If a negative interest rate policy is implemented in Singapore, should we withdraw all our cash and stash under our pillows?

Interesting question, and in fact I have also been thinking about this question. I am not sure what is the probability of such an event happen in Singapore. If Singapore one day were to implement a negative interest rate policy, this would definitely have an impact to our financial system. For those who have never invest before, they will start looking for a product that pays interest (e.g. bonds). For bond holders, they might start looking for a higher yield product (e.g. equity). Why would they do that is because everyone has a financial objective in mind, and all of us need a certain amount of money at a certain period of time. In order to achieve their objective, they will start to look for products that offer higher returns.

Singapore is an price taker for interest rates and do not implement interet rate policies. If you are interested in the mechanics as to why we do not control interest rate, you can read up on Impossible Trinity/ Trilemma.​​​