Fiscal policy is focused on promoting long-term economic growth, rather than at cyclical changes or distributing income.
As a result of its healthy fiscal position and consistent budget surpluses, Singapore has a high level of foreign reserves and the strongest sovereign credit rating in Asia.
Singapore as a Financial Hub
Singapore constantly re-evaluates its longer-term economic strategies and policies to adapt to changing challenges and priorities.
MAS has released an industry transformation map (ITM) for financial services to develop Singapore as a leading global financial centre in Asia – one that connects global markets, supports Asia’s development, and serves Singapore’s economy.
The roadmap outlines growth strategies by business lines, programmes for upgrading skills, and an agenda for continuous innovation and technology adoption.
These plans build on Singapore's political and economic stability, excellent telecommunications and infrastructure, strategic location and a skilled, educated workforce.
Together, they have contributed to Singapore's rapid development into a dynamic business and financial hub in Asia.
Despite the challenging global environment, there are many opportunities for Singapore. These include:
Strong market potential in many Asian markets and other emerging markets.
Well positioned to tap into several growth sectors. For example, the rise of the middle-class and urbanisation in Asia will increase demand for finance, hub services, logistics, as well as urban solutions.
Opportunities in the digital economy to transform industries and raise productivity in sectors like advanced manufacturing.
MAS' ITM for the financial sector aims to support Asia’s development with plans to develop Singapore in the following areas:
Asian centre for capital raising and enterprise financing.
Full service Asian infrastructure financing hub.
Leading centre for Asian fixed income.
Global capital for Asian insurance and risk transfer.
To transform the financial sector, the ITM will also will facilitate innovation in the financial sector and encourage the adoption of technology for increasing efficiency and creating opportunity.