Singapore’s central bank boss faces a tough start

SINGAPORE, Sept 5 (Reuters Breakingviews) - Central banks pride themselves on being predictable. The Monetary Authority of Singapore surprised on Monday announcing that its longest-serving chief Ravi Menon will retire at the end of this year, just months after his term was renewed. The timing isn’t ideal. His successor Chia Der Jiun will inherit multiple problems. Singapore is one of the most trade-dependent economies globally and has narrowly averted a technical recession, but it is feeling the impact of a slowdown in China, its top trade partner. There’s also an eye-catching S$1 billion ($740 million) money laundering scandal in the city to deal with.

Chia is a safe pair of hands. He is a former deputy to Menon, and currently a permanent secretary at the manpower ministry after spending 18 years in various stints at the central bank. He has led MAS’ financial stability assessment of the city state and completed a two-year secondment to the International Monetary Fund. Menon, nonetheless, leaves big shoes to fill. During his 12-year term, he built up Singapore’s reputation as a global fintech hub and boosted its appeal as a leading financial centre. The hub’s very success also brings greater tests from rising property prices to illicit fund flows. Chia will be busy. (By Anshuman Daga)

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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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