Government Debt

The Monetary Authority of Singapore (MAS) issues government securities on behalf of the Government. These securities are generally issued via auction and according to the issuance calendar set by MAS.

Corporate Debt

MAS requires corporate issuers to file a prospectus and follow procedures outlined in the Securities and Futures Act of 2001. For corporate bonds that have been or will be offered through a securities exchange, a copy of the prospectus and a credit rating (if applicable) must be lodged and registered with MAS.

Foreign Debt

Bond issuance by foreign entities is governed by MAS Notice 757, a policy that maintains the non-internationalization of the SGD.

Asset-Backed Securities

MAS also provide policies to banks undertaking a role in securitization transactions. Participating banks must obtain prior approval from MAS, and follow a set of procedures such as filing for disclosure and separation requirements. MAS requirements vary depending on the bank's role in the securitization transaction. Full details are provided at the websites linked below.

The Monetary Authority of Singapore (MAS) regulates most aspects of financial licensing. A detailed list of rules and regulations governing each class of participant is included.

MAS issues conduct guidelines for financial advisers to ensure professional standards are upheld and to enhance confidence in the industry. While no official codes of conduct exist for representatives of other financial sectors, MAS expects all market participants to follow Banking Act provisions pertaining to conduct in areas such as money laundering, confidentiality and conflict of interest.

Accounting Standards

The Accounting Standards Council (ASC) provides reporting standards for recognition and measurement of financial instruments (FRS 39). They closely follow International Accounting Standards (IAS). Adoption of fair value accounting standards for financial instruments began in January 2005.

Financial instruments classified as held-for-trading and available-for-sale are measured at fair value; held-to-maturity investments are measured at amortized cost applying the effective interest method. Unrealized gains and losses on the fair value changes are reflected in financial statements. A detailed description of classifying and recording securities on the balance sheets can be found through the ASC website link below.

Asset valuation of an insurance fund must comply with the accounting standards set by ASC apart from a separate regulation administered by the Monetary Authority of Singapore (MAS). Refer to the regulations on Insurance Valuation and Capital, which are linked below, for more detail.

Investment Funds

Investment fund managers are required to value the units of a scheme each business day. The net asset value (NAV) of assets is computed using market quotations and fair value. Quotes should be based on the official closing price or the last known transacted price on the securities exchange or the over-the-counter (OTC) market on which the securities are traded. If prices are not representative or available, the manager is responsible for determining the fair value of securities, which is the price that the scheme would reasonably expect to receive upon current sale of the asset.

Market practices for derivatives and hedging instruments are also detailed in the Code on Collective Investment Scheme.

Capital Adequacy Regulations

Financial institutions are subject to a capital adequacy requirement issued by the Monetary Authority of Singapore (MAS) under Notice 637, where banks must satisfy risk-based capital requirements that involve mark-to-market practices. Capital adequacy regulations issued in Singapore are moving towards compliance with Basel II standards.

Singapore’s qualifying debt securities (QDS) scheme grants concessionary tax treatment to investors of securities covered by the scheme. QDS are debt securities, including Singapore Government Securities (SGS), that meet the conditions set out in S13 (11) of the Income Tax Act, Income Tax (Qualifying Debt Securities) Regulations 2001, and MAS Circular No. FDD Cir 01/2003. Interest income earned by nonresidents from QDS is exempt from withholding tax. A 10% concessionary tax is granted on interest income earned by financial institutions. No stamp duties apply for securities. Details on tax provisions specific to debt and derivative instruments in the Singapore market can be found by following the links provided below.

A matrix of the taxation for different types of bonds is also provided in the table below.