The Monetary Authority of Singapore (MAS) is Singapore’s central bank (Ivy Panda,

2021). Monetary Policy was first established in Singapore in 1981 where the exchange rate
was given full attention rather than the interest rate as an instrument of monetary policy
unlike other countries that focus on interest rates alone (Ong Chong Tee, 2013). At the same
time, Singapore has also established a policy called Fiscal Policy in Singapore which is
characterized by a high emphasis on long and medium-term purposes (Hwee Kwan Chow,
Fot Chyi Wong, 2020). These two policies have their own objectives which can be as the
benefits for the country itself.

The fundamental focus of Singapore's monetary policy which controlling the exchange
rate of the Singapore dollar against a weighted basket of currencies of its major trading
partners (Ivy Panda, 2021). The choice of the exchange rate is referred to the small size of the
economy in Singapore as well as the openness of trade and capital flows (Ivy Panda, 2021).
This is due to the stability and low inflation rate being maintained in the country. In addition,
it also ensures general prices and financial stability in the economy with Singapore
implementing monetary policy together with micro- and macroprudential measures (Ong
Chong Tee, 2021).

Meanwhile, for the objectives of Fiscal policy are, Instead of concentrating on immediate
demand management goals, it has concentrated more on improving supply-side
circumstances to support growth over the long term. This perspective is a reflection of
Singapore's economic, political, and constitutional circumstances as well as the government's
concentration on economic growth (Donald low, 2013). However, this economic strategy is
also haves it is cons too which is, Singapore's money surplus is influenced by this policy by
the nation's central bank. Additionally, it has a significant impact on the country's economy .

REFERENCES

https://link.springer.com/chapter/10.1007/978-3-030-50298-0_6

https://www.bis.org/publ/bppdf/bispap73w.pdf#:~:text=Unlike%20most%20other
%20countries%2C%20Singapore%20has%20adopted%20the,overall%20price%20and
%20financial%20stability%20in%20the%20economy.

https://ivypanda.com/essays/the-monetary-policy-in-singapore/#:~:text=The%20monetary
%20policy%20in%20Singapore%20has%20since%201981,Singapore%20is%20generally
%20centred%20on%20the%20exchange%20rate.
https://www.singaporeassignmenthelp.com/samples/singapore-economic-policy/

https://lkyspp.nus.edu.sg/docs/default-source/gia-documents/fiscal-management-in-
singapore_with-graphics-july.pdf?sfvrsn=1f4b6c0a_2#:~:text=Fiscal%20policy%20in
%20Singapore%20is%20characterised%20by%20a,contexts%20in%20which%20fiscal
%20policy%20operates%20in%20Singapore.