SINGAPORE: The Monetary Authority of Singapore (MAS) recorded a net profit of S$20.0 billion (S$1=RM3.16) for the financial year ended March 31, 2026 (FY2025/26), driven by strong investment gains.
In its annual report released on Tuesday, MAS noted that it recorded investment gains of S$39.8 billion from the management of its foreign investments.
This was partially offset by negative currency translation effects of S$16.4 billion from a stronger Singapore Dollar; net cost from its money market operations to manage banking system liquidity and other expenses of S$2.4 billion; and a contribution to the Government’s Consolidated Fund of S$1.0 billion.
MAS managing director Chia Der Jiun said investment gains were strong as the global economy remained resilient to repeated shocks and financial markets performed well.
"All asset classes across bonds and equities, developed and emerging markets, posted good returns.
"While investment gains vary from year to year, this year’s outturn was similar to last year’s and above our 10-year historical average of S$18.3 billion,” he said in a press conference on Tuesday.
According to Chia, the outlook ahead remains uncertain with continued energy market disruption, rising inflation and high equity market valuations posing risks to future investment returns.
He said the negative currency translation effects of S$16.4 billion were due mainly to the strengthening of the Singapore dollar against the US dollar and the Japanese yen.
"The stronger Singapore dollar has helped to dampen the effects of imported inflation, while resulting in negative currency translation effects.
"Such effects arise when MAS’s official foreign reserves, which are held in foreign currencies, are reported in Singapore dollars,” he added.
Meanwhile, Chia also highlighted that MAS will contribute S$1.0 billion to the Consolidated Fund, and return a further S$2.5 billion of its net profit to the government.
He affirmed that MAS maintains a globally diversified, liquid official foreign reserves portfolio to support its functions as a central bank.
"MAS’ financial results reflect the performance of global asset markets after accounting for the cost of money market operations and negative currency translation effects from a stronger Singapore dollar,” he said. - Bernama
