I actually suspect that this number may understate the economy’s forward momentum. That is because real GDP growth in the quarter was held back by a sharp slowing in the pace of inventory accumulation. In my view, the revival in demand, production and confidence  2  BIS central bankers’ speeches  strongly suggests that we may be much closer to establishing a virtuous circle that will support stronger growth. What I have in mind is a cycle in which rising household and business demand generate more rapid income and employment growth, which in turn bolsters confidence and leads to further increases in spending. The only major missing piece of the puzzle is the absence of strong payroll job growth. We will need to see sustained strong employment growth in order to be certain that this virtuous circle has become firmly established. With respect to the labor market, last Friday’s report helps resolve some conflicting signals. On one hand, the unemployment rate has fallen sharply over the past three months, dropping to 8.9 percent from 9.8 percent two months earlier. On the other hand, payroll employment gains had been very modest and were not consistent with a sustained drop in the unemployment rate. Last Friday we learned that the economy added 192,000 jobs in February, and estimates of previous job growth were adjusted upward modestly. Particularly encouraging is the growth of manufacturing jobs. Over the past year we have added factory jobs at the fastest pace since the 1990s.

They should develop specific risk mitigation policies for sectors posing higher environmental risks and support the transition of riskier customers and investee companies towards sustainable business practices. They should disclose their approach to managing environmental risks and the impact of these risks on their financial performance. Disclosure should reference internationally accepted reporting frameworks, such as those by the FSB Taskforce on Climate-related Financial Disclosures (TCFD). MAS will assess environmental risk in our supervision of financial institutions. This will include assessing how financial institutions integrate environmental risk management with their business operations. Within the next two years, MAS will incorporate climate-related scenarios in our annual stress tests for the financial industry. Disclosure of environmental risk applies as much to non-financial corporates. https://www.mas.gov.sg/news/speeches/2020/harnessing-the-power-of-finance-for-a-sustainable-future  6/13  14/10/2020  “Harnessing the Power of Finance for a Sustainable Future”- Keynote Speech by Mr Ravi Menon, Managing Director, MAS, at the Finan…  Only then can investors price climate-related risks and opportunities and asset managers construct and manage sustainable portfolios for their clients. The Singapore Exchange (SGX) requires listed companies to produce annual sustainability reports on a comply-or-explain basis. SGX will soon include the TCFD recommendations within its existing guidance to assist listed companies with their climate-related financial disclosures. As a central bank and financial regulator, MAS will practise what it preaches. MAS has begun to evaluate the resilience of its Oﬀicial Foreign Reserves under a range of short-term climate-related disruptions and longer-term climate scenarios.