Financial Structure and Monetary Policy in Singapore

  • S. Y. Lee
  • Y. C. Jao
Chapter

Abstract

In colonial times, Malaya and Singapore were one country. Singapore was the international port for the hinterland of Malaya. Hence the monetary and banking frameworks of Malaysia and Singapore were very much related, as they were originally of the same historical development. Banks operated in both countries; and many banking laws and regulations in Singapore have been the ‘follow-up’ of the common tradition.

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Notes and References

  1. 2.
    For a discussion of the causes and effects, see Lee Sheng-yi, The Monetary and Banking Development of Malaysia and Singapore (Singapore University Press, 1974), Chapter 10, pp. 222–2.Google Scholar
  2. 4.
    See Lee Sheng-yi, Pulic Finance and Public Investment in Singapore (Institute of Banking and Finance, 1978), Chapter 6.Google Scholar
  3. 5.
    For a list of financial institutions as in May 1980, see MAS, The Financial Structure of Singapore, 1980 (revised edition) pp. 85–94; and also Lee Sheng-yi, ‘Financial Structure and Recent Development of Banking in Singapore’, The Credit Journal, December 1978.Google Scholar
  4. 7.
    See Singapore Currency Board Annual Reports, 1968 and 1969; and Lee Sheng-yi, The Monetary and Banking Development of Malaysia and Singapore pp. 237–10.Google Scholar
  5. 23.
    The percentages are derived from the assets and liabilities of finance companies, as stated in the Monetary Authority of Singapore, Annual Reports, 1972–1979/80.Google Scholar
  6. 25.
    For the main application of deposit funds, the number of savings accounts and the progress of POSB, see Post Office Savings Bank, Annual Report, 1979–80Google Scholar
  7. and Monetary Authority of Singapore, Annual Report, 1979–80, pp. 38–40.Google Scholar
  8. 26.
    See Central Provident Fund Annual Reports, 1967–79;Google Scholar
  9. and Monetary Authority of Singapore, Annual Report, 1979–80, pp. 40–2.Google Scholar
  10. 27.
    See MAS, Financial Structure of Singapore, 1980 (revised edition), pp. 45–8;Google Scholar
  11. MAS, Annual Report 1979–80, pp. 40–2;Google Scholar
  12. and Lee Sheng-yi, Public Finance and Public Investment in Singapore (Institute of Banking and Finance, 1978), p. 158.Google Scholar
  13. 30.
    Monetary Authority of Singapore, Annual Report, 1976–7, pp. 33.Google Scholar
  14. 32.
    The net funds raised by the public sector had a rising trend from $641 million in 1973 to $1,540 million in 1979, and, moreover, their share of the total funds raised in the capital market was increased from 60 per cent to 92 per cent in the respective years. In contrast, the demand for capital funds by the private sector fluctuated in the business cycle from 40 per cent of the total funds in 1973 (the height of the boom) to 2 per cent in 1977 (when the stock market was very dull). See Monetary Authority of Singapore, Annual Report, 1975–1979/80, p. 46.Google Scholar
  15. 33.
    See Census of Services, 1974, Vol. II, Department of Statistics, (Singapore, October 1977), p. 55; and Lee Sheng-yi, ‘The Role of Financial Institutions in the Singapore Economy’, Nanyang University Local Committee of AIESEC, Yearbook, 1977–8.Google Scholar
  16. 35.
    Outstanding Government securities were increased from $2,796 million at end 1974 to $3,822 million at end 1975 and to $9,720 million at end 1979. See Lee Sheng-yi, ‘Major Issues in Public Debt Management in Singapore’, a paper presented in the Symposium in March 1979 and published in Mukul Asher and Susan Osborne (eds), Issues in Public Finance in Singapore (Singapore University Press, 1980).Google Scholar
  17. 36.
    See MAS Annual Report, 1979, p. 47, and Quarterly Bulletin 1st Qr. 1980, p. 40.Google Scholar
  18. 44.
    Important writings of the modern ‘monetarist’ school include Milton Friedman, ‘The Quantity Theory of Money — a Restatement’, in Milton Friedman (ed.), Studies in the Quantity Theory of Money, (University of Chicago Press, 1956);Google Scholar
  19. Don Patinkin, Money, Interest and Prices (New York: Harper and Row, 1965) (2nd ed.);Google Scholar
  20. and H. G. Johnson, Essays in Monetary Economics (Harvard University Press, 1967).Google Scholar
  21. See Federal Reserve Bank of San Francisco, Pacific Basin Economic Indicators, June 1980.Google Scholar
  22. 48.
    In theoretical concept, this is the Marshallian K, which is equal to M/Y. In his analysis of demand for money he postulated that people kept a portion of income in money form for transaction purpose. See A Marshall, Money, Credit and Commerce (London: Macmillan. 1923).Google Scholar

Copyright information

© S.Y. Lee and Y.C. Jao 1982

Authors and Affiliations

  • S. Y. Lee
    • 1
  • Y. C. Jao
    • 2
  1. 1.National University of SingaporeSingapore
  2. 2.University of Hong KongChina

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