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IMF Country Report No. 17/241

SINGAPORE

SELECTED ISSUES

July 2017

This Selected Issues paper on Singapore was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on June 27, 2017.

Copies of this report are available to the public from

International Monetary Fund • Publication Services

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International Monetary Fund

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© 2017 International Monetary Fund

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SINGAPORE

SELECTED ISSUES

June 27, 2017

Approved By

Asia and Pacific Department

Prepared by Gerard Almekinders, David Grigorian, Souvik Gupta, and Umang Rawat (all APD); Mahvash S. Qureshi (RES); and Adeline Yeo (Resident Representative Office)

Contents

  • ASSESSING BANKING SECTOR PERFORMANCE

  • A. Banking Sector Trends

  • B. The Wealth Management Sector

  • FIGURES

  • 1. Banking System Trends

  • 2. Local Banking Groups: Trends

  • MANAGING THE PROPERTY MARKET

  • References

  • EMBRACING THE FUTURE ECONOMY: STRIVING FOR INNOVATION, AUTOMATION, AND INCLUSION

  • A. Background

  • B. The Singaporean Innovation Ecosystem

  • C. Automation and Artificial Intelligence: Opportunities and Challenges

  • D. A Future of Inclusion

  • BOX

  • 1. At the Forefront of Fintech

  • References

  • WHAT DRIVES PRIVATE SAVINGS IN SINGAPORE?

  • A. Background

  • B. Analytical Framework

  • C. Estimation Results

  • D. Conclusions

  • FIGURES

  • 1. Current Account Balance and National Savings

  • 2. Public and Private Saving

  • 3. Labor Income and Corporate Profit

  • 4. Corporate Profits and Retained Earnings

  • TABLES

  • 1. Private Saving Function, 1980-2016

  • 2. Private Saving Function in Other Advanced Countries, 1980-2016

  • 3. Private Saving Function in Other Advanced Countries Including Singapore, 19802016

  • 4. Private Saving Function in Advanced Countries: Sub-samples

  • References

  • APPENDIX

  • I. Data and Additional Results

  • CAPITAL FLOWS TO SINGAPORE: MACROECONOMIC IMPLICATIONS AND POLICY RESPONSES

  • A. Introduction

  • B. Changes and Policy Response

  • C. Conclusion and Policy Implications

  • FIGURES

  • 1. Stock of External Assets and Liabilities in Singapore and Other Selected Countries

  • 2. Net Financial, Asset, and Liability Flows to Singapore

  • 3. Volatility of Net Financial Flows to Singapore

  • 4. Real GDP Growth in Singapore and Selected Countries, 1990-2016

  • 5. Financial Flows, Inflation, and Financial Vulnerabilities

  • 6. Liability Flows and Macroeconomic Policy Response, 1995-2016

  • 7. NEER and Monetary Policy Stance

  • 8. Macroprudential Measures and House Prices

  • 9. Real House Prices in Regional Peers

  • TABLES

  • 1. Financial Flows and Global Factors, 1995-2016

  • 2. Financial Flows by Type and Global Factors, 1995-2016

  • References

  • Collapse
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Singapore: Selected Issues
Author:
International Monetary Fund. Asia and Pacific Dept