The Monetary Authority of Singapore (MAS), the central bank, said that two-dollar polymer, or plastic, notes will be issued starting from January 12.
Their introduction comes after the first batch of 10-dollar plastic notes began circulating in May last year.
Positive feedback about the 10-dollar note led the MAS to also introduce the two dollar purple-coloured denomination in plastic form, Philip Woo, MAS's deputy director of notes and securities, told.
"The 10-dollar polymer note was successful. The public liked it and the response was favorable," Woo said, adding that plastic notes are more cost effective because of their longer life span.
It is believed that a plastic note is expected to last three to four times longer than a paper note.
Since the introduction of polymer notes last year, Singapore has joined countries including Australia, New Zealand, Malaysia, Brunei and Indonesia which already use plastic money.
Asked about future plans for plastic notes Woo said, "We are very confident moving forward" but added that the MAS does not have a definite time plan for a full conversion of paper to plastic.
"We are going to see how it goes. It will be done in phases and I can't set a time frame," he added.
Paper two-dollar notes will continue to circulate and be legal tender, AFP reports.
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