leong sing chiong : remarks - official opening ceremony of the fm global centre remarks by mr leong sing chiong, deputy managing director ( markets & development ) of the monetary authority of singapore, at the official opening ceremony of the fm global centre, singapore, 8 november 2022. * * * thank you, mr malcolm roberts, distinguished guests, ladies and gentlemen, good morning. it is a pleasure to join you at the official opening of the fm global centre. 2 the launch of the fm global centre is yet another significant milestone in fm global's long and rich journey with singapore. since 37 years ago, the singapore office has grown significantly, and became the asia pacific headquarters for fm global in 2019. today, it provides commercial property, risk advisory and engineering solutions to over 400 clients, across 36 markets in singapore and the region. the global centre is the second biggest centre, outside of the us. 3 the choice of singapore to house the fm global centre is very timely, and is reflective of two key factors. first, strong growth prospects. asia's property insurance industry is projected to grow from s $ 122 billion in premiums in 2020, to almost s $ 200 billion in 2025. 1 this is due to continued commercial expansion and infrastructure development as part of the region's growth. second, it also reflects asia's growing need for natural catastrophe and climate risk financing solutions, given the region's significant exposure to climate risk. by 2050, it is estimated that climate change losses could cost asia more than a quarter ( 25. 6 % ) of 2019 gdp. 2 4 insurers are important partners in helping governments and businesses manage physical and transition risks. the fm global centre's testing and research on how properties can be impacted by fire, floods and natural hazards at varying levels of intensity, can provide valuable data insights. these data insights can support the development of ex - ante climate risk insurance solutions for businesses in the region. it goes to the heart of insurance solutions a€ “ which should increasingly focus on ex - ante risk reduction and loss prevention, beyond just ex - post risk financing. the centre will also provide hands - on loss prevention education to businesses and individuals, through interactive simulation labs and learning areas. 1 / 3 bis - central bankers'speeches 5 the insurance industry can also play an important role in empowering the development of the green economy in asia. singapore, for instance, as part of our energy decarbonisation

growth engines of the economy in the last three years – manufacturing and financial services – have stalled in recent quarters. manufacturing is in recession and financial services has stopped growing in sequential terms since the middle of last year. the economy has been supported, however, by the domestic facing industries, including those benefiting from increased travel - related and tourism activity. growth will remain weak in the near term. manufacturing and financial services are expected to remain in the doldrums amid the weaker external outlook. growth in the domestic facing sectors is likely to taper, as consumer demand slows in the face of higher interest rates and more moderate wage increases. singapore's gdp growth for 2023 is expected to slow to a below - trend pace within mti's current forecast range. consequently, the output gap is estimated to turn mildly negative, to around - 0. 5 %, from the positive 0. 6 % recorded last year. inflation in singapore has clearly peaked and has discernibly moderated. in assessing inflation trends, it is instructive to focus on month - on - month momentum and price trends going forward rather than year - ago averages. core inflation on a month - on - month seasonally adjusted annualised basis has come down sharply, to 3. 6 % in may 2023 from a peak of 9. 1 % in june 2022. the disinflation has been broad - based across most components in the core cpi basket. notably, imported inflation has turned negative, reflecting the decline in global energy and food prices and the effects of a stronger singapore dollar. even excluding oil, whose prices have fallen most sharply, imported inflation was minus 1. 2 % in may this year. the fall in inflation momentum is gradually translating to lower year - on - year inflation. core inflation on a year - on - year basis moderated to 4. 8 % in apr - may from 5. 4 % in q1. headline inflation slowed to 5. 4 % from 6. 1 % over the same period. singapore should see further reductions in inflation by the end of the year. one, imported inflation should remain negative over the rest of the year. the decline in global energy and food prices should weigh on the costs of intermediate and final consumer goods. the strengthening singapore dollar will further dampen imported inflation. 2 / 16 bis - central bankers'speeches two, the domestic labour market is showing early signs of cooling off. a recovery in the non - resident workforce is helping to