Martin Lee @ Sg
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MAS Monetary Policy Statement Oct 2010

Yesterday, MAS released their monetary policy statement for the second half of this year.

With the risks weighted towards inflation, MAS will continue with the policy of a modest and gradual appreciation of the S$NEER policy band in the period ahead.

The slope of the policy band will be increased slightly, with no change to the level at which the band is centred. At the same time, the policy band will be widened slightly in view of the volatility across international financial markets.

The move runs contrary to what many other countries are doing, as they sought to slow down the rise in their own currencies.


The MAS underlying inflation measure, which excludes the cost of accommodation and private road transport, is expected to average around 2% in 2010 and 2-3% next year.

The economy recorded growth of 15.5% year-on-year in the first three quarters of this year. For 2010 as a whole, GDP is on track to grow by 13% to 15%.

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1 comment
Disappointed says 9 years ago

I’m both surprised and disappointed by MAS action. S’pore is the only economy gangho enough to continue to let it’s currency appreciate.

Yes, taming inflation is important, but how accurate is our data. Personally I don’t feel that the daily essentials and food are more expensive now. I guessed those areas are housing and cars. How many people buy house and cars every year?

S’pore is a very open economy, we depend heavily on trade and tourism to survive. I see 3 areas that will be affected.
1. Our export will drop because S’pore products has become more expensive.
2. Tourists will think twice before they come to S’pore. In fact, early this year, my boss in the US was working a plan to relocate to S’pore due to proximity to customers in Asia. In the end, the corporate cancelled the trip because S’pore is too expensive for this American boss to relocate. And that was beginning of this year when exchange rate still around S$1.40. Now it becomes $1.29, ha, more foreigners will shun S’pore.
3. This one is a bread and butter issue. All the employees of US MNC, including myself, will be affected to some extent. Just look around and try to guess the number of S’poreans currently employed by US companies here. Our wage are converted in the US headquarter before we are being paid in S’pore. I got a 20% pay cut last year and was hoping to recover a little may be 2 to 3 %. Now, I think there is no more hope. I’m quite sure there will be no increment for us in the S’pore office this year because the bosses are already talking about what to do with the increase operation costs in S’pore. Just hope no retrenchment; I had already lost 2 colleagues the last round and they are still jobless today. Very sad thing, not sure the government understand how we feel ? For those who earn just above the peanut labor law limit are not protected by labor law, are struggling. I’m worried…

God Bless.

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