Latest news with #MonetaryAuthorityOfSingapore
Yahoo
25-05-2025
- Business
- Yahoo
Asia must not succumb to tariff retaliation, Singapore cbank official says
SINGAPORE (Reuters) -Asian economies must remain agile and not succumb to tit-for-tat tariff retaliation, a deputy managing director of the Monetary Authority of Singapore said on Friday. Retaliatory tariffs would lead to negative supply shifts that would worsen the growth-inflation trade-off and complicate monetary policy, Edward Robinson, who is also the MAS's chief economist, told a monetary policy conference."They should continue to keep the old advice to avoid throwing rocks into their own harvest and intensify regional trade integration initiatives, including in digital and services trade, and investment," Robinson said. Protectionism and import taxes disrupt resource allocation and lower the consumer surplus as domestic households face higher prices and fewer choices, he said. "Both the targeted and the tariff-imposing economies suffer." Despite having a free-trade agreement and running a trade deficit with the United States, Singapore has been slapped with a 10% baseline tariff rate by Washington. Other Southeast Asian countries have been threatened with much higher tariffs, although they have been delayed until July and an interim 10% tariff is in place for now. Singapore on Thursday reported a 0.6% contraction in the first quarter, even before U.S. tariffs were announced, putting the economy at risk of a technical recession. The MAS eased policy at reviews in January and April this year. Speaking on Thursday after the GDP data, Robinson said the current monetary policy stance remained appropriate.
Reuters
23-05-2025
- Business
- Reuters
Singapore's core inflation edges up in April; price risks seen tilted to downside
SINGAPORE, May 23 (Reuters) - Singapore's key consumer price gauge came in above expectations in April, data showed on Friday, but it remained at a low level and authorities said the risks to inflation were tilted to the downside given the uncertain global economic environment. The annual core inflation rate, which excludes private road transport and accommodation costs, was 0.7% in April, above the median forecast of 0.5% in a Reuters poll of economists and also the March reading of 0.5%. Headline inflation was 0.9% in annual terms in April, steady with March's reading and a notch higher than economists' forecast of a 0.8% rate. The rise in the annual core inflation rate was the first since September last year, when it had ticked up to 2.8%. The Monetary Authority of Singapore loosened monetary policy for the second time this year at a review in April, reflecting concerns about its growth outlook amid economic uncertainty from U.S. tariffs. It also reduced its forecasts for both core and headline inflation to 0.5% to 1.5%. "The risks to inflation are tilted towards the downside given heightened uncertainties in the external environment," the MAS and Trade Ministry said in a statement on the data. Singapore last month also downgraded its GDP forecast for 2025 to 0% to 2% from the previous 1% to 3%, citing the direct and indirect impacts of the U.S. tariffs, and officials have said there is a risk of recession in the city-state.
South China Morning Post
21-05-2025
- Business
- South China Morning Post
Singapore's central bank chief sees ‘no alternative' to US dollar assets despite downgrade
US dollar-based assets have 'enduring advantages' and remain virtually irreplaceable in the global financial system despite the United States losing its top triple-A credit rating, according to Singapore 's central bank chief. 'They are the dominant, safe assets for use in the financial system, deeply embedded,' Monetary Authority of Singapore Managing Director Chia Der Jiun said at the Qatar Economic Forum on Tuesday. 'The US$28-trillion Treasury market is fundamental and systemic to the global financial system and there is no alternative for this point.' Moody's Ratings last week stripped the US of its top credit rating , a landmark move that casts doubt on the nation's status as the world's highest-quality sovereign borrower. The headquarters of the Monetary Authority of Singapore, the city state's central bank. Photo: Reuters In lowering the US by one notch below the highest investment-grade position, the credit rater joins Fitch Ratings and S&P Global Ratings in downgrading the world's biggest economy. US long-dated debt initially sold off in response to the Moody's downgrade.
CNA
07-05-2025
- Business
- CNA
Commentary: AI is taking entry-level jobs. Who will train the next generation of workers?
SINGAPORE: When DBS Group announced in February that artificial intelligence (AI) could cut up to 4,000 contract and temporary jobs at the bank over the next few years, it spotlighted a growing concern. Across industries from marketing to finance to software, AI is automating the 'ground floor' of careers – the very roles used to teach workers the ropes. THE VANISHING GROUND FLOOR Careers are not downloaded fully formed; they are built through hands-on experience, structured learning and mentorship – a foundation that's rapidly eroding. Junior employees have traditionally learnt by doing foundational work. Writers edited press releases. Designers created social media graphics. Programmers fixed bugs and wrote tests. Learning was embedded in the job itself. Today, companies increasingly use ChatGPT to draft content, Midjourney to design visuals, and GitHub Copilot to generate code. While impressive, these tools are also removing crucial learning opportunities. A 2023 ResumeBuilder survey found that 37 per cent of US companies had already replaced workers with ChatGPT, and 44 per cent were planning more replacements. AI could automate 25 per cent of current work tasks globally, affecting 300 million jobs, reported Goldman Sachs the same year. The Monetary Authority of Singapore in 2019 projected that one in three finance jobs in Singapore alone could be transformed or eliminated by automation. THE COMPETENCE GAP AI-generated work often appears polished but may lack the technical or critical depth of human judgment and expertise. Without foundational training, junior employees risk becoming dependent on tools they cannot truly assess or evaluate. Research from MIT and Stanford shows AI-assisted workers complete tasks 40 per cent faster – but their work often requires more revision by seniors. A copywriter using ChatGPT might not understand why one tagline lands while another falls flat. A developer relying on code generators may be lost when systems break in ways the AI is unable to foresee or account for. This creates a dangerous illusion: the work is completed faster and largely looks good, but true competence and understanding are missing. If entry-level roles become performative – driven by prompting rather than critical thinking – we risk building a future where nobody truly knows how things work. LOSING HUMAN JUDGMENT Besides technical competence, the disappearance of entry-level jobs threatens the development of critical thinking and nuanced judgment. Entry-level positions traditionally allow young professionals to understand company culture, learn from making mistakes in relatively low-stakes scenarios, and develop soft skills such as communication, collaboration, and resilience. These soft skills – critical for future leadership – cannot be automated. Yet, without junior roles that explicitly teach and nurture these abilities, the next generation risks entering senior positions technically capable but lacking essential interpersonal and strategic skills. THE EQUITY CHALLENGE This shift particularly affects students and young workers from less privileged backgrounds. Previously, on-the-job training helped level the playing field. However, if entry-level positions now demand pre-existing expertise without offering learning opportunities, those without industry connections face significant barriers. We are already seeing this play out in rising unpaid internships and portfolio expectations. According to a 2024 National Youth Council survey, 68 per cent of young job seekers in Singapore reported that internship experience is now considered "essential" rather than "preferred" for entry-level positions. When only those who can "fake it" with AI tools or secure mentorship through personal networks are considered hireable, we narrow both the diversity and depth of future talent. A STRUCTURED SOLUTION Singapore could consider responding by launching a national apprenticeship scheme – building on the SGUnited Traineeships programme from COVID-19, but retooled for the AI age. Such a scheme could: • Offer 12–24 month paid placements for fresh graduates, polytechnic and ITE students • Emphasise AI-augmented work with real mentorship • Include structured feedback, not just key performance indicators to hit • Encourage mentorship from senior employees explicitly, recognising and rewarding their role in shaping future talent. Countries with similar programmes have seen promising outcomes. Germany's dual-track system keeps youth unemployment at 5.7 per cent – well below the European Union average of 14.5 per cent. Singapore's SkillsFuture Earn and Learn scheme boasts a 93 per cent job placement rate in technical fields. It is time to extend this success to knowledge work too. BUILDING LONG-TERM INFRASTRUCTURE However, unlike the SG Traineeships programme, this cannot be a temporary patch. AI isn't a crisis to outlast – it's a shift to outsmart. We need new systems to grow talent in a world where doing the task is not always how you learn it anymore. This is not about Gen Z being 'lazy' or a lack of talent. It's about a system that's no longer structured to produce mastery. Apprenticeships are not a nostalgic idea; they are a practical response. Research across various industries shows that many seniors are willing to mentor, but cannot do so without structure. If we can build apprenticeship into our workflows, we strengthen learning and loyalty for both senior and junior workers. Companies also benefit from higher-quality talent pipelines, and employees from gaining valuable, marketable skills. Governments, educational institutions and private companies must collaborate to establish frameworks that institutionalise learning in the age of AI. Curriculum updates should integrate AI literacy alongside human judgment, ethics, and creativity, preparing students not just to leverage AI but to question and guide its responsible use. SINGAPORE'S STRATEGIC OPPORTUNITY For decades, Singapore has thrived on a shared, unspoken promise: work hard, play by the rules, and you'll be rewarded. Our success has never been just about gross domestic product. It was about building trust – between citizen and state, worker and employer. This has made Singapore one of the world's safest, most developed nations despite our lack of natural resources. It explains our reliable public transport, clean streets, and globally competitive schools. Should young Singaporeans lose faith in the social contract that promises effort will lead to growth and reward, our collective trust will erode. If AI is here to stay – and it is – we must ensure human judgment, mentorship, and mastery remain integral to our workforce. This approach safeguards not just our economy but our identity as a society committed to advancement for all. This isn't charity. It's a long-term investment in capability. No matter how powerful the tools in our kit become, we still need to know how – and when – to use them well. It starts with someone willing to teach – and someone given a real chance to learn.
