why the MAS will keep its SGD appreciation bias

[krafty]

https://sg.finance.yahoo.com/news/sticking-guns-why-mas-keep-090600084.html

A shift is unlikely given rising labor and business costs.
According to a report released today by the Bank of America Merrill Lynch, the Monetary Authority of Singapore is likely to keep its “modest and gradual” Singapore dollar NEER appreciation bias at its October policy meeting.
The report noted that a shift is unlikely amidst rising labor and business costs in the country. Wage cost pressures remain amid a tight labor market and stricter foreign worker policy, especially given that foreign worker levies were again raised in July.
“Both unit labor and business costs are showing a strong pick-up in 2Q. Sharply higher toll fares on the JB-Singapore causeway may also increase food & other costs. In our view, the government's constructive outlook on the second half coupled with signs of further rising labor and business costs reduces the likelihood of a surprise shift to a neutral bias,” noted the report.

 

[Leckmichamarsch]

does not concern the man in the street as raw or cooked food still rising ...... car ownership still sky high
Condo living still costs an arm or a leg................PAP banzai

 

[krafty]

good for travellers like me, who seek the sand, sea, booze and the women...:o

 

[SgGoneWrong]

Millions of fts waiting at the gate to enter sg to work with a stronger currency. 6.9 mil will be reached soon and next kpi 10 mil. Huat ah!

 

[mojito]

Yes, it is an excellent exit strategy for PAP minions to pad up their nest eggs abroad.

 

[SgGoneWrong]

Yes, it is an excellent exit strategy for PAP minions to pad up their nest eggs abroad.

True.
Long sgd, short other currencies.

 

[KNNBXCB]

This Krafty is the eat medicine one?

 

[krafty]

just had my usual 2 bottles of heineken at coffeeshop, feeling great now...

This Krafty is the eat medicine one?

 

[krafty]

keeping a currency too high is not good for overall economy.

 

[KNNBXCB]

just had my usual 2 bottles of heineken at coffeeshop, feeling great now...

Good to know that bro. If got PRC beer girl, rmb to give FR

 

[krafty]

cheers... she is a MILF JB lady, quite, fair looking and nice buttocks...

Good to know that bro. If got PRC beer girl, rmb to give FR

 

[SNTCK]

pity those SME . high operating cost

 

[krafty]

possibly, when SGD is high, you can expect huge investments by Temasek or GLC overseas during this time frame.

 

[mojito]

keeping a currency too high is not good for overall economy.

Nothing can be further from the truth!

A strong currency is bad for exports, yes but what is it sg exports hmm? Better still to keep import costs low so corporate profits are higher. And what does sg import the most? Foreign labour!

See, the masses can starve and the state can fail but the Lees, their minion and their cronies must come out ahead. The BOA-ML economist is clear-sighted indeed.

 

[frenchbriefs]

well we have to export something otherwise how do we make money?we are a value adding economy,we import something add value to it and export it to other countries.....whether or not that value is useful or valid or substantial is another question,what matters is we make money in the process.

Nothing can be further from the truth!

A strong currency is bad for exports, yes but what is it sg exports hmm? Better still to keep import costs low so corporate profits are higher. And what does sg import the most? Foreign labour!

See, the masses can starve and the state can fail but the Lees, their minion and their cronies must come out ahead. The BOA-ML economist is clear-sighted indeed.

 

[krafty]

we dun have much to export anyway, we are not a manufacturing hub.

 

[mojito]

well we have to export something otherwise how do we make money?we are a value adding economy,we import something add value to it and export it to other countries.....whether or not that value is useful or valid or substantial is another question,what matters is we make money in the process.

The bulk of these benefits accrue to government and corporate profits. What is leftover for households is shared between the local and foreign workforce.

Foreign workforce is better bang for the buck. Not only are they cheaper, for the same cost they are more experienced. Labour cost competitiveness is then worsened by ICT and CPF contributions.

Now you keep the appreciation bias, local workforce becomes even more uncompetitive and foreign labour more attracted to working in singapore. What government, if not a malicious one, would do that to their own people?

 

[frenchbriefs]

Don't worry the bias will be erased once we implement minimum wage.if these foreign trash are truly more competitive we welcome companies to hire them...at 16 dollars an hour.this way foreigners will truly create jobs for sinkies...by supporting us while they work.

The bulk of these benefits accrue to government and corporate profits. What is leftover for households is shared between the local and foreign workforce.

Foreign workforce is better bang for the buck. Not only are they cheaper, for the same cost they are more experienced. Labour cost competitiveness is then worsened by ICT and CPF contributions.

Now you keep the appreciation bias, local workforce becomes even more uncompetitive and foreign labour more attracted to working in singapore. What government, if not a malicious one, would do that to their own people?