a key milestone in 2013 was launch of rmb clearing facilities in singapore. more importantly, a broader ecosystem is taking shape. • mas has entered enhanced bilateral currency swap arrangement with people ’ s bank of china ( pboc ) in mar 2013 : – the size of the swap arrangement has doubled to rmb300 billion. – the scope of the facility has been expanded to allow short - term liquidity to be provided to promote market stability. • the industrial & commercial bank of china ( icbc ) singapore branch has commenced rmb clearing services in may 2013. • we have since seen issuance of four rmb bonds amounting to rmb2. 5 billion. this is a promising start. • this month, mas issued rules allowing participating banks to conduct foreign exchange ( fx ) conversion in china via the rmb clearing bank in singapore for the settlement of eligible cross - border trade. • and the move by china last week to extend rmb qualified foreign institutional investor ( rqfii ) privileges to singapore means that financial institutions in singapore can expand their rmb product offerings to cater to needs of their investors. • mas will work closely with the industry to develop the infrastructure and capabilities necessary to fully tap on opportunities created by rmb internationalisation. conclusion let me sum up on how mas has done on its key functions. bis central bankers ’ speeches • monetary policy. our tight stance since 2010 is paying off. inflation has come down to within our comfort zone. but there is no room for complacency. wage and cost pressures will persist and bear close watching. • reserve management. we made good investment returns last fy. but in singapore dollar terms, we have recorded a loss because of strength of currency. this is not a cause for concern because it is the foreign currency value of the reserves that matters. • financial stability. our financial system is sound. it will be resilient against a normalisation of global monetary conditions. but household balance sheets are a source of concern – not at the aggregate level, but a significant minority could be over - leveraged. hence, the variety of macroprudential measures we have taken over the last three years. • financial supervision. we are fully compliant with international standards, and have taken strong measures to ensure we remain a clean and trusted financial centre. we have stepped up to meet enhanced global standards on information exchange and have intensified our supervision of financial institutions to ensure we keep illicit money out from our financial centre. • financial

ravi menon : monetary authority of singapore ’ s annual report 2012 / 13 opening remarks by mr ravi menon, managing director of the monetary authority of singapore, at the monetary authority of singapore ’ s annual report 2012 / 13 press conference, singapore, 23 july 2013. * * * good morning. welcome to mas ’ annual report press conference. i would like to highlight five key messages today. • first, macroeconomic outlook better this year than last ; • second, strong s $ more than offset good returns on mas ’ investments ; • third, banking system sound but build - up in household debt worrying ; • fourth, stepped up efforts to ensure we remain clean and trusted financial centre ; • fifth, good progress in key drivers of financial centre growth. gdp growth stronger and cpi inflation lower this year compared to last let me start with the economy. the overall macroeconomic outlook this year is better than last year. barring shocks, singapore ’ s gdp growth will be stronger and cpi inflation lower in 2013, compared to 2012. economy comfortably on track to meet 1 – 3 % growth forecast the singapore economy will comfortably meet the growth forecast of 1 – 3 % for 2013. growth was estimated at 2 % in h1 and should pick up further in h2 first, the advanced economies are in better shape this year. • tail risks have receded. there is less likelihood of a eurozone break - up or a fiscal cliff in the us. • growth in the us is gaining momentum, supported by consumer spending and the strengthening of the housing market. corporate profitability is also rising. • in japan, expansionary macroeconomic policies will lift private consumption and net exports. • in the eurozone, the pace of contraction has moderated ; and exit from the recession may be in sight for several economies towards end of year. second, there has been some consolidation in asian domestic demand but the export sector will gradually improve. • the slowdown in china has so far been measured. consumption and investment growth is moderating amidst tighter financial conditions. job creation is strong and the labour market tight. china ’ s gdp growth for 2013 is unlikely to fall below 7 %. • in some of the asean countries, public spending has eased. china ’ s slowdown has softened demand for commodities and this could dampen broader intra - regional trade flows. • but anticipated pick - up in exports to advanced economies will partially offset some of these headwinds in asia. bis central bankers ’ speeches third, there are several