These would, in turn, affect Singapore’s growth, particularly in trade-related sectors and sentimentsensitive segments in the financial services. BIS central bankers’ speeches  1  11 Having said that, barring significant escalation, moderate spillovers to Singapore from these geopolitical developments should be accommodated within current forecast range of 2–4% growth. Overall inflation has moderated but underlying price pressures persist 12 Let me move on to inflation. 13 In assessing inflation in Singapore, we look at two main indicators. First, All-Items or headline inflation, which is the most comprehensive measure. Second, core Inflation, which excludes the volatile components of car and housing costs and is a better measure of underlying inflation. 14 Core or underlying inflation in turn has two sources: imported and domestic. 15 I will start with imported inflation, which has been flat. On average, imported inflation has been zero so far this year, compared to same period last year. The appreciation of the Singapore Dollar has neutralised the impact of foreign prices on domestic prices. 16 However, the prices of non-cooked food items – although imported – have been volatile and generally higher. Papaya prices went up by 16% (y-o-y) in first half of this year, while banana prices went up by 18%. This was due to the effects of adverse weather in Thailand and Malaysia. At the same time, the prices of oranges went down by 7% and tomatoes by 10%. Looking beyond fruits, sugar prices were down, wheat prices were up, while the price of Thai white rice was broadly stable.

35 MAS issued a consultation paper earlier this week with proposals on the safeguards for retail investors in unconventional investment schemes. Let me elaborate here on our thinking and rationale. 36 Many retail consumers have ventured into unconventional and unregulated financial products promising higher yields. But these products may also entail risks that are not well understood by retail investors. MAS has therefore decided to extend to these unconventional products regulatory safeguards that apply to capital markets. 37 In extending boundaries of regulation, we are guided by the need to balance costs and benefits. •  If we take too broad-brush an approach, we could end up regulating all commercial arrangements involving some form of investment return. For example, buying gold jewellery or piece of art that could appreciate in value over time. This will only add to costs without advancing consumer interests. •  But if we craft the regulatory framework too narrowly, products may be deliberately structured to fall outside the regulatory perimeter. For example, restricting regulation to land-banking arrangements will fail to capture other schemes operating on similar premises, such as investments in ostrich farms or in plantations. 4  BIS central bankers’ speeches  38 Therefore, taking into account market developments in Singapore, MAS will selectively enhance regulatory safeguards for retail investors in buy-back arrangements involving precious metals, which has the same economic effect as borrowing cash from customers; and collectively managed investment schemes. The latter includes land-banking and forestry schemes.