarecollaboratingwiththeindustrytostrengthenourcollectiveunderstandingofML/TFrisksandtypologiesthroughthecreationofanindustrypartnership.TheAML/CFTIndustryPartnership(ACIP),establishedinApril2017,bringstogetherstakeholdersfromindustryandgovernmentandprovidesadedicatedplatformtodiscusskeytransnationalillicitfinancerisksconfrontingSingapore’sfinancialandnon-financialsectors.TheACIPwilldevelopproductsforthebroaderindustrytoaidinstrengtheningtheunderstandingandmitigationoftheserisks.
MASandCADjointlyestablishedtheAciPtobringtheindustryandgovernmenttogethertocombat illicit finance.
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AnnuAl RepoRt 2016/17
implementation of common reporting StandardSingapore has enacted domestic legislation to effect the automatic exchange of financial account information (AEOI) based on the internationally agreed Common Reporting Standard (CRS). With effect from 1 January 2017, Singapore-based FIs (SGFIs) are required to implement processes and systems to collect and retain financial account information for all account holders. From 2018 onwards, SGFIs will need to transmit to the Inland Revenue Authority of Singapore (IRAS) such financial account information for tax residents of Singapore’s AEOI partners. IRAS will subsequently exchange the reported information with Singapore’s AEOI partners.
Our AEOI arrangements are subject to: • Partnershavingarobustframeworkoflawtomaintaintheconfidentiality
of information exchanged and confine its use for tax purposes;• AEOIbeingimplementedamongallkeyfinancialcentrestocreate
a level playing field; and• Reciprocityintermsofthescopeofinformationexchangedbetween
jurisdictions.
establishment of new MASneT PlatformA new MASNET platform was launched in October 2016 with enhanced security features and a new suite of services to improve FIs’ usage experience and business efficiency.
common login toallMASNETservices
Streamlined data exchangebetweenparticipants
one-stop portalforallcircularsandannouncements
improved accountmanagement processes
MASneT
As of 5 April 2017,Singapore has signed
21 bilateral AEOI agreements.
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data governance• Implementing
policies, sharing best practices and institutionalising processes to facilitate the collection and use of data
Tools• Utilisingasuiteof
data analytics tools, such as machine learning and network analysis algorithms, to gather valuable insights from the financial industry
infrastructure• Exploringtheuseof
cloud technology and reusable tools, such as code libraries, to facilitate analysis
Skillsets• Buildingupof
data analytics competences within MAS and the financial industry
Transforming MAS and the
financial sector through data
analytics
DYNAMIC FINANCIAL CENTRE
establishment of data Analytics group Within MASA new Data Analytics Group (DAG) was formed within MAS in March 2017, as part of MAS’ efforts to build strong capabilities in data analytics, sharpen our risk surveillance, enhance our supervision of FIs, and improve efficiency in regulatory compliance for FIs.
Dr David Roi Hardoon, appointed as MAS’ Chief Data Officer, will spearhead these efforts.
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AnnuAl RepoRt 2016/17
Strengthening Markets and deepening Financial ecosystem
Capital MarketsMAS introduced the Asian and green bond grants in 2017 to attract new Asian and green bonds issuers to Singapore’s bond market, and strengthen Singapore’s value proposition as Asia’s leading bond centre. The Asian bond grant co-funds issuance-related expenses for first-time Asian issuers ofuptoS$400,000.GreenbondissuerscantaponthegreenbondgranttooffsetuptoS$100,000ofcostsrelatingtotheexternalreviewrequiredofa green bond.
Foreign Exchange and DerivativesSingapore remains the largest foreign exchange (FX) centre in Asia-Pacific and third largest globally after London and New York, according to the 2016 Triennial Central Bank Survey of the global FX and OTC derivatives markets by the Bank for International Settlements.
Listed derivatives trading on SGX and ICE Futures Singapore were supported by FX and commodities futures trading. Singapore continues to be the leading centre for cleared iron ore derivatives, accounting for over 90% of the international market.
Asset ManagementMAS enlarged its external fund manager programme to encourage fundmanagers to deepen their presence in Singapore. MAS also launched apublic consultation on a new corporate and regulatory framework – Singapore Variable Capital Company (S-VACC) – for the incorporation and domiciliation of investment funds in Singapore. The S-VACC aims to offer a flexible and efficient platform for fund managers to co-locate fund domiciliation with their substantive fund management activities in Singapore, and further deepen the asset servicing ecosystem.
InsuranceMAS partnered the Nanyang Technological University (NTU) to launch the Natural Catastrophe Data Analytics Exchange and the Cyber RiskManagement Project in 2016 to develop high quality definitions, databasesand models required to enhance the provision of insurance against naturalcatastrophe and cyber risks in Singapore and Asia.
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Monetary authority of Singapore
Singapore’s Growing Financial Markets
capital markets
• Singapore’s outstanding corporate debt grew by 3.3% in 2016. Total debt issuance reached S$186 billion in 2016, an increase of7.3% from 2015.
• SGX had 17 new listings in2016,raisingS$2.4billion,whichisfourtimesoftheS$0.6billionraised in 2015. The listings in 2016 also added S$6.0 billion market capitalisation to SGX.
Foreign exchange and derivatives
• Average daily trading in Singapore’s FX market reached uS$517 billion in April 2016, up 35% fromUS$383billioninApril2013.
• Singapore’s share of global FX turnover rose to 7.9% from 5.7%.
• Trading of FX futures grew 49.7% to reach 6.3 million contracts in 2016.
• commodity futures trading more than doubled to reach 15.7 million contracts.
Asset management
• Singapore’s asset management industry grew by 7% in 2016 with managed assets amounting to S$2.7 trillion.
• This was driven by strong growth in the alternatives sector including private equity, venture capital, hedge fund, real estate and real estate investment trust, which expanded by 17%.
• Around 78% of total assets were sourced from outside Singapore, reflecting our key role in serving regional and international investors.
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A World-class FinTech hub
Ravi Menon, Managing Director, MAS, kicked off the FinTech Conference with an update on Singapore’s progress as a global FinTech Hub and the initiatives MAS had implemented to bring about Singapore’s transformation into a Smart Financial Centre.
Mr Ong Ye Kung (fourth from left), Minister for Education (Higher Education & Skills) and MAS Board Member, and Chief FinTech Officer Sopnendu Mohanty (second from right) in discussions with polytechnic students at the Singapore FinTech Festival.
The Fintech Festival featured the latest applications of technology in financial services.
The Singapore FinTech Festival 2016 attracted more than
13,000 participants from
60 countries.
Riding on the success of the event, a second run of the Singapore FinTech Festival will be organised over the week of
13nov
2017 2017
nov
17
Singapore FinTech Festival 2016MAS organised the inaugural Singapore FinTech Festival in partnership with The Association of Banks in Singapore (ABS) in November 2016. The Festival featured conferences on FinTech, Technology Risk, and RegTech; a Global FinTech Hackcelerator; a FinTech Awards; and an innovation lab crawl. The Festival not only received wide and positive coverage in mainstream and social media, but also ignited keen global interest in Singapore’s growing FinTech hub.
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Monetary authority of Singapore
Opening of MAS Innovation LabIn August 2016, the MAS Innovation Lab, named “Looking Glass @ MAS”, was launched. Located in the MAS building, the lab provides a platform for the FinTech community to connect, collaborate, and co-create with one another. It allows MAS to experiment FinTech solutions with FIs, start-ups, and technology vendors; facilitate consultations for start-ups by industry experts on areas of interest such as legal, regulation, and business-related matters; and provide a venue for relevant training sessions and networking activities for the FinTech community.
Opening of the Looking Glass @ MAS.
One of the top 20 finalist teams pitching their FinTech solution to judges and audience at the Global FinTech Hackcelerator Demo Day.
Mr Tharman Shanmugaratnam, Deputy Prime Minister and MAS Chairman, with winners of the MAS FinTech Awards.
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Establishing a Network of CollaborationToenhanceSingapore’sattractivenessasaregionalhubforforeignstartups,MASsignedninecooperationagreements(CAs)withthefollowingregulatorsandauthoritiesonFinTechinFY2016/2017.
uK’s Financial conduct Authority
Australian Securities and investment commission
Switzerland’s Financial Market Supervisory Authority
Korea’s Financial Services commission
government of Andhra Pradesh
France’s Autorité de contrôle Prudentiel et de résolution
France’s Autorité des Marchés Financiers
Abu dhabi global Market
Japan’s Financial Services Agency
remittance
retail investment
FX riskManagement
insurance brokering
Payments
Trading
MAS has received sandbox applications for innovations covering:
Chief FinTech Officer Sopnendu Mohanty and the Financial Services Agency of Japan’s Vice Commissioner for International Affairs Shunsuke Shirakawa at the signing of the Co-operation Framework in March 2017.
FinTech Regulatory SandboxIn June 2016, MAS launched a regulatory sandbox for FIs as well as FinTech players to test their innovations. The sandbox allows experiments to take place, even where it is not possible at the outset to anticipate every risk or meet every regulatory requirement. Further, the sandbox provides an environment where if an experiment fails, it fails safely and cheaply within controlled boundaries, without widespread adverse consequences.
Finance-As-A-Service API PlaybookOn 16 November 2016, the API Playbook co-created by ABS and MAS was launched at the FinTech Festival to guide industry stakeholders in their implementation of Application Programming Interfaces (APIs). To support efficient data sharing and interoperability, the Playbook recommends
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Monetary authority of Singapore
The Playbook features a list of over
400 APis that the financial services industry can consider publishing, selected based on their potential to transform the financial ecosystem.
standards for data exchange, information security and high-level key technical requirements for each of the APIs. The Playbook also sets expectations on API governance structure and risk management practices that should underpin an API-based financial ecosystem.
Distributed Ledger Interbank Payments Proof-of-ConceptMAS launched a proof-of-concept project with a consortium of FIs to use distributed ledger technology and smart contracts to make financial transactions and processes more transparent, resilient and at lower cost. Lessons learnt from the project will guide MAS and the industry in the development of better solutions for cross border payments, securities trading, and settlement of assets using distributed ledger technology. A trial on interbank payments was completed in December 2016.
Proposed Payments FrameworkIn August 2016, MAS consulted on a proposed activity-based framework forall payments services and the establishment of a payments council toenhance collaboration between users and payment providers. The proposedframework will provide for the licensing, regulation and supervision of allpayments service providers. These will include stored value facility holders,remittance companies, and virtual currency intermediaries.
developing a Know-your-customer utilityMAS is working closely with local and foreign banks, and other Singapore government agencies to pilot an industry Know-Your-Customer (KYC) utility for financial services, leveraging on trusted, government-verified data sources, such as MyInfo. KYC is a critical process for the financial services industry that has become increasingly resource-intensive. A KYC utility could potentially offer:
• Efficiencies of scale and improved productivity as a centralised hub for KYC processes;
• Better customer experience by reducing the need for customers to provide similar information to multiple FIs during on-boarding;
• Broader adoption of quality monitoring and screening capabilities across the industry;
• Harmonising and enhancing KYC procedures across participating FIs; and
• Freeing up FI resources to focus on other more complex aspects of the Customer Due Diligence process.
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Strengthening the Singapore core in Financial ServicesIn 2016, the financial sector created a net total of 2,800 jobs in growth areas such as technology, compliance, risk management, insurance, and asset and wealth management.
SkillsFuture and Talent Development Initiatives
MAS’ Asian Finance leaders Scheme (AFlS) provides co-funding for leadership programmes, including the Singapore Management University-Temasek Management Services’ Asian Financial Leaders Programme (AFLP) and the National University of Singapore’s Asia Leaders in Financial Institutions (AFLI). These programmes aim to equip Singaporeans aspiring to take on regional or global leadership roles in FIs. The pioneer batches in 2016 comprised senior participants from more than 20 FIs.
As part of a comprehensive suite of competency raising initiatives, the inaugural SkillsFuture Study Awards for the financial sector were launched in 2016, with 73 financial sector professionals receiving the awards. For 2017, we will be granting the awards toabout 170 professionals.
To build a pipeline of job-ready graduates, MAS is working closely with the institutes of higher learning to develop curricula in finance-related growth areas. For example, NTU has launched a new Risk Management and Insurance specialisation undergraduate programme in August 2016. Ngee Ann Polytechnic will launch the first SkillsFuture earn and learn Programme (elP) in consumer banking in the second half of 2017.
In 2016, the financial sector created a net total of
2,800 jobs.
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Monetary authority of Singapore
Facilitating RedeploymentWith the ongoing restructuring in the financial sector, MAS has stepped up efforts to proactively manage retrenchments and facilitate redeployment. The Financial Industry Career Advisory Centre (FiCAC) was launched in April 2016 to provide guidance to those keen to join the financial industry and those looking to move to new jobs within the industry. FiCAC has reached out to over 1,200 professionals in the past one year, through industry talks covering job opportunities and training support, career coaching and career fairs. MAS is working with the National Trades Union Congress, Workforce Singapore and Employment and Employability Institute to strengthen FiCAC’s catchment and outreach, advisory service and job-matching capability.
In 2016, the Financial Sector Tripartite committee extended its coverage beyond the banking community, to include the asset management and insurance sectors. The Committee will continue to focus on initiatives to foster a financial workforce that can meet the changing needs of the financial industry.
In March 2017, FiCAC organised a Financial Services Week, which featured industry expert series talks, industry mentoring sessions, a career preparatory workshop and career fair.
The launch of company-initiated Professional conversion Programme in March 2017 provided employers the flexibility to customise the training roadmap for new hires, and redeploy their existing staff who are at risk of job redundancy into jobs in growth areas.
FiCAC has reached out to over
1,200 professionals since itslaunch in April 2016.
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AnnuAl RepoRt 2016/17
Serving the Public, Engaging
Stakeholders “Overtheyears,MAS,throughMoneySENSE,
hastakenstepstobetterreachouttothepublicthroughmoreinnovativeand
compellingcommunications.The“Beware!InvestmentScams”campaignreflectsour
ever-evolvingapproachtofinancialeducation,andIhopethisempowersallSingaporeanstomakeinformedfinancialdecisionsintheir
everydaylives.”
Wayne tan, AssistantDirector,
CorporateFinance&ConsumerDepartment
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annual report 2016/17
SERVING THE PUbLIC
Managing dollars and centsAsat31March2017,totalcurrencyincirculationwasS$44.0billion(seeChart3),anincreaseof11.9%fromayearago.S$56.6billionofnotesandcoinswereissuedtobanksandS$51.9billionwerereturnedforthefinancial year.
chart 3: Total currency in circulation (S$ billion)
Table 2: Total currency in circulation (S$ billion)
2013 2014 2015 2016 2017
Notes 30.27 32.52 35.59 37.89 42.52
Coins 1.29 1.34 1.39 1.45 1.50
Total 31.56 33.86 36.98 39.34 44.02
MAS issued the Singapore Botanic Gardens UNESCO World Heritage Site Commemorative Coin in November 2016 to celebrate the inscription of the Singapore Botanic Gardens into the list of UNESCO World Heritage Sites. MAS also issued the Year of the Rooster Coins, which were the inaugural issue of the Singapore Fourth Chinese Almanac Coin Series, in January 2017.
To mark the 50th anniversary of the Singapore-Brunei Currency Interchangeability Agreement, MAS and the Autoriti Monetari Brunei Darussalamwilleachissueacommemorative$50polymernoteinJuly2017.
2013
31.56
2014
33.86
2015
36.98
2016
39.34
2017
44.02
SERvINg ThE PUbLIC, ENgAgINg STAkEhoLDERS
Singapore Botanic Gardens UNESCO World Heritage Site Commemorative Coin
2017 Year of Rooster Silver Proof Colour Coin
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Monetary authority of Singapore
Singapore Savings bondsMAS launched the Singapore Savings Bonds (SSB) programme in 2015 toexpand retail investors’ access to low-cost investment products. With theintroduction of additional online application channels in February 2017,investors are now able to apply through both ATMs and the internetbanking channels of the three local banks. Public response to the SSB hasbeen encouraging and MAS will continue to raise awareness of SSB as asafe and flexible way to save for the long term.
As of 31 March 2017, the Singapore Savings bonds programme has exceeded
S$1.1 billion in outstanding amount with more than
40,000 investors.
Public talks to raise awareness of the SSB.
The MAS team behind the SSB.
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AnnuAl RepoRt 2016/17
MoneySenSe
Beware! Investment Scams MoneySENSE and the Securities Investors Association (Singapore) [SIAS] conducted the “Beware! Investment Scams” campaign between April and July 2017.
The public education campaign, comprising an experiential learning phase and an education phase, was designed to let consumers experience first-hand how a typical investment scam tries to attract potential investors. When consumers expressed interest to find out more, it was revealed that they could have fallen for an investment scam.
The usual red flags of such investment scams were highlighted to consumers on the “investment website”. Consumers were alerted to how to better spot these, and understand how to protect themselves when investing. Consumers were also directed to the “Beware! Investment Scams” education website.
The “Beware! Investment Scams” campaign had three simple calls-to-action:
The campaign was conducted through print and digital media. Online outreach was via a website and an educational video featuring investment-scam smart “Aunty Soh”, played by popular artiste Hossan Leong.
Advertisements for “SantaQuay Resorts” and “Brilliant Ingots Investments”, two investment schemes designed for the Beware! Investment Scams campaign. Click on the advertisements above to find out more.
SERvINg ThE PUbLIC, ENgAgINg STAkEhoLDERS
Aunty Soh, played by Hossan Leong, reiterating our campaign’s three-step call-to-action. Click on the photo to watch the video.
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Monetary authority of Singapore
SIASandMoneySENSEalsocollaboratedwiththeSingaporePoliceForceandNationalCrimePreventionCouncilonanepisodeofinfo-dramaseriesCrimewatch,whichfeaturedinvestmentscams.
Educational ad placed in print media.
Crimewatch’s re-enactment of the UK Primeland investment scam from some years back. Click on the photo to watch the video.
Institute of Financial LiteracySince the launch of the MoneySENSE-Singapore Polytechnic Institute for Financial Literacy (IFL) in 2012, the IFL has conducted over 3,400 talks and workshops.
Topics covered at IFL’s workshops included:
basic money management
Personal investing
buying a home Planning for retirement
“ good content structure. Trainers know their content well. enjoyed the iFl workshop!” – Mr Andrew neo, Course participant
In 2016, the IFL worked with the Next Age Institute (a collaboration betweenthe National University of Singapore [NUS] and Washington University in St.Louis) to develop Singapore’s curriculum on Financial Capability and AssetBuilding (FCAB). The Singapore FCAB will equip social workers in their workto assist low income vulnerable families in managing household financesand accessing appropriate services. The Singapore FCAB will also be usedfor social work education at NUS.
Key statistics of the IFL since its launch in May 2012:
IFL’s total outreach:
110,000
3,400workshops conducted
700 social workers trained
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AnnuAl RepoRt 2016/17
SERvINg ThE PUbLIC, ENgAgINg STAkEhoLDERS
My Money SeminarsA full house crowd of 600 people attended the My Money Seminar held inOctober 2016. Speakers from ABS, IFL and SIAS spoke on topics relating to the theme – Investing in Uncertain Times. A speaker from the Office of the Public Guardian spoke on how a Lasting Power of Attorney could help with managing personal welfare and financial matters in the event of mentalincapacity.
A campus edition in February 2017 at NTU featured Mr Wee Ee Cheong,Deputy Chairman and CEO, United Overseas Bank, who shared his personal views with the students on how they can build their financial knowledge for the future.
launch of datasets as APisMAS published exchange rates, domestic interest rates and all 38 sets of data from MAS’ Monthly Statistical Bulletin as APIs, providing FIs and application service providers opportunities to serve their customers better. MAS intends to progressively publish more datasets as APIs.
“ My Money @ campus has provided me a holistic understanding of the various financial instruments that i can leverage to manage my future income and finances. With deeper knowledge of exchange-traded funds, bonds and equities, i can now make more informed decisions on how to allocate my savings!” – Mr loh Yuan Yi, final year student, nanyang Business School
UOB Deputy Chairman and CEO Mr Wee Ee Cheong speaking to students at the My Money @ Campus seminar.
Full house turn out at the My Money Seminar.
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examples of how APis can help:
Fis that use MAS’ data for monitoring and research to facilitate decision making can use these APIs to minimise costly manual data entry.
Application service providers can create applications to extract exchange rates to help companies compute and file tax returns.
researchers can automate the extraction of MAS’ data for analysis more easily and quickly.
PROTECTING CONSUMERS
review of digital offering of life insurance Products and Advisory Services In November 2016, MAS announced that all life insurance products can be sold online without advice, subject to safeguards. MAS subsequently issued guidelines in March 2017 setting out measures financial advisers and insurers should put in place to safeguard consumer interests. These include:
Providing clear disclosures to consumers on keypolicy information and how consumers can makeclaims and lodge complaints against financialadvisers or insurers; and
Making available tools and calculators so that consumers can determine if their chosen policies are affordable and suitable for their needs.
In June 2017, MAS consulted on proposals to facilitate the provision ofdigital advisory services.
MAS is proposing to allow:• digital advisers that operate as fund managers to offer their services to
retail investors even if they do not meet the track record requirement;• financial advisers to assist their clients to execute their investment
transactions and re-balance their investment portfolios in collective investment schemes, without the need for additional licensing under the SFA; and
• digital advisers to seek exemption from the regulatory requirement to collect the full suite of information on the financial circumstances of a client, such as income level and financial commitments, if they can satisfactorily mitigate the risks of providing inadequate advice based on limited client information.
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SERvINg ThE PUbLIC, ENgAgINg STAkEhoLDERS
PARTNERING ACADEMIA
MAS Term Professorship in economics and FinanceSince 2009, MAS has sponsored a Term Professorship in Economics and Finance at the National University of Singapore (NUS), where top scholars from prestigious universities are appointed to teach and conduct research. It aims to strengthen Singapore’s financial and economic research infrastructure and contribute to a vibrant research community and culture at our local universities. Term Professors also meet with MAS’ senior management and conduct discussions with MAS staff.
In 2016, Professors Steven Davis (Booth School of Business, University of Chicago) and Alan Krueger (Princeton University) were appointed Term Professors. Apart from engaging faculty members and students at NUS, Professor Davis discussed labour market issues and productivity trends with senior management and staff at MAS. He also delivered a public lecture titled “Measuring Economic Policy Uncertainty”, at which he presented a novel index to quantify policy-related economic uncertainty. Professor Krueger participated in a discussion on “Growth in the Face of Headwinds: What to Do?” at the Asian Bureau of Finance and Economic Research (ABFER) Industry Panel and Roundtable held in May 2016.
Other scholars who visited MAS under the Eminent Visitor Programme included Professor Stephen Cecchetti (Brandeis University Business School), and Professor Lawrence Christiano (Northwestern University), who advised MAS on econometric model development.
In addition to Professors Davis and Christiano, MAS also invited other academics to contribute articles to its Macroeconomic Review. In the April 2016 issue, Professors Bernard Yeung (NUS Business School) and Randall Morck (University of Alberta Business School) wrote about “Corporate Governance and the Finance Sector: An Asian Perspective”. In the October 2016 issue, Professor Wong Poh Kam (NUS Business School) contributed an article on “Economic Growth Through Innovation and Entrepreneurship”, while Associate Professor Davin Chor from NUS collaborated with MAS staff to document the evolving pattern of production and trade networks in Asia.
The consultation paper also sets out the conditions that digital advisers must meet to qualify for such flexibility, and MAS’ expectations on the management oversight and governance of algorithms.
implementation of credit bureau ActIn November 2016, Parliament passed the Credit Bureau Act, which empowers MAS to license and regulate credit bureaus that use and disclose bank customer data. The regulatory framework imposes obligations on licensed credit bureaus and their approved members to safeguard the confidentiality, security and integrity of bank customer data. The framework also allows consumers to obtain a free copy of their credit reports within 30 days of a credit approval or rejection.
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Monetary authority of Singapore
Asian Monetary Policy ForumThe Asian Monetary Policy Forum (AMPF) convened for a third year in Singapore in May 2016, in conjunction with the annual conference of the ABFER. It was jointly organised by the University of Chicago Booth School of Business, NUS Business School and MAS.
The conference line-up included prominent speakers such as Dr. Zhu Min (then Deputy Managing Director of the IMF), Professor Kenneth Rogoff (Harvard University), and Professor Olivier Blanchard (C. Fred Bergsten Senior Fellow at the Peterson Institute for International Economics and former Chief Economist of the IMF). Professor Blanchard delivered the commissioned paper on “Currency Wars, Coordination and Capital Controls”, which explored the interaction between macroeconomic policies in advanced and emerging economies, and the scope for international policy coordination. A highlight of the forum was the lunchtime dialogue with Mr Tharman Shanmugaratnam, Deputy Prime Minister, Coordinating Minister for Economic and Social Policies and Chairman of MAS, who spoke about the importance of sound social policies in building a cohesive society, and the economic challenges facing Singapore. The forum ended with a discussion by a high-level panel, which included MAS Managing Director Ravi Menon, on the economic challenges and policy issues confronting Asia.
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AnnuAl RepoRt 2016/17
Valued Partner on theInternational
Front “FromCebutoCairo,ourworkdoesnotjustrevolvearoundtravellingformeetingsbutalsohavingdeepdiscussionswithcolleaguesacrossMAS,toshapeourcontributionsoveragamutofinternationalmonetaryandfinancialmarketsissues.Onapersonalnote,I’mtwocountriesawaybeforeIcanproudlyclaimthatIhave
travelledtoallASEANcountries!”
naeem aljunied, AssistantDirector,
InternationalDepartment
46 47
Monetary authority of Singapore
annual report 2016/17
INTERNATIONAL AND REGIONAL FORUMS
international ForumsMAS management and staff are active in the various internationalorganisations and standard setting bodies, such as the International Monetary Fund (IMF), Financial Stability Board (FSB), Bank for InternationalSettlements (BIS), Basel Committee on Banking Supervision (BCBS),International Association of Insurance Supervisors (IAIS), Committee onPayments and Market Infrastructures (CPMI), International Organisationof Securities Commissions (IOSCO), Financial Action Task Force (FATF),and OECD International Network for Financial Education.
vALUED PARTNER oN ThE INTERNATIoNAL FRoNT
MAS Chairmanships on International Forums
• ManagingDirectorRaviMenoncompletedhis second term as Chair of the FSB Standing Committee on Standards Implementation in March 2017.
• InNovember2016,DeputyManagingDirectorJacqueline Loh was appointed Chair of the Markets Committee of the BIS.
• MASchairstheIOSCOAsia-PacificRegionalCommittee Working Group on Cross-Border Issues.
• MASco-chairstheCollegesWorkingGroup,asubgroup of the Supervision and Implementation Group of the BCBS. The Colleges Working Group develops guidance on good practices to enhance the effectiveness of supervisory colleges.
• MASco-chairedtheCPMI-IOSCOWorkingGroupon Cyber Resilience, which developed the first international guidance on cyber resilience for financial market infrastructures, published in June 2016.
regional PlatformsRegionally, MAS also actively participates in major groupings to strengthen cooperation and integration. These include committees under the Association of Southeast Asian Nations (ASEAN), ASEAN+3, Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP), and South East Asian Central Banks (SEACEN).
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Monetary authority of Singapore
7 TheCMIMisaUS$240billioncurrencyswapagreementestablishedin2010amongtheFinanceMinistries and Central Banks of the ASEAN member states, China, Japan and Korea (ASEAN+3 member states), to provide financial support in times of liquidity need.
MAS Chairmanships on Regional ForumsAt EMEAP, MAS is the Deputy Co-Chair of the Working Group for Payment and Settlement Systems, and leads the Interest Group on Recovery and Resolution under the Working Group on Banking Supervision.
MAS co-chairs the ASEAN Working Committee on Financial Services Liberalisation (WC-FSL). The WC-FSL oversees ASEAN’s financial services liberalisation, including the negotiation of ASEAN and ASEAN+ Free Trade Agreements (FTAs).
MAS also co-chairs the ASEAN Insurance Forum (AIFo). The AIFo brings together the WC-FSL and the ASEAN Insurance Regulators’ Meeting to facilitate the integration of ASEAN’s insurance sector.
international Assessments and Peer reviewsMAS received a ‘Compliant’ rating under the Basel Committee’s RegulatoryConsistency Assessment Programme (RCAP) on Singapore’s liquiditycoverage ratio regulations in November 2016. The rating confirmed thatSingapore meets all minimum provisions of the Basel liquidity coverageratio standards.
Strengthening global Financial Safety netIn July 2016, Parliament approved amendments to the Bretton Woods Agreements Act to allow MAS to enter into arrangements with the IMF to give grants or other financial assistance on behalf of the Government of Singapore.
The ASEAN+3 Macroeconomic Research Office (AMRO), headquarteredin Singapore, was formally accorded the legal status of an internationalorganisation on 9 February 2016. AMRO provides the macroeconomic surveillance of the region to support the effective decision-making for the Chiang Mai Initiative Multilateralisation (CMIM)7. As host country, Singapore is fully committed to supporting AMRO and contributing to regional financial stability.
DIALOGUE AND COOPERATION
engagements with our counterpartsMAS values the regular exchange of views with our counterparts, and welcomes opportunities to strengthen cooperation.
MAS has established a network of collaboration with like-minded jurisdictions. Ten MOUs and FinTech cooperation agreements (CAs) were signed with fellow regulators and authorities since March 2016.
10 Mous and FinTech cAs were signed with fellow regulators and authoritites since March 2016.
49
AnnuAl RepoRt 2016/17
Data Harmonisation Working Group
Committeeon Paymentsand Market
Infrastructures(CPMI)
Policy Development
Standing Group
Committee on the Global
Financial System
Working Group on Cyber
Resilience
Committee on Enforcement and the Exchange of
Information
IOSCO Board
Committee on Investment Management
Workgroup on Risk Mitigation
Standards
Committee on Retail Investors
Committee on Regulation
of Market Intermediaries
Asia-Pacific Regional
Committee(APRC)
Taskforce on Financial Benchmarks
Committee on Regulation of Secondary
MarketsCommittee
on Commodities Derivatives
Markets
cpmi-ioSco
international organiSation oF SecuritieS commiSSionS
(ioSco)
Financialaction
taSk Force(FatF)
bank For international SettlementS
(biS)
Implementation Monitoring
Standing Group
Markets Committee
APRC Working Group on
Cross-Border Issues
Working Group on Retail
Payments
Working Group on Digital
Innovations
Budget Committee
Asia-Pacific Group on Money
Laundering
Financial Stability and
Technical Committee
Signatories Working Group
Insurance Groups Working
Group
Governance Working Group
Financial Crime Task Force
Capital Solvency and Field Testing Working Group
ThisdiagramhighlightsselectedkeyplatformsthatMASactivelyparticipatesin.
international aSSociation
oF inSurance SuperviSorS
(iaiS)
international monetary FunD
(imF)
baSel committee on banking SuperviSion
(bcbS)
Financial Stability
boarD (FSb)
executiveS’ meeting oF
eaSt aSia-paciFic central bankS
(emeap)
Working Group on Liquidity
ASEAN Insurance
Regulators’ Meeting
Working Committee on Capital Market Development
Working Committee on
Capital Account Liberalisation
Working Committee on
ASEAN Banking Integration Framework
Working Committee on Payments & Settlements
Systems
ASEAN Capital Markets
Forum
ASEAN Senior-Level Committee on Financial Integration
Working Committee on
Financial Services Liberalisation
ASEAN Insurance
Forum
Working Committee on
Financial Inclusion
Macroprudential Supervision
Group
Accounting Experts Group
Market Risk Group
Credit Risk Group
Policy Development
Group
Supervision & Implementation
Group
Taskforce on Sovereign Exposures
Resolution Steering Group
FinTech Issues Group
Regional Consultative
Group for Asia
Steering Committee
Standing Committee on Assessment of Vulnerabilities
Standing Committee on Supervisory
and Regulatory Commission
Standing Committee
on Standards Implementation
aSSociation oF SoutheaSt aSian nationS
(aSean)
Working Group on Payment and
Settlements Systems
Working Group on Financial
Markets
Monetary and Financial
Stability Committee
Working Group on Banking Supervision
Insurance Cross-Border
Crisis Management
Group
Banking Cross-Border
Crisis Management
Group
Financial Market Infrastructure Cross-Border
Crisis Management Group
Executive Committee
Supervisory Forum
Implementation Committee
50 51
Monetary authority of Singapore
annual report 2016/17
vALUED PARTNER oN ThE INTERNATIoNAL FRoNT
Singapore-China (Chongqing) Financial ConferenceThe Singapore-China (Chongqing) Financial Conference (SCFC) was held in Chongqing, China in July 2016, supported by MAS and the Chongqing Financial Affairs Office. Managing Director Ravi Menon and Chongqing Vice Mayor Liu Guiping delivered the keynote speeches during the conference. The conference attracted over 400 attendees, representing 139 financial institutions and 113 corporates from Singapore and Chongqing. In conjunction with the conference, 28 agreements were signed, with deals exceedingUS$1.6billion. Second Singapore-Shanghai Financial ForumThe Second Singapore-Shanghai Financial Forum (SSFF) was held in Shanghai in November 2016. Jointly organised by the Shanghai Municipal Financial Services Office (FSO) and MAS, the SSFF serves as a regular platform to deepen financial cooperation between Singapore and Shanghai. Around 180 senior-level industry representatives attended the event and Singapore participants shared that the SSFF was a good platform to link up with Shanghai financial institutions. The successful conclusion of both events reflects strong financial cooperation between Singapore and China, while demonstrating strong industry interest to collaborate and explore new opportunities.
Symposium on Asian Banking and FinanceMAS co-hosted with the Federal Reserve Bank of San Francisco the second edition of the Symposium on Asian Banking and Finance in San Francisco in June 2016.
EU – Asia-Pacific Forum on Financial RegulationIn October 2016, MAS, as chair of the IOSCO Asia-Pacific Regional Committee Working Group on Cross-Border Issues, hosted the inaugural EU – Asia-Pacific Forum on Financial Regulation. The Forum sought to enhance information exchange between authorities from the EU and the Asia-Pacific region on cross-border cooperation, and was well attended by representatives from the EU and Asia-Pacific authorities.
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Monetary authority of Singapore
Asian Forum of Insurance RegulatorsMAS hosted the 12th Asian Forum of Insurance Regulators (AFIR) Annual Meeting and Conference in Singapore in March 2017. This event brought together 61 delegates from 27 jurisdictions, international organisations and multilateral bodies for two days of constructive discussions on issues affecting insurance regulation across Asia.
regional and bilateral Training ProgrammesThe MAS Academy organised 18 regional and bilateral training programmes for over 400 regulators and central bankers from Asia, the Middle East, Africa and Europe. Regional programmes included the ASEAN Financial Regulators’ Executive Programme; IT Supervision Workshop; Banking Supervisors’ Training Programme; and Regional Leadership Programme for Securities Regulators.
MAS also partnered organisations such as the Financial Stability Institute; SEACEN Research and Training Centre; and IMF-Singapore Training Institute to host seminars and contribute speakers to learning programmes.
Delegates at the AFIR Annual Meeting and Conference 2017 in deep discussion.
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AnnuAl RepoRt 2016/17
One MAS: Integrated
and Cohesive
“Aswedriveeffortstopositionthefinancialsectorforthefuture,MASisalsotransformingthewaywework.Whilechangeisexcitingandenergising,itmaybeunsettlingandchallenging
forsome.Thisisthefocusofourchangemanagementefforts–toputpeopleatthe
centreofchange.”
Shermaine tay, AssistantDirector,
CorporatePlanningandCommunicationsDepartment
54 55
Monetary authority of Singapore
annual report 2016/17
ENHANCING CAPAbILITIES, PROCESSES AND PRODUCTIVITY
Strengthening cybersecurity MAS put in place new cybersecurity measures to protect our IT systems. This includes the set-up of a 24x7 Security Operations Centre to monitor threats against MAS and the financial sector.
In line with government-wide initiatives, core MAS IT systems have been separated from the internet. To better prepare staff in response and recovery in case of a cyber breach, drills and exercises were also planned and conducted regularly.
Learning events in cybersecurity were also organised to raise awareness and increase capabilities in cyber threats detection and response.
enhancing Staff competencies in new AreasTo further strengthen organisational capabilities in data analytics,
learning events
learning places68016
were organised in 2016.
improving Work ProcessesTen cross-departmental teams participatedin the inaugural ideation challenge in September 2016 to generate innovative solutions to streamline work processes andenhance productivity in our day-to-day work.
Streamlined procurement processes during the year will enable savings of more than 2,000 man-hours in a year.
oNE mAS: INTEgRATED AND CohESIvE
Participants at the Ideation Challenge in active discussion on their ideas to improve work processes.
with
56
Monetary authority of Singapore
CONTROLS AND OPERATIONS
Working with our Stakeholders to enhance MAS’ control environment During the year, we conducted an extensive range of risk-focused audits and strengthened MAS’ internal operations in the areas of risk management, control and governance process, and information security.
We refined our audit risk methodology for a more risk-focused approach towards audit planning,and developed a new co-sourcing framework to augment our audit expertise and resources.
Security and Fire SafetyMAS received the national Safety and Security Watch group Award for the fourth time, in recognition of our proactive efforts to ensure safety and security at our premises.
We will explore greater use of technology to enhance the safety and security practices within MAS’ premises.
PEOPLE DEVELOPMENT
investing in Staff MAS continues to invest strongly in its people to develop talent and build a strong management bench strength.
To date, 90% of our leaders have completed the 360-degree survey to gain insights into their key strengths and development areas.
risk Management
control and governance
Process
information Security
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AnnuAl RepoRt 2016/17
Awards and recognition
14MAS staffreceived the national day Awards in recognition of their contributions and service to the nation.
217 MAS staff received the Service Appreciation Awards for their years of dedicated service with MAS.
oNE mAS: INTEgRATED AND CohESIvE
MAS colleagues, who have contributed much to the MAS family, at the National Day Awards.
PROMOTING ENVIRONMENTAL SUSTAINAbILITY
MAS continued to be one of the top 10 performing government offices in the annual Building Energy Benchmarking exercise run by Building Construction Authority (BCA) in 2016. The exercise measures MAS’ energy consumption and the result is testament to our continual efforts in reducing our carbon footprint in the environment.
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Monetary authority of Singapore
CORPORATE SOCIAL RESPONSIbILITY
MAS gives back to our society through initiatives driven by the MAS recreation club (MASrc). Over the past year, our staff actively volunteered their time and effort in helping out our adopted beneficiaries – lions befrienders, grace orchard School and care community Services Society.
national day celebration 2016 MAS was privileged to host senior citizens from care community Services Society at our national day celebration 2016. Armed with ukuleles and bells, the seniors took to the stage to put up a special performance of evergreen local classics such as Bengawan Solo and Ye Lai Xiang, to the delight of the staff in attendance.
community Service day In conjunction with the MAS Carnival last April, MAS held its community Service day, with a bazaar featuring food and game stalls to raise funds for our adopted beneficiaries. Pioneer generation seniors from lions befrienders attended the carnival, and gamely took part in fun races with our staff.
commemoration of Total defence day The youth were not forgotten from our activities, with MASRC organising a visit to the Singapore discovery centre and Army Museum for teenage students from grace orchard School to commemorate Total defence day.
helping the less FortunateDuring the festive period, MAS staff also helped to spread seasonal cheer to the less fortunate through their participation in the annual Share-A-gift initiative by boys’ brigade during Christmas, and the spring cleaning of homes for the elderly from lions befrienders during the Chinese New Year.
Senior citizens from Care Community Services Society took to the stage at our National Day Celebration 2016.
Pitching in to get the homes of the Lions Befrienders’ elderly ready for Chinese New Year.
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AnnuAl RepoRt 2016/17
oNE mAS: INTEgRATED AND CohESIvE
MAS CARnIVAl
ran, swam and speed-walked their way to victory, while the rest of the MAS family cheered them on, at the MAS Carnival held in April 2016 at the Toa Payoh Sports Centre.
BuiLding A STRong MAS FAMiLY MAS staff had a fun-filled year, with the 44th and 45th MASRC organising a variety of events to suit everyone’s preferences.
over
300 participants
MAS AnnuAl DInneR
In September 2016, about
1,000 colleagues and guests
came together for the Annual dinner under the theme of heroes, with tables dressed to themes such as Pokemon Go and Ghostbusters. The Heroes theme continued for the rest of the year, as management members took turns to discuss their personal heroes and inspirations in the weekly staff newsletter, MASlink.
Seniors from Lions Befrienders joined us for a day of fun and games at the MAS Carnival.
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Monetary authority of Singapore
KIDZ@WoRK
MAS FAMIlY DAY
40tH InteR-CentRAl BAnK GAMeS
Apart from the sporting pursuits, MASrc activities also kept the extended MAS family in mind.
MAS staff also had a chance to relive their childhood memories at the MAS Family day, held at Marina barrage in March 2017. Together with their families, our staff tried their hand at traditional kite making, feasted on old-school snacks, and played classic games.
Team MAS took its sporting talent regional at the 40th inter-central bank games held in bali, indonesia. Our colleagues competed against our regional counterparts in badminton, bowling, Table Tennis, Scrabble and volleyball.
Over 150 children joined their parents in the office for the annual Kidz@Work event in december 2016. The little ones filled the corridors of MAS Building with laughter as they were entertained by exciting performances, balloons, cotton candy and game booths.
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AnnuAl RepoRt 2016/17
64 Financial Statement Highlights
65 Statement by Directors
66 Auditor’s Report
69 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
financial statements
monetary authority of singapore
64
Monetary authority of Singapore
The Authority recorded a net profit before contribution to the Consolidated Fund of $28.7 billion in the financial year ended 31 March 2017, due mainly to higher interest and dividend income, higher realised capital gains and lower valuation provisions made. Positive currency translation effects also contributed to the net profit, as the Singapore Dollar weakened against the US Dollar and the Japanese Yen by 3.6% and 4.5% respectively. Total expenditure fell by 3% to $1.7 billion on lower investment and interest expenditure.
Based on the framework for contributions to the Consolidated Fund, a contribution of $4.5 billion, or 17% of the net profit after offsetting losses carried forward from previous financial years, is payable to the Consolidated Fund. The Board has approved a return of $12.1 billion to the Singapore Government. In approving the amount of profit to be returned, the Board ensures that the Authority’s capital and reserves remain adequate for the Authority to carry out its principal objects and functions. After taking into account the return to the Government, total equity and net assets of the Authority increased by $12.1 billion to $52.9 billion as at 31 March 2017.
The Currency Fund’s net external assets grew by 6.8% to $52.1 billion, backing the currency-in-circulation by 118%, compared to 124% a year ago.
mas fy2016/2017Financial Statement Highlights
65AnnuAl RepoRt
2016/17
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 69 to 91 are drawn up so as to present fairly the state of affairs of the Authority as at 31 March 2017, 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
22 June 2017
statement by Directors
For The Financial Year Ended 31 March 2017
66
Monetary authority of Singapore
OpINION The financial statements of the Monetary Authority of Singapore (the Authority), its subsidiary and Currency Fund, set out on pages 69 to 91, have been audited under my direction. These financial statements comprise the consolidated balance sheet as at 31 March 2017, and 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 notes to the consolidated financial statements, including a summary of significant accounting policies.
Section 34(3) of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition) and section 21(10) of the Currency Act (Cap. 69, 2002 Revised Edition) 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 its objects and functions. As disclosed in Note 3.1(a) to the consolidated financial statements, 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, based on the framework of accounting standards adopted by the Authority, the accompanying consolidated financial statements present fairly the state of affairs of the Authority and its subsidiary as at 31 March 2017 and the financial transactions of the Authority and its subsidiary for the financial year ended on that date.
BASIS fOR OpINION The audit was conducted in accordance with the provisions of the Monetary Authority of Singapore Act and the Currency Act and having regard to Singapore Standards on Auditing (SSAs). The responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of this report. As the Auditor-General, I am independent of the Authority and I exercise my duties and powers in accordance with the Constitution of the Republic of Singapore (1999 Revised Edition) and the Audit Act (Cap. 17, 1999 Revised Edition). Ethical requirements that are relevant to the audit and in line with the Accounting and Corporate Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) have been fulfilled. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my opinion.
OTHER INfORMATION The management is responsible for the other information. The other information comprises the information included in the Authority’s Annual Report, but does not include the financial statements and my auditor’s report thereon.
My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.
In connection with the audit of the financial statements, the auditor’s responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or the knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work performed, there is a material misstatement of this other information, that fact will be reported. I have nothing to report in this regard.
inDepenDent auDitor’s report on the auDit of the financial statements of the monetary authority of singapore
For The Financial Year Ended 31 March 2017
67AnnuAl RepoRt
2016/17
RESpONSIBIlITIES Of MANAGEMENT ANd THOSE CHARGEd wITH GOVERNANCE fOR THE fINANCIAl STATEMENTS The management is responsible for the preparation and fair presentation of the financial statements in accordance with the provisions of the Monetary Authority of Singapore Act and the Currency Act 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.
The Authority is constituted based on the Monetary Authority of Singapore Act and its dissolution requires Parliament’s approval. In preparing the financial statements, management is responsible for assessing the Authority’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is intention to wind up the Authority or for the Authority to cease operations.
Those charged with governance are responsible for overseeing the Authority’s financial reporting process.
AUdITOR’S RESpONSIBIlITIES fOR THE AUdIT Of THE fINANCIAl STATEMENTSMy objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the provisions of the Monetary Authority of Singapore Act and the Currency Act and having regard to SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the provisions of the Monetary Authority of Singapore Act and the Currency Act and having regard to SSAs, professional judgement is exercised and professional scepticism is maintained throughout the audit. An audit also includes:
• Identifyingandassessingtherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudor error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtaininganunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal controls.
• Evaluating,within thecontextofapplicable laws, theappropriatenessofaccountingpoliciesusedandthereasonableness of accounting estimates and related disclosures made by management.
• Concludingon theappropriatenessofmanagement’suseof thegoingconcernbasisofaccountingand,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Authority’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I will draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, modify my opinion. My conclusion is based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Authority to cease to continue as a going concern.
inDepenDent auDitor’s report on the auDit of the financial statements of the monetary authority of singapore
For The Financial Year Ended 31 March 2017
68
Monetary authority of Singapore
• Evaluating,within thecontextofapplicable laws, theoverallpresentation,structureandcontentof thefinancial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• ObtainingsufficientappropriateauditevidenceregardingthefinancialinformationorbusinessactivitiesoftheAuthority and its subsidiary to express an opinion on the consolidated financial statements. I am responsible for the direction, supervision and performance of the group audit. I remain solely responsible for the audit opinion.
Among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls identified during the audit are communicated to those charged with governance.
TAN YOKE MENG wIllIEAuditor-GeneralSingapore
23 June 2017
inDepenDent auDitor’s report on the auDit of the financial statements of the monetary authority of singapore
For The Financial Year Ended 31 March 2017
69AnnuAl RepoRt
2016/17
consoliDateD statement of comprehensiVe income
for the year ended 31 Marchin $ millions
GeneralReserve fund
Currencyfund Total
Note 2017 2016 2017 2016 2017 2016
Income/(Loss) from Foreign Operations [after transfers to/ from provisions]
4 26,932 433 3,153 1,451 30,085 1,884
Income/(Loss) from Domestic and Other Operations 5 311 (5) 2 3 313 (2)
Non-operating Income 6 11 10 – 1 11 11
Total Income/(loss) [after transfers to/from provisions] 27,254 438 3,155 1,455 30,409
1,893
Less:
Investment, Interest and Other Expenses 7 1,225 1,302 138 106 1,363
1,408
Personnel Expenditure 8 232 224 – – 232 224
General and Administrative Expenditure 9 63 81
– – 63 81
Depreciation/Amortisation 16 27 23 – – 27 23
Total Expenditure 1,547 1,630 138 106 1,685 1,736
profit/(loss) for the Year [after transfers to/from provisions] 25,707 (1,192) 3,017 1,349 28,724 157
Less:
Contribution to Consolidated Fund 19.2 4,457 – – – 4,457 –
Net profit/(loss) and Total Comprehensive Income/ (loss) for the Year [after transfers to/from provisions] 21,250 (1,192) 3,017 1,349 24,267 157
The accompanying notes form an integral part of these financial statements.
70
Monetary authority of Singapore
consoliDateD balance sheet
The accompanying notes form an integral part of these financial statements.
As at 31 March in $ millions
Note 2017 2016
CApITAl ANd RESERVES
Issued and Paid-up Capital 10 25,000 25,000
General Reserve Fund 11 19,908 6,396
Currency Fund Reserves 12 8,040 9,418
52,948 40,814
Represented by:
ASSETS
Cash and Bank Balances 853 861
Singapore Dollar Securities 13 9,518 8,661
Foreign Financial Assets 14 373,936 361,150
Gold 296 285
Other Assets 15 10,003 13,974
Property and Other Fixed Assets 16 189 190
394,795 385,121
Less:
lIABIlITIES
Currency in Circulation 44,019 39,339
Deposits of Financial Institutions 17 25,027 26,823
MAS Bills 18 87,870 77,982
Foreign Financial Liabilities 14 11,613 19,972
Provisions and Other Liabilities 18 76,238 54,892
Amounts Due to Singapore Government 19 97,080 125,299
341,847 344,307
NET ASSETS Of THE AUTHORITY 52,948 40,814
71AnnuAl RepoRt
2016/17
consoliDateD statement of changes in eQuity
in $ millions Note
Issued and paid-up Capital
General Reserve fund
Currency fund Reserves Total
Balance as at 1 April 2015 25,000 6,455 9,202 40,657
Total Comprehensive Income/ (Loss) for the Year (after transfers to/from provisions) – (1,192) 1,349 157
Transfer of Reserves from Currency Fund – 1,133 (1,133) –
Balance as at 31 March 2016 25,000 6,396 9,418 40,814
Total Comprehensive Income/ (Loss) for the Year (after transfers to/from provisions) – 21,250 3,017 24,267
Transfer of Reserves from Currency Fund – 4,395 (4,395) –
Return of Profit to Singapore Government 19.1 – (12,133) – (12,133)
Balance as at 31 March 2017 25,000 19,908 8,040 52,948
The accompanying notes form an integral part of these financial statements.
72
Monetary authority of Singapore
consoliDateD cash floW statement
for the year ended 31 March in $ millions
2017 2016
Cash flows from Operating Activities
Profit for the Year (after transfers to/from provisions) 28,724 157
Adjustments for:
Depreciation/Amortisation of Fixed Assets and Other Assets 27 23
Profit before Working Capital Changes 28,751 180
(Increase)/Decrease in
Singapore Dollar Securities (857) (938)
Foreign Financial Assets (12,786) 2,494
Gold (11) 5
Other Assets 3,971 694
Increase/(Decrease) in
Deposits of Financial Institutions (1,796) 1,040
MAS Bills 9,888 (19,299)
Foreign Financial Liabilities (8,359) 2,131
Provisions and Other Liabilities 21,346 2,169
Amounts due to Singapore Government (excluding Contribution to Consolidated Fund and Return of Profit to Singapore Government) (44,809) 9,184
Net Cash used in Operating Activities (4,662) (2,340)
Cash flows from Investing Activities
Purchase of Fixed Assets (26) (35)
Net Cash used in Investing Activities (26) (35)
Cash flows from financing Activities
Increase in Currency in Circulation 4,680 2,360
Net Cash from financing Activities 4,680 2,360
Net decrease in Cash and Bank Balances (8) (15)
Cash and Bank Balances as at beginning of the year 861 876
Cash and Bank Balances as at end of the year 853 861
The accompanying notes form an integral part of these financial statements.
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The Currency Fund is established under Section 21 of the Currency Act (Cap. 69, 2002 Revised Edition). Section 22 of the Act states that the external assets of the Currency Fund shall not be less than 100% of the face value of the Currency in Circulation.
As at 31 March in $ millions
Note 2017 2016
The value of External Assets and the Currency in Circulation are:
Currency in Circulation 12.2 44,019 39,339
External Assets 12.2 55,105 52,153
Less:
Foreign Financial Liabilities 12.2 2,818 2,925
Provisions and Other Liabilities 12.2 228 471
3,046 3,396
Net External Assets 52,059 48,757
statement of bacKing of currency in circulation
The accompanying notes form an integral part of these financial statements.
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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 (Cap. 186, 1999 Revised Edition) on 1 January 1971 and is located at 10 Shenton Way, MAS Building, Singapore 079117.
1.2 The consolidated financial statements presented relate to those of the Authority and its wholly-owned subsidiary, Singapore Sukuk Pte Ltd (“SSPL”). The financial statements of the Authority are not materially different from the consolidated financial statements and have not been presented separately.
1.3 The Authority, subject to the directions of the Minister, controls and administers the Financial Sector Development Fund (the “Fund”), a fund established under Section 30A of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition) for the objects and purposes set out in Section 30B of the Monetary Authority of Singapore Act. The audited financial statements of the Fund, prepared in accordance with the provisions of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition) and the Singapore Financial Reporting Standards, are available on the Authority’s website at http://www.mas.gov.sg.
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 (Cap. 186, 1999 Revised Edition), Currency Act (Cap. 69, 2002 Revised Edition) and applicable Singapore Financial Reporting Standards (“FRS”). Section 34(3) of the Monetary Authority of Singapore Act and Section 21(10) of the Currency Act provide that the Authority, in preparing its consolidated financial statements, may comply with accounting standards to the extent that it is, in the opinion of the Authority, appropriate to do so, having regard to the objects and functions of the Authority. The Authority, having considered its responsibilities for managing the Singapore dollar exchange rate and the official foreign reserves, is of the opinion that, for effective management of Singapore’s monetary policy, it is appropriate not to meet, in some respects, the Singapore Financial Reporting Standards. The consolidated financial statements accordingly disclose less information than would be required under those Standards.
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b) The following revised FRSs relevant to the Authority are applicable in the current financial year.
Effective for the Authority’s accounting periods beginning on or after 1 April 2016
Amendments to FRS 1 Presentation of Financial Statements: Disclosure Initiative
The amendments to FRS 1 clarify guidance on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies.
Amendments to FRS 16 Property, Plant and Equipment
The amendments to FRS 16 explicitly state that revenue-based methods of depreciation are not appropriate for property, plant and equipment as they may reflect factors other than the diminution of economic benefits of the asset such as technical or commercial obsolescence or wear and tear while an asset remains idle.
The revised FRSs applicable in the current financial year do 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) Subsidiaries are entities (including structured entities) over which the Authority has control. The Authority controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
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.
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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 and liabilities
Foreign financial assets and liabilities represent the Authority’s investments in a global diversified portfolio and are stated at cost. Provision has been made for diminution in value, if any, based on the lower of cost and market value on an individual investment basis.
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3.10 financial derivatives
Financial derivatives include forwards, swaps, futures and options and are included in foreign financial assets and foreign financial liabilities. Other than financial instruments that are subject to margin requirements or central clearing which are fair valued, provision has been made for diminution in value, if any, of other financial derivatives based on the lower of cost and market value on an individual investment basis.
3.11 Repurchase and Reverse Repurchase Agreements (“Repos” and “Reverse Repos”)
Repos are treated as collateralised lending and the amounts lent are included in “Other Assets”. Reverse repos are treated as collateralised borrowings and the amounts borrowed are included in “Provisions and Other Liabilities”. The securities sold under reverse repos are treated as pledged assets and remain on the consolidated balance sheet. 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 and 3 to 5 years 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 expensed 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.
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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/(lOSS) fROM dOMESTIC ANd OTHER OpERATIONS
Income/(loss) from domestic and other operations includes mainly interest, write-back of/additional provision for diminution in value of Singapore Dollar Securities and other income/(loss) from Singapore dollar money market transactions, licence and inspection fees, revenue from currency-related operations, custody fee and revenue from services rendered to banks and financial institutions on MAS Network and MAS Electronic Payment System which provides real-time gross settlement of payments.
6 NON-OpERATING INCOME
Non-operating income includes rental and carpark income, liquidated damages and management service fees.
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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 2017 2016
Salaries 195 190Employer’s Contribution to the Central Provident Fund 22 20Staff Benefits and Training 11 10
The Minister-in-charge of the Authority is not paid a salary by the Authority. Directors’ fees for the year totalled $0.13 million (2016: $0.14 million). All Ministers serving on the Authority’s Board of Directors do not receive directors’ fees.
8.2 The key management personnel compensation is as follows:
in $ millions 2017 2016
Salaries and Other Short-term Employee Benefits 23 21Other Long-term Employee Benefits 4 4
Post-employment benefits of $0.8 million (2016: $0.7 million) were also provided to key management personnel.
Executive Directors, Department Heads and above, are considered as key management personnel for
this purpose.
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9 GENERAl ANd AdMINISTRATIVE ExpENdITURE
This includes the following:
in $ millions 2017 2016
Information Technology 16 15Information Resources 7 6Subscription to Organisations 7 5Rental and Maintenance 6 6Travel and Accommodation 4 5Consultancy, Legal and Other Fees 3 8IT Operating Lease 2 2Audit Fee 1 1Publishing and Printing – 13
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 (Cap. 186, 1999 Revised Edition) that is, to maintain price stability conducive to sustainable economic growth, foster a sound and reputable financial centre, grow Singapore as an internationally competitive financial centre and ensure prudent and effective management of the official foreign reserves of Singapore. As required by the Constitution of the Republic of Singapore, the Authority has to determine and safeguard the past reserves of the Authority which were not accumulated during the current term of office of the Government.
10.3 Taking into consideration the Authority’s capital and reserves needs for its principal objects, the Authority conducts capital and reserves adequacy assessment regularly. It includes a comprehensive assessment of risks that the Authority is exposed to, the measurement, monitoring and stress testing of these risks and an evaluation of the adequacy of the Authority’s capital and reserves in relation to these risks.
10.4 The return of profit to the Singapore Government, from the General Reserve Fund and/or from the net profit for each financial year, is determined by the Authority and the remainder of the net profit, if any, is credited to the General Reserve Fund, in accordance with Section 6 of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition).
11 GENERAl RESERVE fUNd
The General Reserve Fund is established under Section 6(1) of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition).
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12 CURRENCY fUNd RESERVES
12.1 The Currency Fund, established under Section 21 of the Currency Act (Cap. 69, 2002 Revised Edition), is maintained and managed by the Authority in the manner prescribed by the Act.
12.2 The assets and liabilities of the Currency Fund as at 31 March are as follows:
in $ millions Note 2017 2016
External Assets
Gold 231 223
Foreign Investments 14.1 54,874 51,930
55,105 52,153
Less:
liabilities
Active Currency in Circulation 43,186 38,506
Currency Held by the Authority 833 833
Currency in Circulation 44,019 39,339
Foreign Financial Liabilities 14.1 2,818 2,925
Provisions and Other Liabilities 228 471
3,046 3,396
47,065 42,735
Currency fund Reserves 8,040 9,418
13 SINGApORE dOllAR SECURITIES
Singapore Dollar Securities comprise:
in $ millions 2017 2016
Singapore Government Bonds 9,391 8,609
Singapore Dollar Corporate Bonds 127 52
9,518 8,661
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14 fOREIGN fINANCIAl ASSETS ANd lIABIlITIES
14.1 These comprise the following:
General Reserve fund
Currency fund Total
in $ millions Note 2017 2016 2017 2016 2017 2016
foreign Investments
Bank Balances and Deposits 54,865 47,311 6,721 5,864 61,586 53,175
Securities (including Treasury Bills, Bonds and Equities) 255,815 251,221 47,097 44,390 302,912 295,611
Other Foreign Investments 4,575 6,773 1,056 1,676 5,631 8,449
International Monetary fund (“IMf”) Assets 14.2
Reserve Tranche 2,079 2,175 – – 2,079 2,175
Special Drawing Rights (“SDRs”) 1,414 1,412 – – 1,414 1,412
Loans under New Arrangements to Borrow 21.1(c) 210 224 – – 210 224
Poverty Reduction and Growth Facility — Heavily Indebted Poor Countries 8 8 – – 8 8
Shareholding in Bank for International Settlements (“BIS”) 14.3 96 96 – – 96 96
foreign financial Assets 319,062 309,220 54,874 51,930 373,936 361,150
foreign Borrowings and Other liabilities 7,382 15,635 2,818 2,925 10,200 18,560
IMf SdR Allocations 1,413 1,412 – – 1,413 1,412
foreign financial liabilities 8,795 17,047 2,818 2,925 11,613 19,972
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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 2017 is SDR4.0 million [$7.7 million] (31 March 2016: SDR4.0 million [$7.7 million]), being the balance in Post-Special Contingent Account-2 with IMF which was transferred to the PRGF-HIPC on 24 April 2001 as an interest-free deposit maturing at the end of 2018.
14.3 Bank for International Settlements (“BIS”)
The Authority’s shareholding in the BIS comprises the 25% paid-up value of 4,285 (31 March 2016: 4,285) shares with a nominal value of SDR5,000 ($9,491) (31 March 2016: SDR5,000 [$9,488]) each.
15 OTHER ASSETS
These comprise the following:
in $ millions 2017 2016
Loans, Deposits and Other Receivables 6,839 6,630
Receivable from MAS Bills Issued – 4,293
Repurchase Agreements with Singapore Government 3,164 3,051
10,003 13,974
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notes to the consoliDateD financial statementsFor The Year Ended 31 March 2017
16 pROpERTY ANd OTHER fIxEd ASSETS
in $ millions
leasehold land Buildings
Building Improve- ments
Computer Hardware and Software
furniture, fixtures, Motor Vehicles and Other Equipment
work-in- progress Total
COST
As at 1.4.2015 48 171 107 128 28 24 506
Additions – – – 1 – 28 29
Disposals – – (1) (2) (4) – (7)
Transfers – – 14 11 4 (29) –
As at 31.3.2016 48 171 120 138 28 23 528
ACCUMUlATEd dEpRECIATION
As at 1.4.2015 18 92 94 91 27 – 322
Disposals – – (1) (2) (4) – (7)
Depreciation Charge 1 4 2 14 2 – 23
As at 31.3.2016 19 96 95 103 25 – 338
NET BOOK VAlUE AS AT 31.3.2016 29 75 25 35 3 23 190
COST
As at 1.4.2016 48 171 120 138 28 23 528
Additions – – – 1 – 26 27
Disposals – (1) (1) (1) (8) – (11)
Transfers – – 16 16 3 (35) –
As at 31.3.2017 48 170 135 154 23 14 544
ACCUMUlATEd dEpRECIATION
As at 1.4.2016 19 96 95 103 25 – 338
Disposals – – (1) (1) (8) – (10)
Depreciation Charge 1 4 4 16 2 – 27
As at 31.3.2017 20 100 98 118 19 – 355
NET BOOK VAlUE AS AT 31.3.2017 28 70 37 36 4 14 189
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notes to the consoliDateD financial statementsFor The Year Ended 31 March 2017
17 dEpOSITS Of fINANCIAl INSTITUTIONS
in $ millions 2017 2016
Banks 21,632 23,303
Finance Companies 352 381
Securities Companies 11 1021,995 23,694
International Financial Institutions 988 960
Foreign Central Banks and Others 2,044 2,169
25,027 26,823
Deposits from banks and finance companies in Singapore include the minimum cash balances maintained by banks and finance companies with the Authority as required under the Banking Act (Cap. 19, 2008 Revised Edition) and the Finance Companies Act (Cap. 108, 2011 Revised Edition) respectively. Deposits from securities companies represent statutory deposits from holders of capital markets services licences required under the Securities and Futures (Licensing and Conduct of Business) Regulations.
18 MAS BIllS, pROVISIONS ANd OTHER lIABIlITIES
18.1 As part of the Authority’s money market operations to manage the liquidity in the banking system, the Authority issues its own short-term bills.
18.2 Provisions have been made for contingencies under Section 6(2) of the Monetary Authority of Singapore Act (Cap. 186, 1999 Revised Edition). Other liabilities include borrowings from banks, borrowings under reverse repurchase agreements, creditors, Sukuk payable, accounts payable and accruals.
18.3 During the financial year ended 31 March 2017, SSPL, a wholly-owned subsidiary of the Authority, issued $140 million (2016: $140 million) Sukuk trust certificates with one year maturity and an income distribution rate of 0.94% (2016: 1.28%) 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 and provide a purchase undertaking of the property assets. The Authority will receive the consideration for the sale of the property assets from SSPL and make periodic payments to SSPL.
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19 AMOUNTS dUE TO SINGApORE GOVERNMENT
19.1 The amounts due to the Singapore Government comprise the following:
in $ millions 2017 2016
Amounts due to Singapore Government, arising from Repurchase Agreements 3,164 3,051
Balances and Deposits of Singapore Government 77,326 122,248
Contribution to Consolidated Fund 4,457 –
Return of Profit to Singapore Government 12,133 –
97,080 125,299
19.2 Contribution to the Consolidated Fund is in accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act (Cap. 319A, 2004 Revised Edition). The contribution is based on 17% (2016: 17%) of the net profit for the year, after offsetting the cumulative loss from previous financial years.
20 STATUTORY dEpOSITS Of INSURANCE COMpANIES, REMITTANCE lICENSEES ANd CApITAl MARKETS SERVICES lICENSEES
Statutory bank deposits, guarantees and Singapore Government bonds of insurance companies, remittance
licensees and capital markets services licensees, are retained by the Authority under the Insurance Act (Cap. 142, 2002 Revised Edition), the Money-changing and Remittance Businesses Act (Cap. 187, 2008 Revised Edition) and the Securities and Futures Act (Cap. 289, 2006 Revised Edition) respectively, and in the events specified, dealt with accordingly under the respective Acts.
21 COMMITMENTS
21.1 International Monetary fund (“IMf”)
a) On 15 December 2010, the IMF’s Board of Governors passed a resolution that would double the Fund’s total quotas and result in a major realignment of quota shares among members. In February 2016, Singapore paid up 25% of its full quota increase. As at 31 March 2017, the unpaid portion of the Singapore quota due to IMF under Section 4 of Article III of the Articles of Agreement is $5,328 million (31 March 2016: $5,328 million).
b) On 20 April 2012, the Authority announced that Singapore would make a bilateral contingent loan of US$4.0 billion ($5.6 billion) (31 March 2016: US$4.0 billion [$5.4 billion]) to the IMF as part of the broader international effort to boost IMF’s resources and strengthen global economic and financial stability.
c) As a participant in the IMF’s New Arrangements to Borrow (“NAB”), the Authority undertakes to provide a credit line in the event of a financial emergency as specified by the NAB. As at 31 March 2017, the loans granted by the Authority under the NAB totalled SDR111 million ($210 million) (31 March 2016: SDR118 million [$224 million]). The remaining undrawn credit is SDR538 million ($1,021 million) as at 31 March 2017 (31 March 2016: SDR531 million [$1,007 million]).
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d) In 2012, Singapore pledged to contribute its share of the profits from IMF’s gold sales to the Poverty Reduction and Growth Trust (“PRGT”), subject to necessary legislative amendments being made. Following amendments made to the Bretton Woods Agreement Act (Cap. 27, 2012 Revised Edition) that came into effect in October 2016, the Authority made the contribution amounting to SDR14.5 million ($27.9 million) to the PRGT in February 2017.
21.2 Bank for International Settlements (“BIS”)
The Authority has a commitment, amounting to SDR16.1 million ($30.6 million) as at 31 March 2017 (31 March 2016: SDR16.1 million [$30.6 million]), in respect of the uncalled portion of its shareholding in the BIS.
21.3 Repurchase Agreements with Central Banks and Monetary Authorities
The Authority entered into bilateral repurchase agreements totalling US$5,500 million ($7,685 million) (31 March 2016: US$5,500 million [$7,406 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 2017, there was no request for liquidity assistance from any counterpart.
21.4 Currency Swap Arrangements with Central Banks and Monetary Authorities
a) The Authority renewed the bilateral currency swap arrangement of CNY300 billion ($64 billion) with the People’s Bank of China for a further term of three years with effect from 7 March 2016. The arrangement allows the Authority to provide Chinese Yuan liquidity to financial institutions in Singapore for trade and financial stability purposes. As at 31 March 2017, the Authority has a currency swap of CNY10 billion ($2.0 billion) (31 March 2016: CNY10 billion [$2.1 billion]) with the People’s Bank of China.
b) The Authority signed a bilateral currency swap agreement of JPY1.1 trillion ($15 billion) with the Bank of Japan for a term of three years with effect from 30 November 2016. The arrangement allows the Authority to provide Japanese Yen liquidity to eligible Singapore financial institutions in support of their cross-border operations.
c) The Authority and the Bank of Japan, acting as the agent for the Minister of Finance of Japan, signed the third Bilateral Swap Arrangement for a term of three years with effect from 21 May 2015. Under the agreement, the Authority can swap Singapore dollars for US dollars up to US$3,000 million ($4,192 million), while the Bank of Japan can swap Japanese Yen for US dollars up to US$1,000 million ($1,397 million).
d) 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. In May 2012, the CMIM members agreed to strengthen the regional financial safety net and double the total size of the currency swap transactions with members to US$240 billion. The Authority’s commitment is US$9,104 million ($12,721 million) (31 March 2016: US$9,104 million [$12,259 million]) and the Authority can swap Singapore dollars for US dollars up to 2.5 times Singapore’s commitment.
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e) 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. In November 2015, the ASA was renewed for an additional two years up to 16 November 2017. Under this agreement, the Authority’s commitment is US$300 million ($419 million) (31 March 2016: US$300 million [$404 million]).
f) Aside from the CNY swap with the People’s Bank of China, there was no other drawdown of any of the currency swap arrangements in note 21.4, in the financial years ended 31 March 2016 and 31 March 2017.
21.5 liquidity loan facility The Authority entered into an agreement with the Singapore Deposit Insurance Corporation Limited
(“SDIC”) on 9 February 2012 where the Authority may provide the SDIC a contingent liquidity facility of up to $20 billion (31 March 2016: $20 billion), in the event a Deposit Insurance Scheme member fails and liquidity is needed for compensation payments to insured depositors. There was no request and drawdown on the facility in the financial years ended 31 March 2016 and 31 March 2017.
21.6 Capital Expenditure Commitments
Capital expenditure relating to fixed assets not provided for in the consolidated financial statements is as follows:
in $ millions 2017 2016
Amount contracted for 12 21
21.7 leases
a) Future minimum lease payments under non-cancellable operating leases are as follows:
in $ millions 2017 2016
Less than 1 year 1 2
1 to 5 years 1 2
2 4
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b) Future minimum lease rental receipts under non-cancellable operating leases are as follows:
in $ millions 2017 2016
Less than 1 year 7 7
1 to 5 years 8 7
15 14
22 fINANCIAl RISK MANAGEMENT
22.1 The Risk Committee, chaired by an independent Board Director, assists the Board of Directors in providing oversight and guidance over the management of risks assumed by the Authority. This encompasses the management of financial risks inherent in the Authority’s investment portfolios, amongst other organisational risks faced by the Authority.
22.2 The Risk Management Department provides senior management and the Risk Committee with regular reports of the risk profiles of the Authority’s investments. These reports cover risk measurement and analysis of the Authority’s investment portfolios. The department also formulates risk policies and controls, and performs independent risk monitoring of the portfolios in accordance with the stipulated investment guidelines.
22.3 Market Risk
a) Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices and includes currency, interest rate and other price risks.
i) Currency risk is the risk of loss on foreign assets and liabilities arising from changes in foreign exchange rates.
ii) Interest rate risk is the risk of loss arising from changes in market interest rates.
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 the establishment of investment risk tolerance and controls at both the aggregate and individual portfolio levels.
notes to the consoliDateD financial statementsFor The Year Ended 31 March 2017
90
Monetary authority of Singapore
22.4 Credit Risk
a) Credit risk is the risk of loss arising from a party’s failure to discharge an obligation under a financial contract and includes counterparty and issuer credit risk.
b) The Authority’s credit risks are managed by transacting with entities of acceptable creditworthiness within assigned limits. Credit risks are also mitigated by diversifying credit exposures across counterparties and issuers and through collateral arrangements with counterparties whom the Authority has signed the International Swaps and Derivatives Association (“ISDA”) Credit Support Annex.
c) The Authority manages issuer credit risk by imposing minimum credit rating requirements on the investment of fixed income securities. Single issuer limits are placed to control the credit exposure to any one issuer and to mitigate the extent of loss resulting from a default.
22.5 Country Risk
The Authority’s foreign assets are exposed to country credit risk arising from political, economic and financial events in the country of investment. Country limits are established to control the Authority’s credit risk exposure to individual countries.
22.6 liquidity Risk
Liquidity risk is the risk arising from the inability to sell a financial asset at close to its fair value at short notice due to inadequate market depth or market disruptions. The Authority manages liquidity risk by investing mostly in liquid financial instruments and markets, and imposing limits on investments to ensure sufficient diversification and through regular monitoring of the liquidity profile of the Authority’s investments.
23 RElATEd pARTY TRANSACTIONS
23.1 The Financial Sector Development Fund (the “Fund”) maintains a non-interest bearing current account with the Authority to facilitate grant disbursements. The Fund’s current account balance with the Authority as at 31 March 2017 was $0.1 million (31 March 2016: $0.7 million).
23.2 The Authority also accepted deposits from the Fund, in the ordinary course of business and at arm’s length, incurring interest expense disclosed below:
in $ thousands 2017 2016
Interest Expense 289 557
The Fund’s deposit balance with the Authority as at 31 March 2017 was $36 million (31 March 2016:
$nil million).
notes to the consoliDateD financial statementsFor The Year Ended 31 March 2017
91AnnuAl RepoRt
2016/17
24 SEGMENT REpORTING
Owing to their integrated nature, the Authority’s operations, including those of its subsidiary, SSPL, comprise one main operating segment only, i.e. the conduct of monetary policy, issuance of currency, management of the official foreign reserves and acting as the banker to and financial agent of the Government, for segment reporting purposes. In addition, the Authority’s operations are mainly in one geographical area, Singapore. All other segment information are below the quantitative thresholds for separate disclosure.
25 NEw OR REVISEd ACCOUNTING STANdARdS ANd INTERpRETATIONS
New or revised accounting standards and interpretations to existing standards have been issued that are relevant for the Authority’s accounting periods beginning after 1 April 2016 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 the Authority’s accounting periods beginning on or after 1 April 2017
Amendments to FRS 7 Statement of Cash Flows: Disclosure Initiative The amendments to FRS 7 require additional disclosures to enable the user of financial statements to evaluate
changes in liabilities arising from financing activities, such as providing a reconciliation between opening and closing balances in the balance sheet for liabilities arising from financing activities, and its link to the statement of cash flows.
Effective for the Authority’s accounting periods beginning on or after 1 April 2019
FRS 116 Leases
FRS 116 introduces a single lessee accounting model. A lessee is required to recognise a right-of-use asset (representing its right to use the underlying leased asset) and a lease liability (representing its obligation to make lease payments) for all leases with a term of more than 12 months, unless the underlying asset is of low value. Lessor accounting remains substantially unchanged and a lessor continues to account for its leases as operating leases or financial leases accordingly.
26 AUTHORISATION Of CONSOlIdATEd fINANCIAl STATEMENTS
The consolidated financial statements for the year ended 31 March 2017 were authorised by the Board of Directors for issuance and signed by Chairman and Managing Director on 22 June 2017.
notes to the consoliDateD financial statementsFor The Year Ended 31 March 2017
A. MONETARY STATISTICS94 A1. Money Supply95 A2. Official Foreign Reserves96 A3. Exchange Rates97 A4. Domestic Interest Rates
B. COMMERCIAL BANKS98 B1. Assets And Liabilities99 B2. Loans And Advances By
Industrial Classification100 B3. Types Of Loans And Advances To
Non-Bank Customers101 B4. Types Of Deposits Including
S$NCDS102 B5. Liquidity Position
C. FINANCE COMPANIES103 C1. Assets And Liabilities
D. MERCHANT BANKS104 D1. Consolidated Assets And Liabilities105 D2. Assets And Liabilities Of Domestic
Unit Operations
E. INSURANCE INDUSTRY106 E1. Assets And Premiums
F. NON-BANK FINANCIAL INSTITUTIONS107 F1. Central Provident Fund Board
G. DOMESTIC CAPITAL MARKET108 G1. Net Funds Raised In The Domestic
Capital Market
H. ASIAN DOLLAR MARKET109 H1. Assets And Liabilities110 H2. Maturity Transformation By Asian
Currency Units
KEY ECONOMIC INDICATORS:111 Key Economic Indicators
FINANCIAL STRUCTURE:114 Number of Financial Institutions in
Singapore
STATISTICAL ANNEXES
MoNETAry AuThorITy of SINgAporE
94
Monetary authority of Singapore
A.1
Mo
NE
TAr
y S
TATI
STI
CS
:
MO
NEY
SU
PP
LYS
$ M
illio
nM
arch
End
of P
erio
d20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
Mon
ey S
uppl
y (M
1)75
,703
.893
,472
.111
2,48
7.0
130,
591.
914
0,70
9.1
154,
597.
316
0,21
7.7
160,
445.
817
2,75
3.5
173,
952.
3
Cur
renc
y in
act
ive
circ
ulat
ion 1
18,9
97.4
20,2
16.5
22,2
99.5
24,6
90.3
26,3
61.3
28,8
51.6
31,5
06.9
34,0
42.3
38,5
25.0
38,9
82.1
D
eman
d de
posi
ts56
,706
.473
,255
.690
,187
.510
5,90
1.6
114,
347.
812
5,74
5.7
128,
710.
812
6,40
3.5
134,
228.
513
4,97
0.2
Q
uasi
-mon
ey25
7,70
7.3
277,
735.
829
0,60
9.1
312,
766.
233
4,68
3.4
341,
310.
535
2,21
3.1
359,
793.
938
9,33
3.9
399,
086.
0
Fi
xed
depo
sits
155,
121.
915
6,73
1.1
154,
417.
316
0,69
9.6
175,
270.
817
1,98
9.3
172,
712.
017
4,46
5.4
189,
277.
619
2,52
4.3
Sav
ings
and
oth
er d
epos
its10
2,56
7.4
121,
004.
713
6,17
1.8
151,
901.
615
9,32
2.4
168,
838.
417
9,11
0.3
184,
606.
519
9,72
9.2
206,
250.
8
S
$NC
Ds
18.0
0.0
20.0
165.
090
.248
2.8
390.
872
2.0
327.
131
0.9
Mon
ey S
uppl
y (M
2)33
3,41
1.1
371,
207.
940
3,09
6.1
443,
358.
147
5,39
2.5
495,
907.
851
2,43
0.8
520,
239.
756
2,08
7.4
573,
038.
3
Net
dep
osits
with
fina
nce
com
pani
es8,
976.
47,
318.
17,
013.
28,
308.
210
,522
.910
,992
.211
,735
.612
,704
.811
,818
.611
,706
.5
Mon
ey S
uppl
y (M
3)34
2,38
7.5
378,
526.
041
0,10
9.3
451,
666.
348
5,91
5.4
506,
900.
052
4,16
6.4
532,
944.
557
3,90
6.0
584,
744.
8
1
Figu
res
excl
ude
com
mem
orat
ive,
num
ism
atic
and
bul
lion
coin
s is
sued
by
the
Mon
etar
y A
utho
rity
of S
inga
por
e an
d c
ash
held
by
com
mer
cial
ban
ks a
nd o
ther
fina
ncia
l ins
titut
ions
.
The
Boa
rd o
f Com
mis
sion
ers
of C
urre
ncy,
Sin
gap
ore,
mer
ged
with
the
Mon
etar
y A
utho
rity
of S
inga
por
e in
Oct
ober
200
2.
95
AnnuAl RepoRt 2016/17
S$
Mill
ion
Mar
chE
nd o
f Per
iod
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Tota
l For
eign
Res
erve
s25
0,34
6.0
263,
955.
428
8,95
4.1
308,
403.
231
6,74
4.2
344,
729.
234
0,43
8.1
350,
990.
835
6,25
3.9
362,
802.
4
G
old
& F
orei
gn E
xcha
nge
249,
546.
126
1,37
4.6
286,
563.
330
5,58
9.5
313,
987.
334
1,73
4.8
337,
676.
134
8,42
0.5
353,
365.
836
0,08
1.9
R
eser
ve P
ositi
on in
the
IMF
255.
837
5.5
421.
01,
080.
81,
115.
81,
296.
71,
084.
185
2.6
1,44
1.7
1,30
6.7
S
peci
al D
raw
ing
Rig
hts
(SD
Rs)
544.
12,
205.
31,
969.
81,
732.
91,
641.
11,
697.
71,
677.
91,
717.
71,
446.
41,
413.
8
Tota
l For
eign
Res
erve
s (U
S$
mill
ion)
174,
196.
318
7,80
9.1
225,
754.
223
7,73
7.0
259,
307.
127
3,06
5.1
256,
860.
424
7,74
7.4
246,
575.
325
9,63
8.2
1 W
ith e
ffec
t fr
om M
ay 1
999,
the
boo
k va
lue
of fo
reig
n re
serv
e as
sets
are
tra
nsla
ted
at
mar
ket
exch
ange
rat
es p
reva
iling
at
the
end
of e
ach
rep
ortin
g m
onth
.
A.2
Mo
NE
TAr
y S
TATI
STI
CS
:
OFF
ICIA
L FO
REI
GN
RES
ERVE
S 1
96
Monetary authority of Singapore
S
$ P
er F
orei
gn C
urre
ncy
1st Q
trP
erio
d A
vera
ge20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
US
Dol
lar
1.41
481.
4545
1.36
351.
2579
1.24
971.
2513
1.26
711.
3748
1.38
151.
4160
100
Japa
nese
Yen
1.37
381.
5562
1.55
431.
5780
1.56
721.
2840
1.19
961.
1364
1.27
271.
2463
Eur
o2.
0771
2.02
421.
8095
1.74
951.
6071
1.66
211.
6837
1.52
671.
5286
1.50
88P
ound
Ste
rling
2.61
622.
2737
2.10
732.
0161
1.98
031.
9573
2.08
732.
1023
1.87
261.
7535
Sw
iss
Fran
c1.
3090
1.34
071.
3089
1.42
011.
3332
1.35
031.
3859
1.42
951.
4021
1.41
03A
ustr
alia
n D
olla
r1.
2016
1.14
731.
2524
1.29
711.
2940
1.21
071.
1431
1.03
391.
0272
1.07
3710
0 K
orea
n W
on0.
1306
0.11
430.
1180
0.11
350.
1109
0.11
440.
1204
0.12
150.
1190
0.12
3010
0 N
ew T
aiw
an D
olla
r4.
4874
4.40
234.
3292
4.27
984.
2262
4.21
554.
1812
4.32
984.
2831
4.55
97H
ong
Kon
g D
olla
r0.
1817
0.18
760.
1755
0.16
160.
1611
0.16
130.
1634
0.17
730.
1780
0.18
24M
alay
sian
Rin
ggit
0.42
470.
4126
0.42
340.
4111
0.40
460.
3973
0.38
730.
3534
0.33
330.
3184
Thai
Bah
t0.
0424
0.04
240.
0430
0.04
130.
0402
0.04
080.
0390
0.04
020.
0391
0.04
0310
0 In
done
sian
Rup
iah
0.01
470.
0140
0.01
500.
0143
0.01
330.
0120
0.01
070.
0103
0.01
040.
0106
Not
e: C
urre
ncie
s q
uote
d a
re t
hose
freq
uent
ly r
eque
sted
from
the
Aut
horit
y.
A.3
Mo
NE
TAr
y S
TATI
STI
CS
:
EXC
HA
NG
E R
ATES
97
AnnuAl RepoRt 2016/17
Per
Cen
t Per
Ann
um1s
t Qtr
Per
iod
Ave
rage
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Ban
ks1
Prim
e Le
ndin
g R
ate
5.38
5.38
5.38
5.38
5.38
5.38
5.35
5.35
5.35
5.28
Fixe
d D
epos
it R
ate
3-
mon
th0.
420.
290.
210.
170.
140.
140.
140.
170.
190.
15
6-m
onth
0.54
0.37
0.30
0.24
0.19
0.20
0.21
0.23
0.25
0.20
12
-mon
th0.
730.
560.
480.
400.
300.
320.
320.
330.
350.
33S
avin
gs D
epos
it R
ate
0.23
0.18
0.14
0.12
0.11
0.10
0.11
0.12
0.14
0.17
Fina
nce
Com
pani
es 2
Fixe
d D
epos
it R
ate
3-
mon
th0.
490.
290.
220.
160.
160.
190.
180.
220.
300.
30
6-m
onth
0.59
0.33
0.27
0.23
0.24
0.26
0.25
0.29
0.38
0.38
12
-mon
th0.
900.
620.
540.
500.
480.
530.
530.
550.
540.
50S
avin
gs D
epos
it R
ate
0.26
0.25
0.25
0.22
0.17
0.17
0.17
0.17
0.17
0.17
S$
SIB
OR
1-
mon
th1.
140.
440.
380.
300.
310.
320.
360.
810.
780.
72
3-m
onth
1.33
0.70
0.56
0.41
0.39
0.38
0.41
0.92
1.00
0.95
US
$ LI
BO
R
1-
mon
th2.
670.
330.
270.
230.
240.
190.
160.
200.
500.
83
3-m
onth
2.91
0.69
0.34
0.34
0.43
0.27
0.23
0.32
0.74
1.07
6-
mon
th3.
041.
120.
520.
510.
690.
410.
330.
481.
061.
37
1
Ave
rage
of 1
0 le
adin
g b
anks
.
2
Ave
rage
of a
ll fin
ance
com
pan
ies.
Not
e: I
nter
est
rate
s fo
r b
anks
(exc
ept
for
Prim
e Le
ndin
g R
ate)
and
fina
nce
com
pan
ies
refe
r to
ave
rage
of e
nd o
f mon
th r
ates
. N
ote:
Dom
estic
inte
rban
k ra
tes
have
bee
n d
isco
ntin
ued
with
eff
ect
from
1 J
anua
ry 2
014
and
rep
lace
d w
ith S
$ S
IBO
R. U
S$
SIB
OR
rat
es h
ave
bee
n al
so r
epla
ced
with
the
US
$ LI
BO
R, t
he m
ost
wid
ely-
used
US
$ in
tere
st r
ate
ben
chm
ark,
so
as t
o al
ign
with
the
larg
er g
lob
al U
S$
mar
ket.
A.4
Mo
NE
TAr
y S
TATI
STI
CS
:
DO
MES
TIC
INTE
RES
T R
ATES
98
Monetary authority of Singapore
S$
Mill
ion
Mar
ch
End
of P
erio
d20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
Ass
ets
Cas
h in
han
d1,
739.
82,
026.
82,
219.
92,
796.
42,
756.
02,
807.
52,
917.
14,
396.
2 3
,989
.1
3,9
82.3
B
alan
ces
with
MA
S13
,466
.013
,999
.915
,878
.717
,815
.319
,503
.332
,107
.020
,311
.622
,218
.5 2
1,96
7.4
21,
513.
3 S
$NC
Ds
held
0.0
0.0
0.0
9.9
201.
821
0.0
0.0
425.
0 9
.9
10.
1 A
mou
nts
due
from
ban
ks21
7,08
9.8
227,
923.
923
2,27
2.3
216,
223.
018
4,90
2.7
142,
986.
518
3,01
6.5
170,
139.
1 2
31,2
32.7
2
64,6
44.4
In S
inga
pore
52,5
72.1
57,1
88.2
77,9
72.8
58,8
57.6
44,0
59.5
27,6
01.4
32,3
91.8
26,9
60.5
45,
371.
3 6
1,71
7.4
A
CU
s73
,134
.587
,208
.069
,152
.162
,125
.144
,061
.629
,216
.846
,889
.151
,660
.2 6
4,02
7.0
79,
167.
2
Out
side
Sin
gapo
re91
,383
.283
,527
.785
,147
.495
,240
.396
,781
.586
,168
.310
3,73
5.6
91,5
18.4
121
,834
.4
123
,759
.8
Inve
stm
ents
98,7
15.0
122,
968.
013
0,08
1.3
137,
711.
515
3,31
8.2
167,
478.
718
4,96
0.5
194,
890.
5 2
02,2
56.1
2
09,3
87.8
In S
inga
pore
84,8
26.2
98,7
42.6
107,
526.
211
8,07
8.4
129,
130.
013
9,19
3.4
154,
168.
714
9,35
0.6
154
,208
.2
162
,702
.9
Gov
ernm
ent s
ecur
ities
66,6
96.1
81,3
18.8
84,8
53.4
91,4
17.5
98,4
22.4
98,2
13.9
107,
852.
911
2,64
8.2
114
,335
.5
123
,248
.4
Oth
ers
18,1
30.1
17,4
23.8
22,6
72.8
26,6
60.9
30,7
07.6
40,9
79.5
46,3
15.8
36,7
02.4
39,
872.
7 3
9,45
4.5
O
utsi
de S
inga
pore
13,8
89.0
24,2
25.6
22,5
55.2
19,6
33.2
24,1
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99
AnnuAl RepoRt 2016/17
S$
Mill
ion
Mar
chE
nd o
f Per
iod
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Agr
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, min
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260.
338
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33,5
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SS
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N
100
Monetary authority of Singapore
S$
Mill
ion
Mar
chE
nd o
f Per
iod
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Ove
rdra
fts10
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08,
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78,
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101
AnnuAl RepoRt 2016/17
S$
Mill
ion
Mar
chE
nd o
f Per
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2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Dem
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62,1
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100,
394.
212
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102
Monetary authority of Singapore
S$
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104
Monetary authority of Singapore
S$
Mill
ion
Mar
chE
nd o
f Per
iod
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Ass
ets
Am
ount
s du
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anks
32
,093
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4.7
2,56
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3,17
0.6
3,43
3.8
3,55
6.6
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13,8
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84.7
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32.8
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21,7
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23,4
51.1
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5,62
8.9
5,54
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7,88
9.8
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9.7
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Liab
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5.7
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3.6
12,1
68.2
12,3
81.3
12,5
60.9
13,0
24.6
13,5
66.2
14,0
17.9
Am
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s du
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ban
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35,6
98.1
37,9
63.7
51,2
64.3
46,9
28.5
55,0
45.1
51,6
58.0
63,1
12.6
70,5
28.6
61,8
56.6
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In
Sin
gapo
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0.7
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861
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Asi
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side
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on-b
ank
cust
omer
s22
,781
.323
,824
.021
,249
.122
,623
.417
,741
.813
,600
.612
,564
.713
,291
.212
,370
.211
,428
.0O
ther
liab
ilitie
s5,
679.
75,
711.
07,
736.
88,
315.
77,
456.
07,
305.
08,
018.
69,
738.
88,
095.
310
,467
.6
Tota
l Ass
ets/
Liab
ilitie
s72
,602
.376
,354
.489
,760
.387
,851
.192
,411
.084
,944
.996
,256
.810
6,58
3.3
95,8
88.3
96,9
36.3
1
Dat
a ar
e d
eriv
ed fr
om t
he c
onso
lidat
ion
of m
erch
ant
ban
ks’ d
omes
tic a
nd A
sian
dol
lar
oper
atio
ns.
D.1
ME
rC
hA
NT
BA
NK
S:
C
ON
SO
LID
ATED
AS
SET
S A
ND
LIA
BIL
ITIE
S 1
105
AnnuAl RepoRt 2016/17
S$
Mill
ion
Mar
chE
nd o
f Per
iod
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Ass
ets
Am
ount
s du
e fro
m b
anks
5,
323.
15,
528.
55,
886.
66,
718.
57,
564.
18,
105.
68,
288.
78,
065.
17,
842.
88,
010.
1
In S
inga
pore
1,26
1.8
1,48
8.4
2,25
4.6
2,56
7.0
3,10
9.2
3,41
4.5
3,47
8.1
2,80
0.0
2,89
0.8
3,19
8.9
A
sian
Cur
renc
y U
nits
3,06
2.9
2,98
8.7
2,36
8.8
2,53
9.6
2,89
4.1
3,52
0.2
4,06
3.2
4,55
8.0
4,30
9.3
4,26
3.8
O
utsi
de S
inga
pore
998.
41,
051.
31,
263.
21,
611.
91,
560.
81,
170.
974
7.3
707.
164
2.7
547.
3Lo
ans
and
adva
nces
to n
on-b
ank
cu
stom
ers
781.
784
5.6
1,91
7.8
1,66
0.0
1,73
8.0
1,47
5.6
1,42
8.6
1,43
4.1
902.
288
0.0
Sec
uriti
es a
nd e
quiti
es1,
221.
13,
067.
13,
024.
93,
043.
12,
663.
92,
388.
71,
977.
01,
740.
43,
363.
03,
609.
8O
ther
ass
ets
1,46
9.6
769.
060
1.1
715.
679
2.8
554.
956
5.4
839.
855
7.5
541.
0
Liab
ilitie
sC
apita
l and
rese
rves
3,26
2.9
3,13
8.4
3,56
4.6
3,21
9.2
4,02
5.9
3,44
0.8
3,03
2.0
3,70
1.4
3,46
2.2
4,36
9.2
Am
ount
s du
e to
ban
ks
3,64
7.8
6,03
9.7
6,45
3.8
7,43
9.2
7,31
8.0
7,63
9.8
7,70
9.2
6,97
2.4
7,89
8.4
6,95
9.0
In
Sin
gapo
re52
7.9
1,34
0.2
649.
255
3.3
578.
538
9.7
386.
650
0.1
1,40
2.9
1,28
4.1
A
sian
Cur
renc
y U
nits
1,48
2.4
1,94
8.4
2,79
6.1
3,46
2.1
3,05
0.0
4,94
1.8
6,06
7.7
5,34
6.4
5,56
5.4
5,08
8.9
O
utsi
de S
inga
pore
1,63
7.5
2,75
1.1
3,00
8.5
3,42
3.8
3,68
9.5
2,30
8.4
1,25
4.9
1,12
5.9
930.
058
6.1
Bor
row
ings
from
non
-ban
k cu
stom
ers
341.
631
8.2
360.
945
7.7
395.
333
2.2
297.
428
2.0
373.
436
7.3
Oth
er li
abili
ties
1,54
3.2
713.
91,
051.
11,
021.
21,
019.
51,
111.
91,
221.
11,
123.
693
1.6
1,34
5.4
Tota
l Ass
ets/
Liab
ilitie
s8,
795.
510
,210
.211
,430
.412
,137
.212
,758
.712
,524
.712
,259
.712
,079
.412
,665
.613
,040
.9
1
Cor
por
ate
finan
cial
ad
viso
ry s
ervi
ces,
und
erw
ritin
g ac
tiviti
es a
nd o
per
atio
ns in
the
gol
d m
arke
t ar
e no
t re
flect
ed in
the
dat
a.
D.2
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
1
106
Monetary authority of Singapore
S$
Mill
ion
Mar
ch20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
Tota
l Ass
ets
of In
sura
nce
Indu
stry
(E
nd P
erio
d)11
5,04
7.7
135,
801.
314
9,33
5.3
161,
114.
817
4,86
0.1
179,
692.
719
7,40
1.9
209,
581.
322
5,04
6.3
230,
342.
2
D
irect
Insu
rers
104,
487.
912
3,58
5.0
136,
028.
014
3,01
9.7
156,
802.
616
1,59
7.3
177,
415.
218
7,62
7.7
201,
583.
921
0,78
5.7
P
rofe
ssio
nal R
eins
urer
s8,
655.
29,
950.
410
,827
.615
,277
.215
,022
.114
,886
.316
,322
.218
,214
.519
,218
.219
,556
.5
Cap
tive
Insu
rers
1,90
4.6
2,26
5.9
2,47
9.7
2,81
7.9
3,03
5.4
3,20
9.1
3,66
4.5
3,73
9.1
4,24
4.2
N.A
.
Gen
eral
Bus
ines
s: G
ross
Pre
miu
ms 1
Tota
l Gen
eral
Bus
ines
s6,
829.
37,
436.
28,
580.
09,
820.
410
,416
.511
,102
.411
,768
.112
,996
.812
,843
.53,
134.
1
Dom
estic
Bus
ines
s2,
962.
52,
940.
83,
230.
63,
423.
63,
626.
73,
738.
13,
850.
53,
999.
13,
975.
01,
125.
8
Offs
hore
Bus
ines
s3,
866.
84,
495.
45,
349.
46,
396.
86,
789.
87,
364.
37,
917.
68,
997.
78,
868.
52,
008.
3
Life
Bus
ines
s: P
rem
ium
sP
rem
ium
s in
For
ce (E
nd P
erio
d)8,
347.
59,
719.
111
,374
.912
,412
.713
,663
.615
,073
.216
,587
.718
,862
.120
,668
.2 2
0,47
3.0
New
Bus
ines
s P
rem
ium
s
Ann
ual P
rem
ium
Pol
icie
s1,
459.
21,
840.
73,
014.
82,
466.
42,
453.
73,
114.
62,
812.
33,
652.
04,
134.
9 8
17.8
Sin
gle
Pre
miu
m P
olic
ies
Life
Insu
ranc
e8,
038.
26,
501.
67,
276.
77,
253.
46,
423.
67,
397.
19,
038.
110
,118
.610
,766
.7 3
,184
.4
Ann
uity
554.
218
9.4
152.
216
8.2
171.
136
.829
.316
.120
.7 6
.8
1 Fi
gure
s fo
r M
arch
201
4 d
oes
not
incl
ude
gene
ral c
aptiv
es a
nd m
arin
e m
utua
l ins
urer
s.N
.A: N
ot a
vaila
ble
E.1
IN
Su
rA
NC
E IN
Du
STr
y:
AS
SET
S A
ND
PR
EMIU
MS
107
AnnuAl RepoRt 2016/17
f.1
No
N-B
AN
K f
INA
NC
IAL
INS
TITu
TIo
NS
:
CEN
TRA
L P
RO
VID
ENT
FUN
D B
OA
RD
S$
mill
ion
1st Q
tr
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
**
Exc
ess
of c
ontr
ibut
ions
ove
r w
ithdr
awal
s9,
265.
19,
404.
412
,374
.214
,184
.814
,321
.613
,666
.812
,423
.313
,323
.917
,324
.75,
852.
7C
ontr
ibut
ions
(net
of r
efun
ds) b
y m
embe
rs1
20,2
32.3
20,1
24.9
21,9
92.7
24,6
28.4
26,0
48.4
28,5
30.0
29,7
22.1
32,0
49.1
35,8
51.7
10,3
51.4
With
draw
als
(net
of r
efun
ds) b
y m
embe
rs2
10,9
67.2
10,7
20.5
9,61
8.5
10,4
43.6
11,7
26.8
14,8
63.2
17,2
98.8
18,7
25.2
18,5
27.0
4,49
8.7
A
ppro
ved
hous
ing
sche
mes
35,
847.
05,
836.
54,
852.
76,
810.
97,
993.
78,
341.
49,
598.
310
,380
.510
,877
.42,
735.
2
Und
er S
ectio
n 15
and
Sec
tion
25 o
f
CP
F A
ct2,
799.
82,
622.
92,
628.
92,
909.
43,
112.
23,
967.
04,
265.
65,
155.
94,
920.
01,
321.
5
M
edic
al s
chem
es4
1,30
2.9
1,47
6.4
1,64
5.4
1,79
2.1
1,84
0.4
2,38
1.1
2,50
1.7
2,73
7.9
2,99
4.8
649.
6
Oth
ers
1,01
7.5
784.
749
1.5
-1,0
68.8
-1,2
19.5
173.
793
3.2
450.
9(2
65.2
)(2
07.6
)
Inte
rest
cre
dite
d to
mem
bers
5,45
5.1
6,09
2.6
6,70
9.8
7,47
2.7
8,29
0.6
9,14
4.2
9,97
1.9
10,8
34.5
12,0
48.2
3,23
2.0
Adv
ance
dep
osits
with
MA
S5
14,1
67.3
15,4
08.0
18,7
65.9
19,9
35.0
19,1
19.1
18,6
36.3
20,3
27.6
20,8
38.8
20,7
18.2
6,48
2.6
Inte
rest
ear
ning
s fr
om in
vest
men
ts6
5,65
1.4
6,27
6.3
6,97
8.9
7,79
2.7
8,64
6.9
9,57
1.6
10,4
81.3
11,4
45.5
12,8
24.6
3,42
3.5
Hol
ding
s of
Gov
ernm
ent S
ecur
ities
714
1,32
5.5
157,
446.
717
6,14
2.0
197,
245.
521
9,03
7.6
241,
428.
226
3,13
4.6
286,
792.
0 31
4,43
8.0
327,
510.
3M
embe
rs’ a
ccou
nts
151,
307.
116
6,80
4.0
185,
888.
020
7,54
5.5
230,
157.
725
2,96
8.6
275,
363.
929
9,52
2.4
328,
895.
333
7,98
0.0
Sou
rce:
Cen
tral
Pro
vid
ent
Fund
Boa
rd
1
C
ontr
ibut
ions
incl
ude
div
iden
ds
from
Sp
ecia
l Dis
coun
ted
Sha
res
and
Gov
ernm
ent
Gra
nts.
2
W
ithd
raw
als
incl
ude
tran
sfer
s to
/ fr
om R
eser
ve A
ccou
nt /
gen
eral
mon
eys
of t
he F
und
.3
A
pp
rove
d h
ousi
ng s
chem
es in
clud
e P
ublic
Hou
sing
and
Res
iden
tial P
rop
ertie
s sc
hem
es.
4
Med
ical
sch
emes
incl
udes
Med
isav
e, M
ediS
hiel
d L
ife, P
rivat
e M
edic
al In
sura
nce
and
Eld
erS
hiel
d s
chem
es.
5
Dep
osits
pla
ced
with
MA
S d
urin
g th
e ye
ar e
xclu
des
: a) i
nter
ests
on
bon
ds
& in
tere
st o
n A
dva
nce
Dep
osits
ret
aine
d a
s d
epos
its b
y M
AS
; and
b) c
onve
rsio
ns a
nd r
edem
ptio
ns o
f
Gov
ernm
ent
bon
ds.
6
Incl
udes
inte
rest
ear
ned
from
inve
stm
ents
hel
d in
fund
s th
at a
re a
dm
inis
tere
d b
y th
e C
PF
Boa
rd. T
his
incl
udes
the
Cen
tral
Pro
vid
ent
Fund
, Life
long
Inco
me
Fund
, Med
iShi
eld
Life
Fun
d,
Hom
e P
rote
ctio
n Fu
nd a
nd D
epen
dan
ts’ P
rote
ctio
n R
esid
ual F
und
.
7
Hol
din
gs e
xclu
de
adva
nce
dep
osits
with
MA
S.
**
P
rovi
sion
al fi
gure
s (u
naud
ited
)
108
Monetary authority of Singapore
S$
Mill
ion
1st Q
tr20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
A N
et fu
nds
rais
ed b
y G
over
nmen
t17
,526
.116
,793
.223
,742
.441
,075
.239
,864
.360
,985
.559
,242
.211
,581
.531
,564
.416
,554
.7
1) G
ross
issu
e of
Gov
ernm
ent
se
curit
ies 1
38,0
97.7
41,2
01.3
60,3
83.4
49,6
09.3
50,8
26.4
57,2
91.6
59,1
07.1
58,5
24.5
366,
295.
921
,844
.8
Less
:
Red
empt
ion
of G
over
nmen
t
se
curit
ies
21,8
98.7
21,1
80.0
36,5
89.0
23,8
15.5
25,5
15.5
28,2
93.8
30,3
09.5
24,6
67.0
323,
993.
93,
657.
8
C
onve
rsio
n fro
m a
ccum
ulat
ed
adva
nce
depo
sits
12,6
99.0
17,1
21.3
20,1
94.4
21,5
93.9
22,1
10.9
25,5
97.8
24,6
97.6
26,0
59.0
38,2
65.1
13,3
69.5
2)
New
adv
ance
dep
osits
13,5
26.1
15,1
64.2
18,4
02.4
19,2
80.2
18,2
84.3
18,5
45.5
20,2
46.2
20,6
83.0
20,6
67.5
6,47
2.2
3)
Net
issu
es o
f sta
tuto
ry b
oard
s’
se
curit
ies2
500.
0-1
,271
.01,
740.
017
,595
.018
,380
.039
,040
.034
,896
.0-1
6,90
0.0
6,86
0.0
5,26
5.0
B N
ew c
apita
l rai
sed
by th
e pr
ivat
e
se
ctor
9,83
9.0
24,4
52.8
12,6
73.4
16,8
87.8
6,01
9.8
13,7
67.1
11,2
98.6
7,30
7.6
8,07
1.6
2,14
0.5
1)
Pub
lic is
sues
of s
hare
s5,
538.
63,
209.
96,
744.
410
,420
.22,
315.
16,
315.
03,
522.
059
5.8
2,39
1.6
242.
8
2) R
ight
s is
sues
3,36
5.0
17,2
16.2
2,14
3.4
3,83
4.8
1,43
8.3
3,14
3.9
5,42
5.6
4,32
6.7
2,82
3.4
213.
3
3) P
rivat
e pl
acem
ents
of l
iste
d
sh
ares
935.
44,
026.
83,
785.
72,
632.
82,
266.
44,
308.
22,
351.
02,
385.
12,
856.
61,
684.
4
C I
ssue
s of
deb
t sec
uriti
es
15,4
94.3
15,3
20.5
25,8
80.7
24,8
00.7
32,7
80.8
25,4
99.5
26,0
25.3
26,6
75.9
21,6
06.1
5,63
1.0
1)
Lis
ted
bond
s, d
eben
ture
s an
d
lo
an s
tock
s 3
8,80
4.0
6,81
6.6
17,7
93.0
15,7
97.0
26,7
08.0
18,4
27.7
19,0
72.0
15,0
08.0
14,1
07.1
3,18
3.0
2)
Unl
iste
d bo
nds 4
6,69
0.3
8,50
3.9
8,08
7.7
9,00
3.7
6,07
2.8
7,07
1.8
6,95
3.3
11,6
67.9
7,49
9.0
2,44
8.0
Tota
l net
fund
s ra
ised
(A+B
+C)
42,8
59.4
56,5
66.5
62,2
96.5
82,7
63.7
78,6
64.9
100,
252.
196
,566
.145
,565
.061
,242
.124
,326
.2
1
G
over
nmen
t se
curit
ies
excl
udin
g tr
easu
ry b
ills.
2
Sta
tuto
ry b
oard
sec
uriti
es in
clud
ing
MA
S B
ills.
3
S
inga
por
e d
olla
r-d
enom
inat
ed b
ond
s lis
ted
on
the
Sin
gap
ore
Exc
hang
e (S
GX
).
4
Th
is in
clud
es b
ond
s th
at a
re n
ot li
sted
on
the
SG
X b
ut li
sted
on
othe
r ex
chan
ges.
g.1
Do
ME
STI
C 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
ET
109
AnnuAl RepoRt 2016/17
U
S$
Mill
ion
Mar
chE
nd o
f Per
iod
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Ass
ets
Loan
s to
non
-ban
k cu
stom
ers
214,
381.
921
9,61
4.4
268,
081.
731
2,81
4.0
340,
914.
040
0,59
7.0
433,
648.
440
7,96
8.8
388,
691.
840
4,99
9.7
Inte
rban
k fu
nds
498,
669.
646
0,72
6.4
501,
891.
452
8,82
3.2
562,
970.
661
4,64
5.6
569,
140.
453
6,72
6.3
540,
052.
057
1,24
5.5
In
Sin
gapo
re64
,140
.580
,941
.592
,715
.511
3,36
1.8
133,
171.
616
2,83
0.7
169,
487.
914
9,08
0.8
159,
717.
516
7,33
1.5
In
ter-
AC
U54
,620
.341
,678
.453
,762
.153
,383
.953
,768
.756
,274
.751
,138
.260
,510
.751
,000
.952
,045
.4
Out
side
Sin
gapo
re37
9,90
8.9
338,
106.
535
5,41
3.7
362,
077.
537
6,03
0.3
395,
540.
234
8,51
4.3
327,
134.
932
9,33
3.6
351,
868.
6N
CD
s he
ld1,
052.
51,
187.
71,
111.
368
6.1
1,74
5.6
4,88
3.3
7,31
2.6
6,74
8.1
7,18
0.2
8,28
8.5
Oth
er a
sset
s19
8,63
5.4
187,
871.
220
0,21
5.0
177,
209.
618
7,63
4.3
160,
248.
918
0,37
4.0
204,
379.
419
8,22
6.3
188,
339.
3
Liab
ilitie
sD
epos
its o
f non
-ban
k cu
stom
ers
262,
162.
126
9,37
0.2
273,
980.
329
6,37
6.6
327,
863.
536
5,14
1.3
393,
116.
839
5,07
0.2
393,
165.
240
9,61
8.0
Inte
rban
k fu
nds
523,
690.
550
2,23
2.6
584,
218.
259
9,56
8.3
628,
109.
064
8,17
0.8
615,
036.
257
4,72
3.1
558,
866.
358
8,12
5.7
In
Sin
gapo
re62
,600
.987
,208
.379
,206
.477
,629
.475
,466
.960
,529
.362
,608
.963
,393
.363
,113
.278
,698
.4
Inte
r-A
CU
54,8
48.7
41,7
78.1
53,8
12.3
53,6
03.0
53,9
34.8
56,2
61.1
51,7
21.6
60,5
95.7
51,8
07.1
52,7
71.2
O
utsi
de S
inga
pore
406,
240.
937
3,24
6.2
451,
199.
546
8,33
5.9
498,
707.
353
1,38
0.3
500,
705.
745
0,73
4.1
443,
946.
645
6,65
6.1
NC
Ds
issu
ed1,
593.
91,
416.
21,
780.
41,
686.
83,
572.
89,
916.
712
,682
.56,
538.
310
,149
.612
,157
.0O
ther
liab
ilitie
s12
5,29
2.9
96,3
80.6
111,
320.
512
1,90
1.2
133,
719.
315
7,14
6.0
169,
639.
917
9,49
1.0
171,
969.
216
2,97
2.3
Tota
l Ass
ets/
Liab
ilitie
s91
2,73
9.4
869,
399.
697
1,29
9.4
1,01
9,53
2.9
1,09
3,26
4.6
1,18
0,37
4.8
1,19
0,47
5.4
1,15
5,82
2.6
1,13
4,15
0.3
1,17
2,87
2.9
h.1
AS
IAN
Do
LLA
r M
Ar
KE
T:
A
SS
ETS
AN
D L
IAB
ILIT
IES
110
Monetary authority of Singapore
US
$ B
illio
nM
arch
End
of P
erio
d20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
Net
Pos
ition
1
Up
to 6
mon
ths
-169
.1-1
60.8
-178
.5-1
78.1
-154
.3-1
69.8
-179
.3-1
54.1
-165
.9-1
77.3
Ove
r 6 m
onth
s to
1 y
ear
21.7
15.6
28.7
33.3
20.4
28.1
25.8
16.1
8.9
23.4
Ove
r 1 to
3 y
ears
50.8
60.4
67.2
58.4
56.9
56.9
60.0
51.8
62.4
59.8
Ove
r 3 y
ears
83.4
73.0
79.6
75.3
67.8
76.3
79.5
70.5
80.9
80.7
Cla
ims 1
Up
to 6
mon
ths
570.
356
1.6
621.
964
2.1
701.
176
4.4
758.
773
4.9
720.
775
4.6
Ove
r 6 m
onth
s to
1 y
ear
52.4
42.6
54.4
68.0
65.2
78.2
75.0
74.0
67.3
77.4
Ove
r 1 to
3 y
ears
80.9
85.0
101.
910
9.5
115.
612
1.5
138.
813
6.4
127.
312
2.4
Ove
r 3 y
ears
117.
410
5.8
122.
412
6.8
129.
913
5.7
142.
813
4.0
143.
614
4.1
Liab
ilitie
s 1
Up
to 6
mon
ths
739.
472
2.4
800.
482
0.2
855.
493
4.2
938.
088
9.0
886.
693
1.9
Ove
r 6 m
onth
s to
1 y
ear
30.7
27.0
25.7
34.7
44.8
50.1
49.2
57.9
58.4
54.0
Ove
r 1 to
3 y
ears
30.1
24.6
34.7
51.1
58.7
64.6
78.8
84.6
64.9
62.6
Ove
r 3 y
ears
34.0
32.8
42.8
51.5
62.1
59.4
63.3
63.5
62.7
63.4
1
Dat
a ex
clud
e th
ose
clai
ms
or li
abili
ties
with
una
lloca
ted
mat
urity
per
iod
s. T
here
fore
the
sum
of a
ll th
e m
atur
ity c
ateg
orie
s fo
r cl
aim
s m
ay n
ot b
e eq
ual t
o th
e su
m o
f all
the
mat
urity
cat
egor
ies
fo
r lia
bili
ties.
h.2
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
111
AnnuAl RepoRt 2016/17
2012
2013
2014
2015
2016
Nat
iona
l Inc
ome
Agg
rega
tes
Gro
ss D
omes
tic P
rodu
ct
A
t Cur
rent
Mar
ket P
rices
(S$m
)36
1,36
5.9
378,
531.
6 39
0,44
7.7
408,
096.
6 41
0,27
1.9
G
row
th R
ate
(% c
hang
e)4.
2 4.
8 3.
1 4.
5 0.
5 A
t 201
0 M
arke
t Pric
es (S
$m)
355,
683.
1 37
3,47
1.5
386,
812.
9 39
4,28
8.6
402,
159.
8
Gro
wth
Rat
e (%
cha
nge)
3.9
5.0
3.6
1.9
2.0
Gro
ss N
atio
nal I
ncom
e A
t Cur
rent
Mar
ket P
rices
(S$m
) 34
8,07
5.6
366,
053.
2 38
0,42
3.3
389,
940.
7 39
7,15
2.7
G
row
th R
ate
(% c
hang
e)3.
2 5.
2 3.
9 2.
5 1.
8
Labo
ur F
orce
Une
mpl
oym
ent R
ate
(%)
2.0
1.9
2.0
1.9
2.1
Pro
duct
ivity
Gro
wth
(% c
hang
e)-0
.1
0.9
-0.2
-0
.2
1.0
Cha
nges
in E
mpl
oym
ent (
'000
) 12
9.1
136.
3 13
0.1
32.3
16
.8
Ave
rage
Mon
thly
Ear
ning
s (%
cha
nge)
2.3
4.2
2.3
3.5
3.7
Uni
t Lab
our C
ost (
% c
hang
e)3.
0 1.
2 3.
4 3.
6 2.
4
Sav
ings
and
Inve
stm
ent
G
ross
Nat
iona
l Sav
ings
(S$m
)
170,
774.
2 17
9,42
3.2
188,
879.
2 18
3,15
3.0
182,
033.
4 A
s %
of G
NI
49.1
49
.0
49.6
47
.0
45.8
G
ross
Dom
estic
Cap
ital F
orm
atio
n (S
$m)
107,
975.
2 11
5,39
6.3
111,
818.
6 10
9,24
6.7
103,
974.
5 A
s %
of G
NI
31.0
31
.5
29.4
28
.0
26.2
Bal
ance
of P
aym
ents
(S$m
)G
oods
Bal
ance
89,0
15.3
93
,877
.7
103,
533.
5 11
3,90
1.5
114,
373.
0 E
xpor
ts o
f Goo
ds55
3,40
3.7
560,
180.
1 56
0,88
0.7
521,
839.
0 49
9,53
9.8
G
row
th R
ate
(% c
hang
e)-0
.2
1.2
0.1
-7.0
-4
.3
Im
port
s of
Goo
ds46
4,38
8.4
466,
302.
4 45
7,34
7.2
407,
937.
5 38
5,16
6.8
G
row
th R
ate
(% c
hang
e)0.
4 0.
4 -1
.9
-10.
8 -5
.6
Ser
vice
s an
d O
ther
Bal
ance
s-2
6,21
6.3
-29,
850.
8 -2
6,47
2.9
-39,
995.
2 -3
6,31
4.1
KE
y E
Co
No
MIC
IND
ICAT
or
S:
112
Monetary authority of Singapore
2012
2013
2014
2015
2016
Bal
ance
of P
aym
ents
(S$m
) (co
nt’d
)C
urre
nt A
ccou
nt B
alan
ce62
,799
.0
64,0
26.9
77
,060
.6
73,9
06.3
78
,058
.9
As
% o
f GN
I18
.0
17.5
20
.3
19.0
19
.7
Cap
ital a
nd F
inan
cial
Acc
ount
Bal
ance
30,7
03.2
42
,423
.6
66,4
77.3
70
,808
.0
81,8
96.5
B
alan
cing
Item
510.
11,
127.
6-1
,965
.5-1
,597
.61,
382.
3O
vera
ll B
alan
ce32
,605
.9
22,7
30.9
8,
617.
8 1,
500.
7 -2
,455
.3
Offi
cial
For
eign
Res
erve
s31
6,74
4.2
344,
729.
2 34
0,43
8.1
350,
990.
8 35
6,25
3.9
Infla
tion
(% c
hang
e)C
onsu
mer
Pric
e In
dex
4.6
2.4
1.0
-0.5
-0
.5
GD
P D
eflat
or0.
4 -0
.2
-0.5
2.
6 -1
.4
Mon
etar
y A
ggre
gate
s (%
cha
nge)
M1
7.7
9.9
3.6
0.1
7.7
M2
7.2
4.3
3.3
1.5
8.0
M3
7.6
4.3
3.4
1.7
7.7
Inte
rest
Rat
es (p
erio
d av
erag
e, %
per
ann
um)
Prim
e Le
ndin
g R
ate
5.38
5.38
5.35
5.35
5.35
Ban
ks' 3
-mon
th F
ixed
Dep
osit
Rat
e0.
140.
140.
140.
170.
193-
mon
th S
$ S
IBO
R0.
390.
380.
410.
921.
003-
mon
th U
S$
LIB
OR
0.43
0.27
0.23
0.32
0.74
Exc
hang
e R
ates
(per
iod
aver
age,
S$
per)
US
Dol
lar
1.24
97
1.25
13
1.26
71
1.37
48
1.38
15
Pou
nd S
terli
ng1.
9803
1.
9573
2.
0873
2.
1023
1.
8726
E
uro
1.60
71
1.66
21
1.68
37
1.52
67
1.52
86
100
Japa
nese
Yen
1.56
72
1.28
40
1.19
96
1.13
64
1.27
27
Mal
aysi
an R
ingg
it0.
4046
0.
3973
0.
3873
0.
3534
0.
3333
KE
y E
Co
No
MIC
IND
ICAT
or
S (C
oN
T’D
):
113
AnnuAl RepoRt 2016/17
2012
2013
2014
2015
2016
Ban
king
and
Fin
ance
Com
mer
cial
Ban
ks' A
sset
s/Li
abili
ties
(S$m
)91
1,00
9.0
967,
814.
41,
055,
131.
11,
057,
520.
71,
146,
172.
0 G
row
th R
ate
(% c
hang
e)6.
46.
29.
00.
28.
4
Fina
nce
Com
pani
es’ A
sset
s/Li
abili
ties
(S$m
) 14
,967
.514
,985
.7 1
5,97
5.7
17,
409.
8 1
6,40
7.7
Gro
wth
Rat
e (%
cha
nge)
23.0
0.1
6.6
9.0
-5.8
Mer
chan
t Ban
ks’ A
sset
s/Li
abili
ties
(S$m
)92
,411
.084
,944
.9 9
6,25
6.8
106
,583
.3
95,
888.
3 G
row
th R
ate
(% c
hang
e)5.
2-8
.113
.310
.7-1
0.0
Asi
an C
urre
ncy
Uni
ts’ A
sset
s/Li
abili
ties
(US
$m)
1,09
3,26
4.6
1,18
0,37
4.8
1,19
0,47
5.4
1,15
5,82
2.6
1,13
4,15
0.3
Gro
wth
Rat
e (%
cha
nge)
7.2
8.0
0.9
-2.9
-1.9
Insu
ranc
eLi
fe In
sure
rs' A
sset
s/Li
abili
ties
(S$m
) 1
48,5
92.5
1
53,2
08.7
1
68,7
95.7
17
9,18
8.2
193,
428.
0 G
row
th R
ate
(% c
hang
e)11
.0
3.1
10.2
6.
27.
9
Gen
eral
Insu
rers
’ Ass
ets/
Liab
ilitie
s (S
$m)
26,
267.
6 2
6,48
4.0
28,
606.
2 30
,393
.131
,618
.3
Gro
wth
Rat
e (%
cha
nge)
-3.5
0.
8 8.
0 6.
24.
0
CP
FE
xces
s of
Con
trib
utio
ns O
ver W
ithdr
awal
s (S
$m)
14,3
21.6
13,6
66.8
12,4
23.3
13,
323.
9 1
7,32
4.7
Dom
estic
Cap
ital M
arke
t
Net
Fun
ds R
aise
d in
Dom
estic
Cap
ital M
arke
t (S
$m)
78,6
64.9
100,
252.
196
,566
.145
,565
.061
,242
.1
Not
e: D
omes
tic in
terb
ank
rate
s ha
ve b
een
dis
cont
inue
d w
ith e
ffec
t fr
om 1
Jan
uary
201
4 an
d r
epla
ced
with
S$
SIB
OR
. U
S$
SIB
OR
rat
es h
ave
bee
n al
so r
epla
ced
with
the
US
$ LI
BO
R,
the
mos
t w
idel
y-us
ed U
S$
inte
rest
rat
e b
ench
mar
k, s
o as
to
alig
n w
ith t
he la
rger
glo
bal
US
$ m
arke
t.
KE
y E
Co
No
MIC
IND
ICAT
or
S (C
oN
T’D
):
114
Monetary authority of Singapore
End
-Mar
ch20
0820
0920
1020
1120
1220
1320
1420
1520
1620
17
Ban
ks11
311
412
012
012
312
312
412
612
412
7Lo
cal 1
66
76
66
55
55
Fore
ign
107
108
113
114
117
117
119
121
119
122
Ful
l ban
ks24
2725
2626
2728
2828
29 W
hole
sale
ban
ks 2
4241
4650
5253
5556
5356
Offs
hore
ban
ks41
4042
3839
3736
3738
37(B
anki
ng o
ffice
s in
clud
ing
hea
d of
fices
and
mai
n of
fices
) (4
08)
(408
) (4
20)
(428
) (4
32)
(425
) (4
25)
(429
)(4
28)
(423
)
Asi
an C
urre
ncy
Uni
ts
158
161
162
163
165
161
159
160
155
156
Ban
ks11
111
211
711
712
012
012
112
312
212
5M
erch
ant b
anks
4749
4546
4541
3837
3331
Fina
nce
Com
pani
es
33
33
3
3
33
33
(Fin
ance
com
pani
es' o
ffice
s (3
9) (3
9) (3
9) (3
9) (3
9) (3
9) (3
9)(3
9)(3
9)(3
9) in
clud
ing
head
offi
ces)
Mer
chan
t Ban
ks49
5046
4746
4239
3834
32
Insu
ranc
e C
ompa
nies
151
158
158
157
164
168
177
181
186
186
Dire
ct in
sure
rs59
6264
6370
7279
8079
81P
rofe
ssio
nal r
eins
urer
s25
2726
2829
2831
3132
31A
utho
rised
rein
sure
rs5
66
66
66
65
4C
aptiv
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sure
rs62
6362
6059
6261
6470
70
Insu
ranc
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roke
rs65
6663
6467
6971
7475
77
Rep
rese
ntat
ive
Offi
ces
4536
3237
3840
3738
4043
Ban
ks45
3630
3436
3836
3739
42M
erch
ant b
anks
--
--
--
--
--
Insu
ranc
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--
23
22
11
11
fIN
AN
CIA
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Tru
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rE
:
NU
MB
ER O
F FI
NA
NC
IAL
INS
TITU
TIO
NS
IN S
ING
AP
OR
E
AEOI Automatic Exchange of Information
AML/CFT Anti-Money Laundering and Countering the Financing of Terrorism
AMRO ASEAN+3 Macroeconomic Research Office
API Application Programming Interface
ASEAN Association of Southeast Asian Nations
ASEAN+3 ASEAN plus China, Japan and South Korea
BCBS Basel Committee on Banking Supervision
CA Cooperation Agreement
CPMI Committee on Payments and Market Infrastructures
CPI Consumer Price Index
EUR Euro
FATF Financial Action Task Force
FinTech Financial Technology
FSB Financial Stability Board
FY Financial Year
G20 Group of Twenty
GBP British Pound
GDP Gross Domestic Product
IOSCO International Organisation of Securities Commissions
JPY Japanese Yen
MOU Memorandum of Understanding
OTC Over-the-Counter
PFMI Principles for Financial Market Infrastructure
RMB Renminbi
S$NEER Nominal Effective Exchange Rate
SGD Singapore Dollar
SGX Singapore Exchange
USD United States Dollar
y-o-y Year-on-Year
glossary
115
Monetary authority of Singapore
10 Shenton WayMAS Building
Singapore 079117www.mas.gov.sg