HIDDEN_ADDENDA, PRIME MINISTER'S OFFICE (MONETARY POLICIES AND FINANCIAL SUPERVISION)

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**PRIME MINISTER'S OFFICE(MONETARY POLICIES & FINANCIAL SUPERVISION) **

MR GOH CHOK TONG
Senior Minister and Minister-in-charge of MAS

1 Our monetary policy framework has served us well over the years in promoting sustainable, non-inflationary economic growth. MAS will continue to strengthen the monetary policy formulation process by enhancing its forecasting, surveillance and research capabilities. This will ensure that the conduct of monetary policy continues to be robust and flexible in the light of significant structural adjustments in the economy and greater volatility in the external environment.

2 Singapore’s financial sector is well regulated, sound and dynamic. In its oversight of the financial services sector, MAS will enhance the risk-based supervisory framework that it has been developing in recent years, in line with changes in the industry and evolving risk issues. As our local players expand their activities regionally, MAS will intensify its efforts in consolidated and integrated supervision. MAS will also seek to further raise standards of market conduct in the industry, by refining existing disclosure standards and strengthening consumer education. Singapore’s position as a leading financial centre in Asia will be enhanced as MAS continues to cultivate the wealth management business as well as build greater depth and liquidity in domestic capital markets. Emphasis will be placed on new growth areas such as alternative investments, structured products, trust and philanthropy advisory services.

3 MAS is committed to fight money laundering and terrorist financing. As with all major financial centres, our efforts will be guided by the cardinal principle of customer confidentiality. While banking confidentiality will not be permitted to act as a shield for criminal activity, it will not be lifted upon spurious requests to fish for information. Our domestic laws contain safeguards to protect the privacy of banking and other financial information and we will continue to require that these be observed.

4 MAS and the Ministry of Finance are preparing for the hosting of the International Monetary Fund/World Bank September 2006 Annual Meetings in Singapore. The event will showcase the two Bretton Woods Institutions’ role in international efforts to reduce poverty and foster economic development. We will use the occasion to promote Singapore as a global city and international financial centre to live and do business in. As the event will be held ten years after the Asian Financial Crisis, it will also be timely to bring world attention to the growth and business opportunities in Asia as a whole and ASEAN in particular.