We thank Mr 翁益华 for the suggestions in his letter (“5分钱硬币为何遭拒收?”, 14 Jul) about the use and acceptance of 5-cent coins.

2 We would like to assure Mr 翁益华 that there remains a use for 5-cent coins in Singapore. Supermarkets for example continue to mark prices up to 5 cents and may charge 5 or 10 cents for each plastic bag, and accept such coins for payment. MAS will continue issuing 5-cent coins to meet demand and will monitor its relevance in the longer-term.

3 We understand Mr 翁益华’s frustration that some merchants do not accept 5-cent coins. Under the Currency Act, merchants are allowed to decide if they do not wish to accept certain coins for payment but must put up a written notice to inform customers. In making this decision, merchants would balance several factors, including the impact to customers, the value of the transaction and the cost of handling coins. We can understand that merchants will want some flexibility to manage their coin handling costs. Customers have the ultimate discretion whether to give their business to a particular merchant.

4 More information on what legal tender means can be found at https://www.mas.gov.sg/currency/What-is-Legal-Tender .

Charlene Chew
Head (Corporate Communications)
Monetary Authority of Singapore