Kuala lumpur: The Monetary Authority of Singapore (MAS) recorded a net profit of S$20.0 billion for the financial year ending March 31, 2026, driven by substantial investment gains.

According to BERNAMA News Agency, MAS reported in its annual report that it achieved investment gains of S$39.8 billion from the management of its foreign investments. This was partially countered by negative currency translation effects amounting to S$16.4 billion due to a stronger Singapore Dollar. Additionally, there were net costs associated with money market operations to manage banking system liquidity and other expenses totaling S$2.4 billion, along with a S$1.0 billion contribution to the Government's Consolidated Fund.

MAS managing director Chia Der Jiun explained that the investment gains were robust as the global economy showed resilience to repeated shocks, and financial markets performed well. He noted that all asset classes, including bonds and equities across developed and emerging markets, delivered positive returns. Despite annual fluctuations in investment gains, this year's outcome was consistent with the previous year and surpassed the 10-year historical average of S$18.3 billion.

Chia mentioned that the outlook remains uncertain due to ongoing energy market disruptions, rising inflation, and high equity market valuations, which pose risks to future investment returns. The S$16.4 billion in negative currency translation effects arose primarily from the appreciation of the Singapore Dollar against the US Dollar and the Japanese Yen. A stronger Singapore Dollar has mitigated imported inflation effects but resulted in negative currency translation impacts as MAS's official foreign reserves, held in foreign currencies, are reported in Singapore Dollars.

Chia also highlighted that MAS will contribute S$1.0 billion to the Consolidated Fund and return an additional S$2.5 billion of its net profit to the government. He reiterated that MAS maintains a globally diversified, liquid official foreign reserves portfolio to support its central bank functions. The financial results reflect the performance of global asset markets after accounting for money market operation costs and negative currency translation effects from a stronger Singapore Dollar.