1. Firms Households World Government Labour Consumption Investment Taxes And Transfers Net Exports Intermediate Goods Productivity Shock Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Capital Exchange Rate Policy Shock Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Price Rigidities Tobin-Q This is designed for illustrative and general reference purposes only.

2. Firm’s demand local labour, foreign workers and capital to produce goods & services for five sectors Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods Productivity Shock Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Capital Exchange Rate Policy Shock The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Price Rigidities Tobin-Q Net Exports This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

3. Firms Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods government spending and policy shock Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Tobin-Q Net Exports (1) Foreign GDP and the global IT book-to- bill ratio which impact manufacturing exports, and (2) Foreign export and import prices which impact global demand for Singapore’s exports and domestic demand for imports for production and consumption. Productivity Shock Labour Supply Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

4. Firms Household wealth based on labour income & ownership of capital World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Tobin-Q Net Exports Productivity Shock Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

5. Firms Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods Changes in fiscal policies that affect households & firms. Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Tobin-Q Net Exports Productivity Shock Labour Supply Shock Foreign Demand Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

6. Firms Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities net exports Productivity Shock Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Investments (flow) adjust so that the capital stock (stock) remains sustainable in the long term, resulting in hump-shaped profiles of key variables. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

7. Firms Households World Government labour Consumption Investment Taxes And Transfers Intermediate Goods Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wages are sticky due to forward- & backward-looking inflation in the Wage Inflation- augmented Phillips curve. Tobin-Q Net Exports Productivity Shock Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

8. Firms Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Tobin-Q Net Exports (1) Changes in Foreign worker policies that affect relative wages, and (2) Ageing demographics which constrain overall economic growth. Productivity Shock Government Spending And Policy Shock Foreign Demand Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

9. Firms Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods productivity shock Capital Changes in MAS’ monetary policy via the S$NEER are transmitted through the Singapore economy. The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Tobin-Q Net Exports Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

10. Firms Households World Government Labour Consumption Investment Taxes And Transfers Intermediate Goods Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Nominal prices are rigid due to adaptive expectations. Tobin-Q Net Exports Productivity Shock Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Exchange Rate Policy Shock This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows

11. Firms Households World Government Labour Consumption Investment Intermediate Goods Changes in labour efficiency and capital efficiency in the different sectors permanently impact production. Capital The Model Structure of MMS Capital Good Producers Final Good Producers Wage Rigidities Tobin-Q Net Exports Labour Supply Shock Government Spending And Policy Shock Foreign Demand Shock Exchange Rate Policy Shock Price Rigidities This is designed for illustrative and general reference purposes only. Legend: Red denotes an exogenous shock Orange describes model dynamics Arrows depict real flows Taxes And Transfers