The Monetary Authority of Singapore (MAS) is responsible for most aspects of financial regulation. As the fiscal agent of the Government, it is responsible for the issue and management of securities on behalf of the Government. MAS monitors specific securities markets such as government securities funds, treasury bills, corporate bonds, asset-backed securities, and the repurchase market. It is also the reporting agency for all financial markets and collects and distributes a range of market activity data, including benchmark issue prices, turnover, and outstanding issues. MAS also determines and monitors currency exchange regulations.

MAS regulates the trading and bond exchanges pursuant to the Securities and Futures Act and Singapore Government Securities Act. MAS issues specific guidelines—including membership, registration, and trading of Singapore Government Securities (SGS); registration of traders; and reporting of information.

The Singapore Exchange Derivatives Trading Division (SGX-DT) oversees the development and regulation of derivatives trading on the exchange, which includes trading of the 5-year Singapore Government Bond futures contract and the short-term Singapore dollar interest futures contract.

The Ministry of Finance oversees taxation. However, MAS records some specific instances of tax incentives for financial instruments (refer to the Taxation below for more detail).

The Accounting Standards Council (ASC) oversees accounting standards, corporate governance, and disclosure requirements; and the Singapore Institute of Directors (SID) is a self-regulating association that provides standards and education on corporate governance issues.

Implementation of Monetary Policy

The Monetary Authority of Singapore (MAS) operates an exchange rate-centered monetary policy rather than interest rates as a monetary tool. This policy aims to ensure price stability for sustainable economic growth. MAS also conducts money market operations to ensure sufficient liquidity in the banking system and to meet banks' demands for reserve and settlement balances. These include: (i) Singapore Government Securities (SGS) repurchases and reverse repurchases, (ii) foreign exchange swaps and, (iii) direct lending and borrowing.

Financial Indicators and Stability

The key financial indicators in Singapore are the three-month Singapore Interbank Offered Rate (SIBOR) and the prime rates offered by the main local banks. SIBOR, the equivalent of the London Interbank Offered Rate (LIBOR), is the daily reference rate at which banks offer to lend unsecured funds to one another.

SIBOR is also widely used for USD loans among interbank participants in Asian time zones. It is collated by the Association of Banks in Singapore.

The Monetary Authority of Singapore (MAS) publishes the domestic Singapore dollar interbank rates for tenors from overnight to 12 months, including the Singapore Government Securities (SGS) repurchase overnight rate. MAS has implemented strategies to enhance Singapore’s standing as a financial center in Asia. Through the Financial Stability Review,

MAS analyses the risks and vulnerabilities arising from developments in Singapore and in the global economy, and assesses the implications for the soundness and stability of the financial system.

The Monetary Authority of Singapore (MAS) is legislated as the fiscal agent of the Government under the MAS Act. It estimates and proposes annual Singapore Government Securities (SGS) issuance amounts at the beginning of the year for the approval of the Minister for Finance. Since the Government does not require deficit funding, issuance is based on market developments.