July 18 2024: Singapore’s economic growth for the full year is expected to align closer to its potential rate of 2% to 3%, with core inflation anticipated to ease significantly in the final quarter, according to the Monetary Authority of Singapore (MAS) managing director Chia Der Jiun.
Economic Growth and Sector Performance
During the release of the MAS annual report, Chia highlighted that growth across major sectors of Singapore’s economy is expected to return gradually to pre-pandemic rates. The GDP growth forecast is positioned in the upper half of the Trade Ministry’s forecast range of 1% to 3% for the year, surpassing the 1.1% growth seen in 2023.
Monetary Performance and Asset Management Growth
The MAS reported a net profit of S$3.8 billion ($2.8 billion) for the 2023/24 financial year. Singapore’s asset management industry saw a 10% increase in assets under management, reaching S$5.41 trillion in 2023. Chia noted significant growth in private markets alongside the wealth management industry.
“The wealth management industry has also grown in line with the asset management industry,” Chia said, emphasizing that a recent money laundering case has not impacted the growth trajectory. “Singapore continues to welcome legitimate wealth and will ensure that our processes and regime are supportive, whilst upholding high regulatory standards.”
Investment in Technology
Chia announced that the MAS will commit an additional S$100 million to support financial institutions in developing capabilities in quantum and artificial intelligence technologies.
($1 = 1.3407 Singapore dollars)
