StockTalk(7.6): Monetary Authority of Singapore's FY2023 loss hits record high
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MAS, the Monetary Authority of Singapore, has posted a net loss of S$30.8 billion for the financial year ended Mar 31, 2023, due to the effects of monetary policy tightening to bring down inflation.
The loss was mainly due to the strengthening of the Singapore dollar and weak investment gains, as both bond and equity markets performed poorly. However, Ravi Menon, managing director of MAS, said that the negative currency translation effect should not be a concern for MAS because Singapore’s monetary policies are centered upon managing the rate of the single exchange rate of the Singapore dollar against a trade-weighted basket of currencies. As a conservative measure, MAS raised its issued and paid-up capital by S$25 billion to S$50 billion.
Reports suggest Ravi Menon may leave MAS this year, but no official statement has been made regarding his departure.
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ZnWC : How will MAS's record loss impact Singapore's investment landscape?
The main purpose of MAS loss is to maintain Singapore currency against others especially USD. This is to ensure Singapore buying power is strong enough to weather any inflation. In fact the result is showing as the headline inflation forecast has revised down to 4.5% - 5.5% end of the year. But from the investment perspectives, it revealed some uncertainty about Singapore economy.
What measures can investors take to mitigate the effects of MAS's loss on their portfolios?
Singapore stocks will expect some volatility in the short term due to weaker global economy and US-China tension. My measure is the same as those used to reduce the impact by recession risk - diversify my portfolio and buy in value stocks when price is cheap. As I take long positions, short term volatility is not a concern, just profit from the dividend.
What impact could Ravi Menon's potential departure from MAS have?
No impact as MAS works as a team and there are many capable people like Ravi Menson to lead the team.
Kopikarp : The impact of the Monetary Authority of Singapore's (MAS) record loss on the country's investment landscape is not immediately clear and will only become evident over time. However, this development highlights an important lesson for investors: the critical need for diversification.
Diversifying across different asset classes and regions is one key measure investors can take to protect their portfolios. This involves not putting all their financial eggs in one basket, but instead spreading their investments across a broad mix of assets such as equities, bonds, real estate, commodities, and even different geographical markets. The aim of diversification is to mitigate risk. In this context, it can help cushion the potential impact of a localized financial setback, such as the loss experienced by MAS.
Even as the Singapore dollar strengthens and the local bond and equity markets see weaker gains, having investments in other currencies or overseas markets can help offset potential losses. Similarly, holding a variety of asset types can guard against downturns in any one sector.
102765799 : MAS record loss may have bearings but not immediately visible unless the losses are extended over a period. if the monetary policy proves to be successful, hopefully there'll be a reversal.
Starchin : Any one is replaceable ..think will use AI for investment decision
Blessedme : Where did they use all the money to account for the loss?
102684281 : how did they lost 30 Billion ???? and still get High bonus ...is beyond my understanding
888 Robin 888 : Please ask OBSNS if there are any
TCDAQ. OLD is a bit of a problem, isn't it?@FUTU