Singapore authorities support protection of financial system stability

The discussion tackles measures which are said to include both macro supervision and micro measures to handle the anticipated increase in flows of capital into the region.

According to OCBC, BI Deputy Governor Halim Alamsyah said on Frday that authorities from Indonesia, Singapore, Malaysia, Thailand and Philippnes have agreed to discuss over possible coordinated measures to tackle the threat of capital inflows.

As expressed in the recent G-20 meeting, and also supported by recent comments by IMF and the World bank, the possibility of more stringent (albeit temporary) capital controls are now thought to be beneficial to protect the financial system stability of a country or a region in this case.