Singapore's Payment Systems Successful in Global Test

Singapore, 16 June 1999...Singapore successfully completed its part in the Global Payment Systems Test (GPST) initiated by the New York Clearing House (NYCH) on 13 June 1999. This is a global test involving 34 national and international payments systems and networks to demonstrate the safe transfer of funds across the world for the Year 2000.

"This is a significant milestone in our preparations for year 2000. We are very pleased that our part in the GPST was a success as this indicates that Singapore's financial sector should be Y2000 ready in the next millennium. But more importantly, this is a demonstration that the global payments system should be prepared for Y2000," said Mr Tharman Shanmugaratnam, Chairman of the Financial Sector Y2000 Steering Committee.

Over 530 banks and financial institutions from 20 countries across the world took part in the GPST. The test allowed comprehensive transaction processing in a Year 2000 global environment for cross-border foreign exchange transactions. It validated message types such as money transfers and foreign exchange within country-specific systems and across countries.

In Singapore, nearly 30 banks and financial institutions, including all the local banks, participated in the GPST. This is to ensure that interbank payments between Singapore and the other major financial centres will function normally at the turn of the century. In total, 774 foreign exchange messages were sent and received, while 110 Singapore dollar interbank funds transfers were made. All the banks and financial institutions reported that their test transactions proceeded smoothly and no problems were encountered.