Growth has been good and this has contributed to maintaining demand for working hours. At the same time, demographic developments have been relatively favourable and there have been ample unutilised resources in the economy following the crisis of the 1990s. However, when it comes to the labour supply, there is less reason to be optimistic about future developments. Developments in working hours have been held back during recent periods for structural reasons. The demographic situation, with a declining percentage of the population of working age, will deteriorate significantly in the long term, particularly after 2010. In addition, working hours per person may instead tend to decline in the long run when greater prosperity is taken advantage of to increase leisure time. The assessment in the October Inflation Report is that employment, labour force participation and mean working time will rise during the economic upturn forecast for the coming years and will contribute to an increase in the number of hours worked of approximately 1 per cent a year during the period. In a longer perspective, it is more realistic to assume that the labour supply will not make any contribution to growth. The simulations in, for instance, the Long-term Planning Commission’s most recent report, indicate that the number of hours worked on average will not show any significant change. However, the simulations show that the situation could be improved significantly, at least in the short term, if measures were taken to increase the labour supply.
What makes Singapore attractive as an international financial and wealth management centre? Wealth desires stability. Singapore’s political and economic stability, transparency in governance, and sound and predictable regulation, are often cited by private bankers and clients alike as the fundamentals underpinning its attraction. Efficiency, connectivity, and sound infrastructure are added advantages. Singapore has been ranked by the World Bank, for the sixth year running, as the easiest place to do business in the world. Perhaps the decisive advantage is the larger financial eco-system that exists in Singapore. Strong capabilities in asset management, foreign exchange and derivatives trading, coupled with deep and liquid capital markets – these are the ingredients that make Singapore the ideal base for the intermediation of wealth in Asia. But to use a common phrase in the industry, past trends are no guarantee of future performance. Whether Singapore continues to do well in wealth management will depend critically on three imperatives.   First, we must raise competencies in the industry.   Second, we must enhance market conduct.   Third, we must keep the financial sector clean. Strong competencies Let me begin with raising competencies. The wealth management industry in Asia is facing a shortage of talent. Private banks are rapidly expanding to meet the needs of a growing affluent class. If Singapore is to sustain its growth as a wealth management centre, there is an urgent need to raise competency levels in the industry and to build a strong pipeline of talent.