? let me say a few quick words about our 2023 sustainability report which we are releasing today alongside our annual report. the report gives a good account of how sustainability is integrated across mas'various functions : as a central bank safeguarding singapore's ofr against climate risk ; as a financial regulator ensuring a climate - resilient financial sector ; 13 / 16 bis - central bankers'speeches as a promoter of the financial sector developing a vibrant sustainable finance ecosystem ; and as an organisation trying to reduce its own carbon footprint. today, i will focus on an area we have not spoken about much - how mas is safeguarding the ofr against climate risk. it is probably the least news - worthy of the issues i have covered today but likely to be the most critical for the future. in 2021, mas developed and published a climate risk management strategy to enhance the climate resilience of our investment portfolio. we conducted a climate scenario analysis for the whole portfolio. we also developed carbon intensity metrics for the equities portfolio, which we extended to cover corporate bonds last year. we then set out the portfolio actions we will take to reduce the carbon intensity of our equities portfolio by up to 50 % by fy2030. these included : defining the stewardship principles for our external fund managers to engage their portfolio companies on climate - related risk issues ; launching a climate transition programme to mitigate the impact of climate transition risk ; and excluding investments in companies that derive more than 10 % of their revenues from thermal coal mining and oil sands activities. let me provide an update on our climate scenario analysis, climate portfolio actions, and stewardship efforts. we have examined the possible impact of climate change on our long - term investment returns under four scenarios. the best - case scenario is a paris - aligned orderly transition where global warming is capped at 1. 5 - degrees celsius. early and ambitious policy measures drive the adoption of low carbon technologies and result in quick reduction in global greenhouse gas emissions. the worst - case scenario is a failed transition with temperatures rising to 4 - degrees emissions continue to rise and the world is faced with catastrophic and irreversible climate change. a first middle scenario is a delayed disorderly transition that keeps temperature rise within 2 - degrees. but this is at the cost of disruptive policy actions in response to an alarming spike in extreme weather events around the globe happening at the same time. a second middle scenario is a too - little - too - late

affect the government budget? let me start with currency translation effects. about 70 % of the net loss or s $ 21. 4 billion was due to the negative currency translation effects of a stronger singapore dollar. as we have explained on many past occasions, currency translation effects arise when mas'official foreign reserves ( ofr ) which are held in foreign currencies are reported in singapore dollars. if the singapore dollar weakens against the foreign currencies maintained in mas'ofr, we will experience positive currency translation effects. conversely, if the singapore dollar strengthens against the respective foreign currencies, we will experience negative currency translation effects. the singapore dollar appreciated significantly during fy22 / 23 as mas tightened monetary policy to dampen inflationary pressures. as you know, singapore's monetary policy is centred on managing the exchange rate of the singapore dollar against a trade - weighted basket of currencies. mas tightened exchange rate policy three times during fy22 / 23 amid rising inflation. the trade - weighted exchange rate of the singapore dollar strengthened by 6. 5 % over fy22 / 23 – the highest rate of appreciation in the last 10 years. negative currency translation effects are not cause for concern. they do not affect the external purchasing power of the ofr. thus, they do not affect mas'ability to conduct monetary policy or support financial stability. the ofr are meant to be used in foreign currency – to support the singapore dollar in times of currency weakness ; or to provide us dollar funding to the banking system in times of financial stress. a negative currency translation effect in the ofr when expressed in singapore dollars therefore does not affect mas'ability to carry out its functions. market players understand this, and this has never been an issue for mas. in 10 out of the last 15 fys, mas recorded negative currency translation effects – not surprising given that the singapore dollar has generally been strengthening against other currencies. it does not make sense to try to avoid such negative currency translation effects. 5 / 16 bis - central bankers'speeches for example, if mas wanted to hedge against such negative currency translation effects, we would have to sell us dollars from the ofr and buy singapore dollars. that would negate our interventions in the foreign exchange market to implement monetary policy and cause the singapore dollar to appreciate much more, thereby harming the economy and, not to mention, depleting the ofr. the remaining 30 % of the loss, or s $ 9