Abstract
Singapore’s large financial sector has remained resilient. The output has shown to rebound strongly despite a drop of 9 percent in GDP during 2008-early 2009. The new challenges include consumer price inflation, income inequality, and rising housing prices. The downside risks for the Singapore economy are large, but the country has large buffers and significant policy room to dampen the immediate and longer-term effects of a sharp global slowdown. The authorities have ample policy space and instruments to address the negative impact of economic shocks.
Annex I: Singapore—Fund Relations
(As of May 31, 2012)
I. Membership Status: Joined August 3, 1966; Article VIII
II. General Resources Account
| SDR Millions | Percent of Quota | ||
|---|---|---|---|
| Quota | 1,408.00 | 100.00 | |
| Fund holdings of currency | 952.54 | 67.65 | |
| Reserve position in Fund | 455.72 | 32.37 | |
| Lending to the Fund: | |||
| New Arrangement to Borrow | 130.30 | ||
| SDR Millions | Percent of Quota | ||
|---|---|---|---|
| Quota | 1,408.00 | 100.00 | |
| Fund holdings of currency | 952.54 | 67.65 | |
| Reserve position in Fund | 455.72 | 32.37 | |
| Lending to the Fund: | |||
| New Arrangement to Borrow | 130.30 | ||
III. SDR Department
| SDR Millions | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 744.21 | 100.00 |
| Holdings | 868.25 | 116.67 |
| SDR Millions | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 744.21 | 100.00 |
| Holdings | 868.25 | 116.67 |
IV. Outstanding Purchases and Loans: None
V. Financial Arrangements: None
VI. Projected Payments to the Fund: None.
VII. Exchange Arrangement
Singapore’s exchange rate is classified as “other managed.” The Monetary Authority of Singapore (MAS) monitors its value against an undisclosed basket of currencies and intervenes in the market to maintain this value within an undisclosed target band. The U.S. dollar is the intervention currency. Singapore has accepted the obligations of Article VIII, Sections 2, 3, and 4 and maintains an exchange rate system free of restrictions on the making of payments and transfers for current international transactions. Singapore maintains restrictions on Singapore dollar credit facilities to, and bond and equity issuance by, nonresident financial institutions. Singapore-dollar proceeds obtained by nonresident financial entities (such as banks, merchant banks, finance companies, and hedge funds) from loans exceeding S$5 million, or any amount for equity listings or bond issuance to finance activities outside Singapore must be swapped or converted into foreign currency upon draw-down. Financial institutions are prohibited from extending Singapore-dollar credit facilities in excess of S$5 million to nonresident financial entities if there is reason to believe that the Singapore-dollar proceeds may be used for Singapore-dollar currency speculation.
VIII. Article IV Consultation
Singapore is on the 12-month consultation cycle. The 2011 Article IV consultation discussions were held during November 14–21, 2011; the Executive Board discussed the staff report (IMF Country Report No. 12/42) and concluded the consultation on February 8, 2012.
IX. FSAP Participation
The FSAP was undertaken in conjunction with the 2003 Article IV consultation. The FSSA was published as IMF Country Report No. 04/104. An FSAP update is scheduled for 2013.
X. Technical Assistance: None
XI. Resident Representative: Mr. Ravi Balakrishnan; Ms. Jeanne Gobat
Annex II: Singapore—Statistical Issues
| I. Assessment of Data Adequacy for Surveillance | |
|---|---|
| General: Data provision is broadly adequate for surveillance. While the authorities have continued to expand the range of publicly available data, dissemination of more disaggregated data would enhance the basis for macroeconomic policy analysis, particularly in the external and fiscal areas. | |
| National accounts: The Singapore Department of Statistics (DOS) has made improvements in data sources and methodology. The reconciliation of various national accounts estimates was conducted in 2006, resulting in lower statistical discrepancies. (DOS) has completed the rebasing of the Singapore’s national accounts to reference year 2005. Price statistics: DOS has completed the rebasing of the Consumer Price Index (CPI) to base year 2009. The CPI is rebased once every five years to reflect the latest consumption pattern and composition of goods and services consumed by resident households. |
|
| Government finance statistics: Information on government assets held abroad is neither published nor provided to the Fund. The government publishes annually partial information on the interest and dividends on these assets. Debt service payments on domestic debt made from the extra budgetary Government Securities Fund are published on an annual basis. Data on the financial position of the consolidated public sector is not published. | |
| Monetary statistics: The Monetary Authority of Singapore has not submitted the standardized report forms (SRFs) for monetary statistics introduced in October 2004. The SRFs provide for accounting data to be broken down by instrument, sector, and currency. | |
| Balance of payments: In February 2012, the DOS concluded the migration of the balance of payments accounts to the 6th edition of the Balance of Payments Manual. The main changes relative to the 5th edition include: reclassification of repairs on goods and goods for processing to services (from goods); reclassification of merchanting to goods (from services); and treating banks’ Asian Currency Unit (ACU) as residents (previously they were regarded as nonresidents, and hence their transactions were excluded from the balance of payments). Data on Singapore’s international investment position (IIP) is not provided on a disaggregated sectoral basis as suggested by the Balance of Payments Manual. Also, the IIP position does not include all net foreign assets held by Singapore’s Government Investment Corporation, although all associated flows are included in the balance of payments data. The authorities reconfirmed their commitment to fully report the IIP data to the Fund by 2014. | |
| II. Data Standards and Quality | |
| Singapore provides data on a timely basis and meets all the SDDS specifications. These include the coverage, periodicity, and timeliness of the data; and the dissemination of advance release calendars; quarterly certification of the metadata posted on the Fund’s Dissemination Standards Bulletin Board; and provision of information to allow users to assess data quality. | No data ROSC is available. |
| I. Assessment of Data Adequacy for Surveillance | |
|---|---|
| General: Data provision is broadly adequate for surveillance. While the authorities have continued to expand the range of publicly available data, dissemination of more disaggregated data would enhance the basis for macroeconomic policy analysis, particularly in the external and fiscal areas. | |
| National accounts: The Singapore Department of Statistics (DOS) has made improvements in data sources and methodology. The reconciliation of various national accounts estimates was conducted in 2006, resulting in lower statistical discrepancies. (DOS) has completed the rebasing of the Singapore’s national accounts to reference year 2005. Price statistics: DOS has completed the rebasing of the Consumer Price Index (CPI) to base year 2009. The CPI is rebased once every five years to reflect the latest consumption pattern and composition of goods and services consumed by resident households. |
|
| Government finance statistics: Information on government assets held abroad is neither published nor provided to the Fund. The government publishes annually partial information on the interest and dividends on these assets. Debt service payments on domestic debt made from the extra budgetary Government Securities Fund are published on an annual basis. Data on the financial position of the consolidated public sector is not published. | |
| Monetary statistics: The Monetary Authority of Singapore has not submitted the standardized report forms (SRFs) for monetary statistics introduced in October 2004. The SRFs provide for accounting data to be broken down by instrument, sector, and currency. | |
| Balance of payments: In February 2012, the DOS concluded the migration of the balance of payments accounts to the 6th edition of the Balance of Payments Manual. The main changes relative to the 5th edition include: reclassification of repairs on goods and goods for processing to services (from goods); reclassification of merchanting to goods (from services); and treating banks’ Asian Currency Unit (ACU) as residents (previously they were regarded as nonresidents, and hence their transactions were excluded from the balance of payments). Data on Singapore’s international investment position (IIP) is not provided on a disaggregated sectoral basis as suggested by the Balance of Payments Manual. Also, the IIP position does not include all net foreign assets held by Singapore’s Government Investment Corporation, although all associated flows are included in the balance of payments data. The authorities reconfirmed their commitment to fully report the IIP data to the Fund by 2014. | |
| II. Data Standards and Quality | |
| Singapore provides data on a timely basis and meets all the SDDS specifications. These include the coverage, periodicity, and timeliness of the data; and the dissemination of advance release calendars; quarterly certification of the metadata posted on the Fund’s Dissemination Standards Bulletin Board; and provision of information to allow users to assess data quality. | No data ROSC is available. |
Singapore—Table of Common Indicators Required for Surveillance
(As of June 13, 2012)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Official external debt is zero.
The reported number does not include the net foreign asset position of the Government of Singapore’s Investment Corporation.
Singapore—Table of Common Indicators Required for Surveillance
(As of June 13, 2012)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | |
|---|---|---|---|---|---|
| Exchange rates | 6/13/12 | 6/13/12 | D | D | D |
| International reserve assets and reserve liabilities of the Monetary Authorities1 | 5/2012 | 6/2012 | M | M | M |
| Reserve/base money | 4/2012 | 5/2012 | M | M | M |
| Broad money | 4/2012 | 5/2012 | M | M | M |
| Central bank balance sheet | 4/2012 | 6/2012 | M | M | M |
| Consolidated balance sheet of the banking system | 4/2012 | 6/2012 | M | M | M |
| Interest rates2 | 6/13/12 | 6/13/12 | D | D | D |
| Consumer price index | 4/2012 | 5/2012 | M | M | M |
| Revenue, expenditure, balance and composition of financing3—general government4 | . | . | . | . | . |
| Revenue, expenditure, balance and composition of financing3—central government | 4/2012 | 5/2012 | M | M | M |
| Stocks of central government and central government-guaranteed debt5 | . | . | . | . | . |
| External current account balance | 2012:Q1 | 5/2012 | Q | Q | Q |
| Exports and imports of goods and services | 5/2012 | 6/2012 | M | M | M |
| GDP/GNP | 2012:Q1 | 5/2012 | Q | Q | Q |
| Gross external debt7 | 2011:Q4 | 3/2012 | Q | Q | Q |
| Net international investment position8 | 2010 | 2011 | A | A | A |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Official external debt is zero.
The reported number does not include the net foreign asset position of the Government of Singapore’s Investment Corporation.
Singapore—Table of Common Indicators Required for Surveillance
(As of June 13, 2012)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | |
|---|---|---|---|---|---|
| Exchange rates | 6/13/12 | 6/13/12 | D | D | D |
| International reserve assets and reserve liabilities of the Monetary Authorities1 | 5/2012 | 6/2012 | M | M | M |
| Reserve/base money | 4/2012 | 5/2012 | M | M | M |
| Broad money | 4/2012 | 5/2012 | M | M | M |
| Central bank balance sheet | 4/2012 | 6/2012 | M | M | M |
| Consolidated balance sheet of the banking system | 4/2012 | 6/2012 | M | M | M |
| Interest rates2 | 6/13/12 | 6/13/12 | D | D | D |
| Consumer price index | 4/2012 | 5/2012 | M | M | M |
| Revenue, expenditure, balance and composition of financing3—general government4 | . | . | . | . | . |
| Revenue, expenditure, balance and composition of financing3—central government | 4/2012 | 5/2012 | M | M | M |
| Stocks of central government and central government-guaranteed debt5 | . | . | . | . | . |
| External current account balance | 2012:Q1 | 5/2012 | Q | Q | Q |
| Exports and imports of goods and services | 5/2012 | 6/2012 | M | M | M |
| GDP/GNP | 2012:Q1 | 5/2012 | Q | Q | Q |
| Gross external debt7 | 2011:Q4 | 3/2012 | Q | Q | Q |
| Net international investment position8 | 2010 | 2011 | A | A | A |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Official external debt is zero.
The reported number does not include the net foreign asset position of the Government of Singapore’s Investment Corporation.