Pillay, 81, takes over charge from Yong Pung How, the former Chief Justice of Singapore, the University said in a statement.
The appointment is for five years and came into effect from September 1.
Pillay is one of Singapore's pioneers who helped build the economy after the separation from Malaysia. He served in the administrative service of the government and was permanent secretary of the ministries of finance, defence and national development.
He has also served as chairman of the Singapore Exchange from 1999 to 2010. He was the managing director of the Monetary Authority of Singapore and the Government of Singapore Investment Corporation. Singapore Airlines became a global player under his leadership.
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