SINGAPORE: The Monetary Authority of Singapore ( MAS ) recorded a net profit of S$ 3.8 billion ( US$ 2.83 billion ) in the financial year that ended on Mar 31, a reversal from the record S$ 30.8 billion loss reported the year before.
Managing director Chia Der Jiun said on Thursday ( Jul 18 ) that MAS made investment gains of S$ 12.7 billion, more than 20 times the S$ 0.6 billion in the previous year.
Curiosity earnings, dividends, and realized capital gains were primarily the funding gains, according to Mr. Chia at the launch of the central corporation’s annual report.
MAS generated a total revenue of S$ 25.2 billion.
S$ 1.7 billion in the fiscal year was also a” small positive currency translation effect.” Because MAS releases its results in Singapore dollars, the local currency strengthened against the established foreign reserves held in the euro, pound, and US dollars, which are some of the local currencies.
S$ 21.4 billion was the total amount spent, primarily as a result of interest costs on MAS costs and other borrowings for local money business operations. This is away from S$ 13.7 billion a year ago.
MAS incurred higher interest charge in its do of money business operations because Singapore Dollar interest rates increased along with the increase in global interest rates, according to MAS in its annual report.
Money market procedures to maintain Singapore’s banking system, cash and additional charges cost S$ 10.6 billion this year.
Despite the overall gain, there was no commitment to the government’s merged fund nor profit of earnings to the government , for the fiscal year.
Its total funds and resources were S$ 38.1 billion as of Mar 31.
SINGAPORE’S GROWTH MOMENTUM TO Develop
Mr. Chia predicted that local growth momentum will increase in light of fairly positive global development and disinflation, with significant sectors returning to pre-pandemic levels.
” For the full year, GDP ( gross domestic product ) growth will come in closer to its potential rate of 2 to 3 per cent”, he said.
The Ministry of Trade and Industry ( MTI ) expects GDP for 2024 to be between 1 and 3 per cent.  , Prices in Singapore has also moderated, with core cpi at 3.1 per cent in May.
Regarding the global economy, Mr. Chia stated that growth has been resilient over the past year and is expected to remain widely constant.
Beyond this month, he said,” We remain alert to the dangers to the global development outlook,” citing high interest rates as a potential source of stress on private sector spending.
He said that the Middle East’s uncertainty and the possibility of more international protectionist policies may also change confidence and investment and drive up production costs.
SUPPORT FOR QUANTUM AND AI Skills
MAS also announced on Thursday that it would commit an additional$ 100 million to the Financial Sector Technology and Innovation Grant Scheme to aid financial institutions in developing capabilities in quantum and artificial intelligence technologies.
Grants may be provided to encourage the adoption of quantum technology and safety innovations in Singapore, as well as to increase computer security readiness.
The offers can also be used to assist financial institutions in developing and deploying AI systems or creating AI programs that can be employed in the sector.