The Monetary Authority of Singapore (MAS) will need the optimal blend of creativity and caution to face new challenges as well as create opportunities for Singapore's financial sector and economy, says Prime Minister Lee Hsien Loong.
Speaking at the MAS Partners Appreciation Evening in conjunction with the regulator’s golden jubilee, Lee says the challenges and opportunities include emerging disruptive technologies such as artificial intelligence and technology, aside from new business models such as decentralised finance.
The MAS has played a major role in Singapore’s economic and financial development, says Lee. “Its monetary policies and management of official reserves have sustained macroeconomic stability and confidence in Singapore. Its regulation and supervision of financial institutions have created a safe and internationally trusted financial system; and its development strategies have made the financial sector an engine of growth, attracting investments and creating many good jobs,” says Lee.
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He adds that MAS’ approach of marrying caution with creativity and its close cooperation with the industry and public sector partners has delivered economic and financial results for Singapore. To this end, Lee provides five key examples.
First is the launch of the Asian Dollar Market in 1968; followed by the adoption of an exchange rate-centred monetary policy framework in 1981; the new approach to supervising and developing the financial sector from 1998 onwards; the use of macroprudential measures from the late 2000s to stabilise the property market; and finally, the decisive move to become a Smart Financial Centre and leading fintech hub since 2015.
“These examples also remind us that behind MAS’ success lies a story of partnership and trust, forged with the industry and stakeholders over 50 years. This partnership and trust will become more critical and relevant than ever.
“It is therefore fitting that, to celebrate its half century, MAS is showing appreciation for key partners who have worked alongside it all these years,” says Lee.
Meanwhile, MAS managing director Ravi Menon says the central bank hopes to push the boundaries of innovation to make finance more inclusive, sustainable and more purposeful while not sacrificing safety.
“MAS has always believed that working with the industry, rather than against it, is the best way to achieve our shared objectives, keeping the system safe and growing the business,” says Menon.
MAS awarded 17 key industry partners and organisations at the event. The awardees include the Institute of Banking & Finance Singapore, The Association of Banks in Singapore, Singapore Foreign Exchange Market Committee, Life Insurance Association Singapore and Investment Management Association of Singapore, among others.
Additionally, MAS also launched a book titled “Resilience, Dynamism, Trust: 50 Landmark Statements by MAS Leaders” . The compendium of key speeches and statements by MAS leaders over the past 50 years traces the development of MAS’ policies and strategies as a central bank, integrated financial regulator and promoter of Singapore as an international financial centre.
