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Economics

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Singapore ranks 4th on The Economist’s 2023 crony-capitalism index

Singapore ranks fourth in The Economist’s 2023 crony-capitalism index, trailing behind Russia, the Czech Republic, and Malaysia. The index assesses how plutocrats profit from rent-seeking industries that benefit from state favoritism in 43 countries with a GDP over $250 billion. Singapore’s billionaire wealth from crony sectors amounts to over 10% of its GDP.

Thai parties in financial bidding war as election heats up

Thailand faces deep-seated inequality and rising poverty levels as it struggles to recover from the COVID-19 pandemic. Despite promises from political parties to ease poverty through populist policies, analysts warn that sustainable economic development and structural changes are necessary to address the country’s economic challenges. The focus needs to shift to spending on those in need and providing better education to increase earning potential rather than untargeted handouts.

European Central Bank expected to slow pace of rate hikes

The European Central Bank is expected to increase interest rates for the seventh-straight time to tackle high inflation but may opt for a smaller hike at its six-weekly meeting. Analysts predict further rate hikes are “likely to remain in the pipeline.”

Indian budget airline Go First files for bankruptcy

Go First, India’s fifth-largest domestic carrier, has filed for bankruptcy protection due to “faulty” engines from Pratt & Whitney, its exclusive engine supplier for the Airbus A320neo fleet. The airline has been in a dispute with the US aerospace company over issues that cost it US$1.32 billion in lost revenues and additional expenses, leading to the grounding of 25 aircraft. The bankruptcy was a necessary step, said Go First, due to an “ever-increasing number of failing engines” and Pratt & Whitney’s failure to comply with an arbitration order.

Chinese investors drive spike in Singapore’s conservation shophouse transaction, prices surpass $7,000 psf

During an interview with EdgeProp.sg, Loyalle Chin, the director of PropNex ShophouseHuat and associate group division director of PropNex Realty, observed that “a fresh wave of overseas investors, including those from China”, who are driving up prices for commercial shophouses in Singapore’s CBD. In early April, a 999-year leasehold, two-storey intermediate conservation shophouse along Amoy Street was sold for $21.8 million, which is $3.112 million (16.65%) higher than its last sale in November 2022. The buyer, NC Properties, is said to be linked to Hong Kong’s New Century Group and has invested in conservation shophouses in the Telok Ayer and Circular Road neighbourhood.

Singapore’s inflation to remain elevated in the short term, but expected to moderate in H2 2023

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry said that Singapore’s import prices have declined on year-on-year terms, easing global supply chain frictions. However, unit labor costs are expected to rise further in the near term. Overall, MAS core inflation is expected to stay elevated in the next few months before slowing more discernibly in H2 2023.

Nearly 3,500 wealthy millionaires are expected to become Singapore citizens in 2023

Singapore is expected to attract around 3,500 high-net-worth individuals (HNWIs) with a net worth exceeding US$1m to become citizens in 2023, with most of them being wealthy individuals from China, according to New World Wealth’s Andrew Amoils. Each new citizen is expected to have an average investable wealth of at least US$6m. Singapore added 2,800 HNWIs in 2021, ranking fifth among the top 20 cities with the most millionaires worldwide, and is emerging as Asia’s top wealth management centre.

Experts predict potential recession for Singapore in first half of 2023, SBR reports

Singapore’s economy contracted by 0.7% in Q1 2023, prompting concerns of a potential “technical recession” in H1 2023, as reported by Singapore Business Review. Weaker performance in several sectors, particularly manufacturing, has raised alarms despite Singapore’s exit from the acute phase of the pandemic. Financial experts predict improvement in H2 2023.

Dark side of Singapore’s obsession with economic growth at the expense of its citizens

The opinion piece talks about Singapore’s heavy reliance on foreign workers comes at a cost of high cost of living, and stagnating wages for many Singaporeans, despite the government’s emphasis on economic growth. Six out of eight occupational categories in Singapore have hardly seen any real increase in pay over the last 21 years. More innovative and sustainable approaches should be taken towards economic development that prioritize education, training, entrepreneurship, and social welfare.

Monetary Authority of Singapore asks banks to keep quiet about inflow of wealth from China

Singapore has reportedly asked banks not to discuss the origins of significant sums of money flowing into the city, particularly from wealthy Chinese individuals, according to a report by Financial Times.