•  For property loans, tighter loan-to-value ratios, higher minimum cash downpayments, caps on loan tenures, and guidance on total debt service ratios. •  For car loans, tighter loan-to-value ratios and caps on loan tenures. •  For credit card loans, new proposals to: –  help individuals with credit problems avoid further debt accumulation;  –  improve due diligence conducted by FIs; and  –  empower consumers to make informed decisions. These measures helped to limit risks facing financial institutions but more importantly helped to encourage greater financial prudence among borrowers. •  It is important that we act now to limit the build-up of leverage. •  It is much harder to do so later, when growth might be weaker, interest rates higher, and property prices lower. Stringent efforts to ensure Singapore’s financial centre remains clean and trusted Next, let me touch on the efforts we have been making to ensure that Singapore remains a clean and trusted financial centre. •  There has a growing concern internationally on the use of financial centres to hide illicit funds or evade taxes. Singapore takes seriously the integrity of its financial centre and is fully committed to international efforts to combat money laundering and tax evasion. The policy measures Singapore has taken on this front well-known; so I will not elaborate. •  Laundering proceeds of tax evasion and tax fraud is now a crime in Singapore, effective 1 July.
•  There is broad based strength in both financial intermediation and asset management activities. Inflation forecast revised down to 2–3% but core inflation pressures will persist For the first time in three years, CPI inflation has come down closer to historical trends and within MAS’ comfort range. •  CPI-All Items inflation averaged 4.2% over 2010–12. Car prices and imputed accommodation costs contributed around 60% to overall inflation during this period. •  But this year, there has been a clear and significant step-down in inflation. CPI-All Items inflation in H1 is estimated to have dipped below 3%. CPI-All Items inflation forecast for 2013 is therefore revised down to 2–3%, from 3–4% previously. •  The sharp fall in car prices following the tightening of financing restrictions on motor vehicle loans is a major factor. COE prices have risen recently and could be volatile for the rest of year, but this should be accommodated within the 2–3% inflation forecast range. •  Accommodation costs are also increasing at a slower pace. More completed housing units are coming on stream, easing the pressure on market rentals. But MAS’ Core Inflation, which excludes car prices and imputed accommodation costs, will show moderate increase to around 2% or slightly above by end-2013, due to continuing tightness in labour market. •  This is a percentage point lower than recent peak in Q1 2012, and in line with the historical average. •  The Core Inflation forecast for 2013, therefore, remains at 1.5 to 2.5%.