Lawrence Wong on Monetary Authority of Singapore (Amendment) Bill
When the Monetary Authority of Singapore (MAS) has Official Foreign Reserves (OFR) above what it needs to conduct monetary policy and ensure financial stability, it transfers the excess to the Government for longer-term management by sovereign wealth fund GIC. A new mechanism to facilitate this is provided for in a Bill put up for debate in Parliament on Tuesday (Jan 11). It empowers MAS to subscribe to Reserves Management Government Securities (RMGS) issued by the Government. Finance Minister Lawrence Wong explained how this would work. He also outlined safeguards to ensure that RMGS cannot be used for Government spending and that MAS will continue to have access to the transferred OFR to support its ability to fulfil its mandate.
When the Monetary Authority of Singapore (MAS) has Official Foreign Reserves (OFR) above what it needs to conduct monetary policy and ensure financial stability, it transfers the excess to the Government for longer-term management by sovereign wealth fund GIC. A new mechanism to facilitate this is provided for in a Bill put up for debate in Parliament on Tuesday (Jan 11). It empowers MAS to subscribe to Reserves Management Government Securities (RMGS) issued by the Government. Finance Minister Lawrence Wong explained how this would work. He also outlined safeguards to ensure that RMGS cannot be used for Government spending and that MAS will continue to have access to the transferred OFR to support its ability to fulfil its mandate.
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