Singapore’s central bank says no ‘significant funds’ from Myanmar firms, citizens in city state
- The Monetary Authority of Singapore’s response came as the government faced renewed pressure over Myanmar’s foreign reserves purportedly deposited in the city state
- The Justice for Myanmar group has claimed some US$5.7 billion of foreign reserves were parked in Singapore’s commercial banks
In a statement issued “in response to media queries”, the Monetary Authority of Singapore (MAS) also said that it required financial institutions in the city state to “remain vigilant to any transactions that could pose risks to the institution, including dealings with companies and individuals subject to financial sanctions by foreign jurisdictions”.
Anti-coup protesters have since Monday been sharing a tweet by the Justice for Myanmar group that claimed some US$5.7 billion of foreign reserves were deposited in Singapore’s commercial banks.
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On Monday, the US Treasury Department imposed punitive measures on two additional members of the military top brass: air force chief General Maung Maung Kyaw and Lieutenant General Moe Myint Tun, a former army chief of staff and commander of one of the military’s special operations bureaus which oversee operations from the capital, Naypyidaw.
Singapore’s central bank in its statement said it expects “financial institutions in Singapore, as always, to comply with MAS regulations that implement United Nations Security Council resolutions, and guard against fund flows that could be related to illicit activities”.
“MAS closely supervises financial institutions to check that processes are in place for compliance and takes appropriate enforcement actions where there are serious lapses,” the statement said.
It did not directly reference the claim about Myanmar’s foreign reserves deposited in the city state.
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Singapore’s status as the biggest source of foreign direct investment to Myanmar – cumulatively amounting to US$24.1 billion until last December – has emerged as a lightning rod for criticism, with anti-coup protesters condemning the government for being too cosy with the previous junta that ruled for decades until NLD came to power in 2015’s elections.
Singapore’s government has said a large proportion of the investment came during the NLD’s rule.
It has also routinely pushed back against long-time assertions that the likes of Myanmar’s military generals use the country – one of Asia’s most important banking and wealth management hubs – as their preferred enclave for parking their wealth.
With the situation escalating, observers have said Singapore’s public statements showed it was toughening its position towards the Tatmadaw, as the Burmese military is known.
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Last week, Foreign Minister Vivian Balakrishnan said it was unacceptable for security forces to use live bullets against unarmed civilians under any circumstance.
Government-linked companies such as Keppel Land and Sembcorp have also come under the spotlight due to their commercial interests in Myanmar.
It operates a US$310 million power station in the Myingyan district of Mandalay with a contracted capacity of 225 megawatts, serving over five million people.
Wong Kim Yin, group president and chief executive, said that along with the safety of employees, the safe operation of the power plant was also important. “This plant is one of the lowest cost power that is available to the people of Myanmar … [so] continuing operating this plant is important to the well-being of the people in the community we serve,” he said.
Wong also briefly spoke about the Myanmar Singapore Industrial Park, Sembcorp’s joint venture project with Myanmar companies that was first announced last year.
He said there were no “actual activities” taking place there currently, and it was too early to say when work would begin. “Let’s wait until the situation normalises,” he said. “We hope that the situation will stabilise soon so that we can make those judgements.”
