MAS Records 10.2 billion Profit
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MAS records $10.12b profit
Recovery in global markets helps overturn $9.2b loss last year
05:55 AM Jul 30, 2010SINGAPORE - The Monetary Authority of Singapore (MAS) has recorded a net profit of $10.12 billion in its fiscal year to March 2010 on the back of a recovery in the global markets.
This overturns a loss of $9.2 billion a year ago. The central bank also announced new initiatives to help banks better manage liquidity.
A stronger Singapore dollar, interest and dividend income, and asset valuation gains boosted the latest earnings at MAS. These came with stronger economic growth.
But MAS believes the pace of growth in the first six months may not be sustained in the second half.
"Growth is likely to have peaked at the middle of the year, and will moderate to a more sustainable rate, as external demand slows after the post-crisis bounce from stimuli measures and inventory effects wane worldwide," said MAS managing director Heng Swee Keat.
MAS said it expects inflation to rise in the second half, on higher car and commodity prices. But increases in consumer prices are likely to range between 2.5 per cent and 3.5 per cent.
Property prices, on the other hand, are not likely to significantly affect near term inflation, said the central bank.
Mr Heng said measures have also been taken to cool the property market. These included the withdrawal of the interest absorption scheme and lowering the loan-to-value ratio to 80 per cent. MAS said it will also ensure that banks remain prudent in their lending.
Food prices, however, may trend up.
"We've got droughts in parts of Asia, but we also have flooding in other parts as well. Perhaps there may be an issue of supply disruption causing the prices of meat or vegetables to rise but no where near the peak of 2008," said Mr Song Seng Wun, regional economist at CIMB.
MAS said its current monetary policy stance, tightened in April, remains appropriate to contain inflationary pressures. The central bank will also issue short-term Bills in the second quarter of next year to help banks manage their liquidity.
The MAS Bills will be phased in gradually, with an initial sum of up to $20 billion.
Banks can sell them or pledge them as collateral.
Observers said the introduction of the MAS Bills will help deepen the capital markets and provide financial institutions more flexibility in managing liquidity.
The Bills will also offer another safe avenue for the banks to park their cash, especially during this period where liquidity is plentiful.
The central bank will also enhance the standing facility which is the key liquidity facility for the banks.
With immediate effect, MAS will accept Sing dollar debt securities issued by AAA-rated and zero-weighted public sector entities. -
I didn't know MAS was to generate profit ? I thought it act as a central bank of Singapore......
Anyway I am even not sure if this is a real surplus given that Govt had previously dip into the National Reserved.
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oooo.....now the australian bushfire victims in victoria wants toclaim $4billion for damages and deaths of 200 australians.the source today revealed that the overhead power lines which singapore power was maintaining brokedown n caused the fire.
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expected losses fromspore:
1)Optus-------------due to poor connections and expensive rates which seem to be hacked by hackers or bit rates are weird n slow as compared to telstra teleco
2)Singapore Power-----------due to victoria fires that killedoff 200 australians fromaoverhead powerline that fell on some trees.the victims and family are asking $4bil in losses.
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2 Aug 2010 ... total cost of the fires at $4 billion. (FHR_Fire(141) image by Alex Miroshnichenko, CC2.0) ... with damaged hardware replaced over a number of months. ... The bushfires that ravaged Victoria on 7 February 2009 claimed 173 lives and .... RT @zdnetaustralia: AFACT lawyers claim iiNet authorised its ...
meanwhile:
The data below is derived from the submissions of general insurance companies following large events incurring cost to the community and insurers. It is provided by the Insurance Council of Australia.
West Qld – Flooding - March, 2010 - $46.7m
Mackay – Flood, storm - February, 2008 - $410m
Central Queensland (including Emerald/Rockhampton) – Flood, storm - January, 2008 - $70m
Rockhampton to Cairns – December 1990 - Flood, storm - $32m (equivalent cost to recover in 2007 would be $147m).
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Originally posted by Terminator Hitman:
oooo.....now the australian bushfire victims in victoria wants toclaim $4billion for damages and deaths of 200 australians.the source today revealed that the overhead power lines which singapore power was maintaining brokedown n caused the fire.
I'm still aiming to buy into SP Ausnet as part of my portfolio
Breakdown in Aussie, not in Sg can liao.
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They make at the expense of our poor souls. And returns?