Major events of this period Economy

The Straits Times, July 15, 1975 By Soh Tiang Keng A THREE-POINT strategy to activate the Singapore economy -- by boosting exports, commerce and industry -- was announced by the Government last night. The package of measures, unveiled by the Monetary Authority of Singapore, are: - Reduction of the minimum cash reserve ratio -- funds banks and finance companies keep with the MAS at zero interest -- by one per cent to six per cent. This action will pump $83 million into the banking system. - A cut in the MAS rediscount rate for export and pre-export bills from 6 per cent to 4 per cent. This will reduce the cost of export financing under this scheme from 7.5 per cent to a maximum of 5.5 per cent. - Freeing of interest rates on loans and deposits of banks. This will lead to a more competitive financial environment, taking Singapore another step forward in its goal to become the "Zurich of the East". Analysing the implications of these measures, effective from today, MAS said: "These steps will not only bring about a general downward adjustment in money market rates but also a lowering of the rate of interest for commercial and industrial borrowers. "Exporters will, in addition, benefit from the concessionary rediscount rate in the export financing scheme presided by the MAS." These MAS measures appear to be geared at putting the national economy back on a solid footing following the recessionary tides which swept the regional and the world economy since 1974. Previous Copyright © 1998 Singapore Press Holdings. All Rights Reserved.