Singapore's financial sector ready for Y2K

Asian Economic News, Nov 8, 1999

SINGAPORE, Nov. 1 Kyodo

Singapore's financial sector is all geared up for Y2K, the Monetary Authority of Singapore (MAS) said Monday.

The authority said over 99% of the 638 banks and financial institutions in Singapore, including foreign-owned ones, have confirmed in writing they are ready for Y2K.

The Y2K computer glitch could cause computer systems with software that identifies years only by their last two digits to crash or spew out incorrect data on Jan. 1, 2000, by reading the new year as "1900."

"Singapore's financial sector is fully prepared for Y2K, and expects the financial sector to continue to function normally during the crossover into the new millennium," the authority said in a statement.

Banks and financial institutions have completed both in-house and external testing of their computer systems, taken control measures to confront Y2K risks sprouting from clients and other elements, put in place adequate risk management mechanisms and tested their contingency plans, it said.

Singapore had earlier introduced some preventive measures in the financial sector to deal with expected problems related to Y2K.

The measures include a plan introduced by monetary authorities to provide funds to banks and finance companies facing temporary Y2K-related liquidity shortages.

The government's Board of Commissioners of Currency is also fully prepared to deal with increased cash demands during this period.

Singapore authorities have declared Dec. 31 a bank holiday and reduced the volume of electronic transactions.

"The public can feel assured that they need not take any special measures in preparation for the new year," said Tharman Shanmugaratnam, MAS deputy managing director, in the statement.