The tightening of Singapore’s monetary policy earlier this month won’t completely counter price pressures, as efforts to reduce foreign workers in the economy push up business costs, the central bank signaled.
“While changes in the foreign worker policy are necessary to ensure a more efficient allocation of resources and a more productive workforce over the medium term, the latter will take time to come to fruition,” the Monetary Authority of Singapore said in its Macroeconomic Review today. The policy tightening is “intended to temper, but not fully offset, the pass-through of these supply-side cost increases,” it said. Full story
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