Going forward, and despite an impact from the war on the sectors previously mentioned, a continued downward trend in the overall unemployment rate is projected over the following years, converging closer towards full-time employment conditions in 2024, owing to the projected ongoing economic expansion and the expected manageable impact from the war. The latter is supported by survey data from the European Commission, where employment expectations by businesses across services and industry remained broadly unchanged since the outbreak of war. Turning now to inflation, the Harmonised Index of Consumer Prices (HICP) increased by 7,7% during the period January-July 2022 compared with 0,9% in the corresponding period of 2021. During the period under review, the surge in the domestic HICP, is mainly attributed to the sizeable adverse consequences of the Russian invasion of Ukraine and also due to the ongoing consequences of the pandemic. More specifically, the energy component of HICP is the largest contributor to the surging trend of domestic headline inflation (with around 45% share on HICP) during the period under review mainly due to the developments related to the Russian invasion of Ukraine which resulted to the exceptional soaring in the prices of oil and gas in international markets. Food prices also registered sizeable yearly increases (7,1% during Jan-July 2022 Vs -1,3% in the corresponding period of 2021) in the aftermath of the latest ongoing geopolitical tensions. At the same time, the remaining components of the HICP such as services, non-energy industrial goods also recorded significant yearly price increases.

There are no secrets to the strategies, because the factors for success are not unique to Singapore. The challenge is in their execution and implementation. Here are five things that we have set out to do in order to excel as a financial centre in the New Economy. Enhance business environment First, we are seeking to further enhance our conducive pro-business environment. Economic and political stability, an efficient and impartial legal system, comprehensive and up-to-date market infrastructure, and fiscal discipline that allows low taxes are key preconditions, more important than special incentives for the financial sector. Singapore has established a reputation for delivering these preconditions, which we will maintain and improve upon in future. Build talent pool Second, we are building up our talent pool. In a knowledge-intensive industry like financial services, Singapore will not get anywhere without world-class talent. We are making a concerted effort to attract foreign talent who can make a contribution to Singapore, and to integrate them into our economy and society. We are also nurturing home talent to its full potential through a good education system for the young and ongoing training opportunities for those in the workforce. As Asian companies begin to use more complex strategies and products, our financial institutions need the expertise to advise on these sophisticated techniques. From time to time they will fly out experts from London or New York to service clients, but we must also build up our own indigenous capabilities.