MAS posts S$10b net loss as Singapore dollar soars

[specuvestor]

well, look at it as a whole - MAS loses, GIC and Temasek are so-so, but the strong sgd policy leads to massive capital inflows propping up consumption which generates taxes into the G coffers.

not sure what the net-net is but the fact that the strong sgd policy has been ard for a while suggests that the G profits more as a whole.

Still, i have always thought the strong sgd policy is a recipe for high domestic inflation=> a low usdsgd leads to a low SOR leads to asset inflation. Might be good for the coffers but tough luck for the young blokes.

If the economy does well as a whole, the taxes will take care of itself. If a company does well, the stock price will take care of itself. It is extremely myopic and dangerous when management/ govt looks at the wrong indicator. That's what happened during the Singapore Inc period of the 90s when govt focus was on PnL rather than long tern economic competitiveness and growth. The problems we have with asset inflation and infrastructure is not a last year issue. The roots started during the Goh era.

Used to be SGD controls our inflation because controling COGS was paramount to consumption cost. However with asset inflation and naturally labour inflation, operating expense becomes more critical. Hence MAS is now at a rock and a hard place as an appreciating SGD did little to curb CPI by controlling import cost as domestic cost of living soar, as evidenced in the past 5 years.