HIDDEN_ADDENDA, PRIME MINISTER'S OFFICE (MONETARY AUTHORITY OF SINGAPORE)

PRIME MINISTER'S OFFICE (MONETARY AUTHORITY OF SINGAPORE): MR GOH CHOK TONG

Senior Minister and Minister-in-charge of MAS

The Singapore economy has performed well this year with strong growth, high job creation and low inflation. Going forward, the economy is expected to moderate to a more sustainable pace reflecting the slowdown in global demand. MAS will remain vigilant in its surveillance of the external environment and the domestic economy. It will enhance its forecasting, surveillance and research capabilities to meet its objective of promoting sustainable and non-inflationary economic growth in Singapore.

Key to Singapore’s reputation as an international financial centre is a well regulated and sound financial sector. MAS will continue its work on developing its risk-based supervisory framework in line with the changes and evolving risks in the financial sector. To face the challenge of supervising local players as they grow regionally as well as in complexity, we will intensify our efforts in consolidated and integrated supervision. We will also continue to work with the Singapore-incorporated banks toward the implementation of the new Basel II capital requirements which are being adopted internationally. MAS will also seek to further raise standards of market conduct in the industry, by refining existing disclosure standards and strengthening consumer education through the MoneySENSE programme. We will also step up our cooperation with regulators in our region and in key financial centres.

MAS will continue its efforts to develop Singapore as a leading financial centre in Asia. We will support the growth of activities such as asset management and build greater depth and liquidity in the domestic capital markets. We will also facilitate the private sector to tap into new growth areas, including treasury activities, infrastructure and structured finance. We will ride on the successful hosting of the International Monetary Fund/World Bank September 2006 Annual Meetings to enhance Singapore’s position as a leading business and financial centre in Asia.