Singapore Finance Minister Tharman Shanmugaratnam said the government will introduce more measures to cool the property market if prices rise too quickly.
Tharman said that while the government’s three rounds of cooling measures since September 2009 have had “some calming effect” on the market, there is still a need to remain vigilant against excessive capital inflows.
“The government will continue to monitor the situation closely, and take additional steps if necessary, to ensure financial stability and sustainable asset markets,” Tharman said in Singapore’s parliament Monday.
Tharman was responding to questions about the expected impact on the Singapore economy arising from the Federal Reserve’s announcement earlier this month of more quantitative easing measures.
Tharman said the government is “not contemplating introducing capital controls, but will continue to rely on a range of policy tools to ensure that capital flows do not threaten financial stability or cause a property market bubble.”