By Xinghui Kok
SINGAPORE (Reuters) – Singapore’s annual economic growth will approach its potential rate of 2% to 3% and core inflation is expected to ease more significantly in the final quarter of the year, the central bank chief said on Thursday .
Monetary Authority of Singapore (MAS) managing director Chia Der Jiun, speaking at the release of the central bank’s annual report, said growth in key sectors of the city-state’s economy is expected to gradually return to pre-pandemic rates .
The GDP growth forecast is in the upper half of the Ministry of Commerce’s forecast range of 1% to 3% for the year, and compared with growth of 1.1% in 2023.
Chia told a press conference that MAS made a net profit of S$3.8 billion (US$2.8 billion) in the 2023/24 financial year.
Assets under management in Singapore’s asset management industry grew 10% in 2023 to S$5.41 billion, Chia said, noting that private markets have grown significantly.
“The wealth management industry has also grown in line with the asset management industry,” he said, adding that the recent money laundering case has not changed the growth trajectory.
“Singapore continues to welcome legitimate wealth and will ensure our processes and regime are supportive, while upholding high regulatory standards,” he said.
Chia also announced that MAS will commit an additional S$100 million to support financial institutions in building capabilities in quantum and artificial intelligence technologies.
($1 = 1.3407 Singapore dollars)
(Reporting by Xinghui Kok; Editing by John Mair)
