16 February 2012

The Editor
ST Forum

I refer to Mr Wong Kam Wah’s letter (“Five cents - MAS could consider stopping circulation”, ST Forum, 15 February 2012).

Under the Currency Act, merchants in Singapore have to accept five-cent coins issued by the Monetary Authority of Singapore (MAS) for any payment not exceeding S$2. A merchant who is not able to accept a particular denomination of notes or coins is required to put up written notices on his premises to state so. Anyone who encounters difficulty using any particular denomination of notes or coins can contact MAS with details of the merchant to enable us to advise the merchant of his obligations.

MAS has considered the feasibility of taking five-cent coins out of circulation.  The demand for the coins, which has increased from a monthly average of 3 million pieces in 2006 to 5 million pieces in 2011, and their usage frequency would be considered in deciding whether to withdraw them from circulation.  

Angelina Fernandez
Director (Communications)