Until the mid-1960s, Singapore and Malaysia shared close economic relations and a common currency.[1] After Singapore separated from the Federation of Malaysia and gained independence on 9 August 1965, negotiations on maintaining a common currency for the two countries began.[2] However, the discussions that were held between November 1965 and August 1966 proved inconclusive.[3] On 17 August 1966, the governments of Singapore and Malaysia announced that the Currency Board (Board of Commissioners of Currency, Malaya and British Borneo, 1960) would cease to have currency issuing power on 12 June 1967. This was because both countries could not agree on a satisfactory arrangement that was acceptable to both parties over the adoption of a common currency.[4] After that date, Singapore and Malaysia would issue separate currencies.[5]
The Currency Act of 1967 was subsequently enacted in order for Singapore to issue its own currency. The new Board of Commissioners of Currency Singapore (BCCS) that was established following the enactment of the Currency Act was conferred the sole right to issue currency in Singapore.[6] On 12 June 1967, the BCCS issued Singapore’s new currency that was freely interchangeable with the currencies of Malaysia and Brunei.[7] The issuance of the new currency marked a milestone in Singapore’s currency history. The value of the Singapore dollar, which was pegged to 0.290299g of fine gold, was equivalent to 2 shillings and 4 pence in sterling pound.[8] In June alone, the volume that was made available for public circulation amounted to S$178 million.[9] New Singapore coins were issued only on 20 November 1967.[10]
Singapore’s pioneer note series consisted of notes in denominations of $1, $5, $10, $50, $100 and $1,000, with the front of each note bearing the motif of an orchid hybrid.[11] The native orchid reflected Singapore’s sense of independence and symbolised progress and multiculturalism. Each note also incorporated Singapore’s coat of arms, a lion head watermark and Lim Kim San’s signature as he was then the Minister for Finance and chairman of the BCCS, along with the necessary security features.[12] The reverse side of each note bore elements of Singapore’s national identity, including four clasped hands representing multiracial harmony, scenes of the Singapore River and harbour as a reminder of Singapore’s beginnings as a seaport, as well as flats in housing estates to symbolise development and prosperity for all citizens.[13]
References
1. Tan, M. P. N. (Ed.). (1992). Prudence at the helm: Board of Commissioners of Currency Singapore 1967–1992 (p. 13). Singapore: The Board. Call no.: RSING 332.4095957 SIN.
2. White paper on currency (p.1). (1966). Singapore: Government Printing Office. Call no.: RCLOS 332.495957 SIN.
3. White paper on currency, 1966, p.82.
4. Tan, 1992, p. 13.
5. The Straits Times, 18 Aug 1966, p. 1.
6. Republic of Singapore. Government Gazette. Acts Supplement. (1967, March 23). Currency Act 1967 (Act 5 of 1967, p. 125). Singapore: Govt. Print. Off. Call no.: RCLOS 348.5957 SGGAS.
7. All is set for dollar day tomorrow. (1967, June 11). The Straits Times, p. 14. Retrieved from NewspaperSG.
8. Board of Commissioners of Currency. (1969). Annual report & accounts (p. 3). Singapore: The Board. Call no.: RCLOS 332.495957 BCCSAR.
9. Tan, 1992, p. 11.
10. New coins out today. (1967, November 20). The Straits Times, p. 4. Retrieved from NewspaperSG.
11. Abul Fazil. (1967, May 21). Singapore $: 100 p.c. backing. The Straits Times, p. 1. Retrieved from NewspaperSG.
12. Soh, D. (1990). From cowries to credit cards: Stories of Singapore’s money (p. 18). Singapore: Federal Publications. Call no.: RSING 332.495957 SOH.
13. Soh, 1990, p.35.
The information in this article is valid as at 2014 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.