The Monetary Authority of Singapore (English: Monetary Authority of Singapore, abbreviated as MAS;
Malay: (Penguasa Kewangan Singapura) is the central bank of Singapore, established in 1971, overseeing a range of financial functions from banking to finance. Since its establishment, financial operations have been executed and professionally managed by government departments.
As Singapore continued to develop, the increasing demand for more complex banking operations and financial environments forced the nation to reform its financial functions, allowing for greater development momentum and consistent financial policies. Therefore, in 1970, Parliament passed the "Monetary Authority of Singapore Act (MAS Act)" which led to the establishment of MAS on January 1, 1971.
The Act grants MAS the authority to manage all financial, banking systems, and finance-related affairs in Singapore. MAS is also empowered to formulate regulations concerning bankers and even government financial departments, and it is tasked with enhancing financial stability; establishing credit and exchange policies, and promoting economic growth.
However, unlike many other central banks, such as the Federal Reserve System in the United States or the Bank of England, MAS does not control financial markets by adjusting interest rates. Instead, it manages the Singapore dollar market through foreign exchange mechanisms.
In April 1977, the government decided to introduce "Industrial Insurance" management, placing it alongside MAS in a parallel structure. Its management functions are based on the "Industrial Safety Act (1973)" and were integrated into the MAS system in September 1984.
MAS now oversees many regulations, including currency, banking systems, insurance, securities, and every financial sector. Subsequently, on October 1, 2002, with the merger of the Currency Commissioner’s Office, MAS also assumed the responsibility for issuing currency.
