IMF praises Singapore for policies
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Oct 25, 2010 - Straits Times
by Aaron Low
THE International Monetary Fund (IMF) has praised Singapore for implementing policies to limit the impact of the huge levels of investment funds flowing into Asia.
Although property prices have risen here, these capital inflows have not posed 'significant concerns' to Singapore, an IMF statement said on Monday.
'The authorities have rightly introduced 'macro-prudential' and other measures to forestall excessive exuberance and meet the growing demand for housing,' said the IMF in its release of the economic outlook report for the region.
Across Asia, policymakers have been troubled by the large inflows of capital from the advanced economies, created by loose monetary conditions, with interest rates often close to zero. This has been driving up currencies, stock markets and property prices to multi-year highs across Asia, stoking fears that another asset bubble is forming.
To combat rising asset prices and inflation, the Singapore Government embarked on a series of measures to curb speculation in the property market in August and also allowed the Singdollar to appreciate further. In recent months, it has also boosted the supply of HDB flats and land for private housing development.
Economists had mixed reactions to IMF's assessment. Economists such as DBS Bank's Irvin Seah agreed with the IMF and said while there are signs of concerns, these are not alarming: 'As the Government pointed out, most of the speculation in the market is caused by locals and not foreign capital.'
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IMF not concern as long as no trouble for them.
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IMF..............another privately owned international loansharking operation..................they only want people to borrow money from them and pay hundreds of percent of interest........
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LOL IMF