Monetary Authority of Singapore Annual Report 2008/2009

Chairman's Message	04
Board Of Directors	06
Board Committees	08
Management Team	09

OUR WORK-Managing Risks, Emerging Stronger

TUMULTUOUS YEAR FOR THE GLOBAL ECONOMY	12
Contraction of Developed Economies	12
Slowdown in Asia ex-Japan	12
Easing of Inflationary Pressures	13
Singapore's GDP Growth Weakened Sharply	13

MONETARY POLICY	17
Box Story 1: Regional Trade and Production Networks	18

AN UNPRECEDENTED CRISIS	19
Global Financial System in Downward Spiral	19
Governments and Central Banks Respond	20
Singapore Money Markets: Increased Vigilance	22
Liquidity Management	23
Expanded Access to the Standing Facility	23
US Dollar Swap Facility	23
Implications for Asia	23
International Cooperation to Address Financial Crisis	24

INTEGRATED APPROACH TO FOSTER SAFETY AND SOUNDNESS OF
FINANCIAL INSTITUTIONS AND FINANCIAL SYSTE	24
Financial System Surveillance	24
Intensified Prudential Supervision of Financial Institutions	25
Financial Impact of Crisis and Lessons Learnt	26
Box Story 2: Singapore Government Guarantee on Deposits	27
Cooperative Oversight Arrangement for Continuous Linked Settlement System	27
Quarterly and Semi-Annual Statements of Retail Payment Statistics	27
Tax Concessions for Loan Impairment Provisions Extended	28
Legislative Amendments to Securities and
Future Act (SFA) and Financial Advisors Act (FAA)	28
Dealing with Investor Concerns on Structured Products	29
Letters to CEOs of Financial Institutions	31
Enhancing Market Discipline	31
Enhancing Corporate Governance of Listed Companies	32

BUILDING ON OUR FUNDAMENTALS, PREPARING FOR THE UPTURN	33
Singapore's Strong Foundamentals	33
Box Story 3: Singapore Dollar Sukuk Facility	34
Financial Talent Development	34
Financial Knowledge, Innovation and Learning	34
Box Story 4: Investment in Talent Infrastructure	35

ENHANCING OPERATIONAL CAPABILITIES AND RESILIENCE	36
Business Continuity Management	36
Enhancing Assurance	36
Enhancing Operational Capabilities Through IT	36
Box Story 5: Swift Action to Counter Influenza A(H1N1)	37

CURRENCY AND PAYMENT SYSTEM	38
Managing Dollars and Cents	38
Payment System	38

OUR PARTNERS-Building Ties, Valuing Partnerships

WORKING WITH CENTRAL BANKS AND FELLOW REGULATORS	42
Participation in Multilateral Institutions	42
Regional Cooperation on Financial Initiatives	43
ASEAN Capital Markets Development and Integration	43
Multilateralisation of the Chiang Mai Initiative	44
Executives' Meeting of East-Asia Pacific Central Banks (EMEAP)	44
Bilateral Meeting with Bank Indonesia	44
Engagement with Middle East	44
Box Story 6: 6^th Islamic Financial Services Board Summit in Singapore	45

WORKING WITH INDUSTRY	46
Financial Sector Industry-wide Exercise 2008 (Ex Raffles II)	46
Partnerships with Academia	46
Box Story 7: MAS Term Professorship Programme
at the National University Of Singapore	47
Box Story 8: Improving Individual Investors' Access to
Singapore Government Securities (SGS) and Treasury Bills (T-Bills)	48
Institute of Banking and Finance Annual Conference	49
Box Story 9: MoneySENSE-Reaching Out to
More Singaporeans Amidst the Financial Crisis	50
Financial Conferences and Events	52

OUR PEOPLE-Growing Expertise, Grooming Leaders

BUILDING HIGH PERFORMANCE TEAMS	56
Expertise Development	56
MAS Academy	56
Professional Requisites and Outcomes Framework	56
Leadership Development	57
Coaching	57
Young Professionals Programme	57
Middle Management Programme 2	57
Box Story 10: Recognising Professional Excellence:
Financial Industry Certified Professional (FICP)	58
Engaging Staff	59
Work-Life Effectiveness Initiatives	59
"Frequent Flying Minds"	59
Leadership Community Retreat	59
MAS Staff Seminar 2009	59
Recognising Our People	60
Service Appreciation Awards	60
Innovation Awards	60
National Day Awards	60
Excellent Service Awards	61
PS21 Star Service Awards	61

FOSTERING CLOSER TIES	62
Inter-Group Games 2009	62
Family Day 2009	62

REACHING OUT TO THE COMMUNITY	63
Charity Drives - MAS With A Heart	63

FINANCIAL STATEMENTS	66

Highlights	66
Statement by Directors	67
Auditor's Report	68
Income Statement	70
Balance Sheet	71
Statement of Changes in Equity	72
Cash Flow Statement	73
Statement of Backing of Currency in Circulation	74
Notes to the Financial Statements	75

KEY ECONOMIC AND FINANCIAL STATISTICS	96

STATISTICAL ANNEX	100
A. MONETARY STATISTICS	100
B. FINANCIAL STRUCTURE	104
C. COMMERCIAL BANKS	106
D. FINANCE COMPANIES	111
E. MERCHANT BANKS	112
F. INSURANCE INDUSTRY	114
G. NON-BANK FINANCIAL INSTITUTIONS	115
H. DOMESTIC CAPITAL MARKET	116
I. ASIAN DOLLAR MARKET	117

GLOSSARY	120

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28

33

36

38

42

46

56

FOSTERING CLOSER TIES

62

REACHING OUT TO THE COMMUNITY

63

66

96

100

120