This excludes capital outflows associated with the MAS’ foreign exchange swaps. The MAS has been using such swaps to sterilize the net liquidity impact of its foreign exchange intervention (see Box 1). The swaps result in an increase in banks’ foreign assets, which are recorded as other capital outflows in the balance of payments.
Forty firms have been divested since end-2005.
This scheme provides income supplement for employed low wage workers over age 35.
Estimated replacement rates based on the CPF Minimum Sum range from 20-40 percent.
’ The announced GST hike by 2 percentage points to 7 percent will take effect in July 2007.
The net fiscal reserves are estimated by staff to exceed 150 percent of GDP.
As a related matter, estimates based on the CGER methodology yield an undervaluation from a medium-term perspective in the range of 15-20 percent. Other estimates prepared by the mission team did not yield conclusive evidence that the Singapore dollar is significantly undervalued.