Why Singapore’s Cash Stock Is Rising Despite Cashless Payments

Singapore’s currency in active circulation reached a reported record of S$69.6 billion, even as electronic payment options continue to expand. The apparent contradiction is easier to understand once the measure is separated from everyday spending: it records the value of notes and coins in circulation, not how often people pay with cash. 124

What the five-year figures show

The reported annual totals rose in sequence from S$60.3 billion to S$63.2 billion, S$64.6 billion, S$66.6 billion and S$69.6 billion. The year-to-year increases were therefore uneven: they narrowed after the first rise, then grew over the next two reported intervals. The latest increase—S$3.0 billion—was larger than the preceding S$2.0 billion rise. 1

These figures show that the value of currency in circulation kept increasing, but they do not establish how much cash was used for transactions during each period. MAS publishes circulation statistics as the value of notes and coins issued into circulation. 4

Why cash in circulation is not the same as cash payments

A banknote can remain in circulation without changing hands often. Notes may be held as savings or kept available for emergencies and other contingencies. As a result, a larger stock of cash does not necessarily mean more cash transactions. MAS has said that higher-denomination notes contribute to the increase, including notes used for transactions or held for contingencies. 1

This helps explain the “paradox of banknotes”: demand for physical cash can persist even while electronic payments become more common. Singapore’s e-payment initiatives include options such as PayNow and SGQR, but their availability does not mean people or businesses have stopped holding cash. 2510

The available figures do not show how much of the S$69.6 billion is held for everyday spending, savings or contingency needs. The circulation total should therefore be read as a measure of cash outstanding, not as a direct measure of payment habits. 14

Why Singapore stopped issuing its largest notes

Large-denomination notes can hold substantial value in a small amount of physical cash. But MAS says it stopped issuing S$1,000 notes from 1 January 2021 and S$10,000 notes from 1 July 2014 as a pre-emptive measure to reduce potential money-laundering and terrorism-financing risks associated with large notes. 3

Stopping new issuance did not invalidate notes already issued. MAS says notes and coins issued since 1967 remain legal tender in Singapore. 6 The distinction matters: reducing the supply of new high-denomination notes is not the same as requiring holders to exchange or surrender existing ones.

Cash has an environmental cost, but the evidence here is limited

Cash-related processing can carry environmental costs. Channel NewsAsia reported that MAS planned to stop issuing “good-as-new” S$2 notes for Chinese New Year because processing them added carbon emissions. 22

Polymer notes are described as lasting longer than paper notes, which may reduce how often they need replacing; however, the available sources do not quantify the overall environmental footprint of cash or compare it with digital payments. 19 So while durability and processing matter, the evidence provided does not establish which payment method has the lower total impact.

The takeaway

The rise to S$69.6 billion is not evidence that cash payments have overtaken digital payments—or even that cash is being spent more frequently. It reflects the total value of currency in circulation, which can grow as higher-denomination notes are used or held in reserve. Electronic payments and physical cash can coexist, and the circulation figure alone cannot reveal how people use each. 124