Monetary Authority of Singapore Projects 2024 Growth Closer to Potential Rate of 2-3%
Singapore's full-year economic growth for 2024 is expected to align more closely with the country's potential rate of 2% to 3%, according to Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS). Speaking at the release of MAS's annual report, Chia emphasized that growth across major sectors is anticipated to return to pre-pandemic levels.
Key Points from the MAS Report
Economic Growth: The GDP growth forecast for 2024 falls in the upper half of the Trade Ministry's 1% to 3% range, significantly higher than the 1.1% growth recorded in 2023.
Core Inflation: Core inflation is projected to ease considerably in the final quarter of the year.
Financial Performance: MAS reported a net profit of S$3.8 billion ($2.8 billion) for the 2023/24 financial year.
Asset Management: Assets under management in Singapore's asset management industry saw a 10% increase in 2023, reaching S$5.41 trillion. Private markets contributed significantly to this growth.
Wealth Management: The wealth management sector has expanded alongside the asset management industry. Despite recent high-profile money laundering cases, Chia assured that these incidents have not affected the industry's growth trajectory.
Economic Outlook
Chia highlighted that growth is expected to return to pre-pandemic rates, reflecting stability and recovery across various sectors of the economy. This projection aligns with the government's broader economic strategy to maintain steady and sustainable growth.
Financial Sector Performance
Asset Management Growth: The notable 10% growth in the asset management industry underscores Singapore's position as a leading financial hub. The increase in assets under management, particularly in private markets, indicates robust investor confidence.
Wealth Management: The wealth management industry's growth trajectory remains positive, with Singapore continuing to attract legitimate wealth while upholding stringent regulatory standards.
Despite the positive outlook, Chia acknowledged the challenges posed by global economic uncertainties. However, he expressed confidence in Singapore's ability to navigate these challenges through sound economic policies and a resilient financial sector.
Chia reassured that Singapore remains committed to maintaining high regulatory standards while fostering a supportive environment for legitimate wealth management. This balance is crucial in sustaining investor confidence and ensuring long-term economic stability.
Singapore's projected economic growth for 2024 signifies a return to stability, with significant contributions from the asset and wealth management sectors. The MAS's positive financial performance and proactive regulatory stance highlight the country's resilience and strategic economic planning, positioning it well for sustainable growth in the coming years.
