, Singapore

Lavish budget makes another MAS easing more likely

Blame it on benign inflation.

Singapore’s lavish Jubilee Budget will ease inflation pressures further, thanks to healthcare and education subsidies, service and conservancy rebates, and the deferral of this year’s round of foreign worker levies.

This comes after three straight months of deflation. Singapore’s CPI has been in the red since November, weighed down mainly by lower oil prices.

According to Bank of America Merrill Lynch, the threat of deflation may push the Monetary Authority of Singapore to ease again in its policy meeting in April.

“Budget will ease inflation pressures further, with exception of higher petrol duties. This may increase the likelihood of further MAS easing (via re-centering) in April, if growth weakens,” stated BofAML.
 

Join Singapore Business Review community
Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.