Chia Der Jiun: Remarks on the MAS Annual Report 2025/2026

Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun addressed the MAS Annual Report 2025/2026 Media Conference on 28 July 2026. He provided updates on central banking, financial sector development, regulation, and key performance highlights.

Chia began by discussing recent economic developments and monetary policy. He noted that the global economy has proven more resilient than expected despite successive shocks. The global outlook initially faced concerns over rising tariffs and trade uncertainty, followed by the Middle East conflict in late February 2026. Even with elevated tariff rates, global trade and industrial production continued to expand.

The energy supply disruption since March was cushioned by inventories and supply-demand adjustments, with energy markets rebalancing at lower inflationary ranges.

The surge in global AI investment, particularly in data centers, chips, and computing infrastructure, supported the global economy's expansion. Singapore, exposed to these crosswinds, saw a 6% year-on-year growth in H1 2026, up from 5% in H2 2025. Inflation picked up from a low base, projected to remain elevated until the second half of 2027.

MAS maintained an appreciating stance in monetary policy, tightening in April to counter rising imported inflationary pressures, which have since been reflected in domestic consumer prices.

Chia highlighted the need to monitor the sustainability of AI investments, as global growth and financial stability are highly dependent on their continuation. While near-term investments show strong support, medium-term uncertainty exists. MAS remains vigilant to risks and is well-positioned to maintain medium-term price stability and curb excess volatility in the Singapore Dollar Nominal Effective Exchange Rate.