MAS says increased S$ volatility not expected

At its annual report briefing on Friday, MAS said it was "comfortable" with its current policy stance of an appreciating Singapore dollar.

Heng Swee Keat, Managing Director, of the Monetary Authority of Singapore, said: "We do not see the changes in the renminbi or the ringgit to have a major impact on the Singapore dollar on our exchange rate regime. Because our exchange rate is managed through a weighted basket of currencies of our major trading partners, it has allowed us to accommodate changes that have taken place. So we do not see a need to change the regime or the band at this point."

Mr Heng said: "In the long term, I think within Asia, it will give us a better buffer to absorb any sort of external shocks, so those are positive for the Asian economy."

Mr Heng said: "We expect a pick up in the IT sector in the second half which should be positive for the Singapore economy. And in terms of our partners, the strengths of our partners, it is also not a negative development. So I think overall, our assessment that in the second half we will see a pick up, has not changed. In fact, the data coming in has reinforced our views on the second half."