Distinguished participants, recent industry estimates indicate that Islamic finance is set to continue growing at an annual rate of about 15%. The increased trade between the subSaharan region and Islamic nations in the Middle East only reinforces our view that partnerships among the corporate players between the two regions will foster more developments in the area of Islamic finance. Ladies and gentlemen, the Government of the Republic of Zambia (GRZ) recognizes that the limited access to financial services and low number of products available to the different sectors of the economy has hindered the development potential of Zambia’s economy. There is need therefore, to revitalize the financial sector so that it meets the challenges of accelerated and sustained investments in key sectors of the economy. This can only be achieved where the financial system is able to improve its allocative efficiencies by providing appropriately designed products and services to all segments of the population like the Muslim community. Recent developments in the financial sector world-wide offer some encouragement that working together could extend the range and reach of financial services that are available to our people. Still a lot remains to be done to extend financial services to the majority of our people, particularly those that are economically active and to foster ongoing sustainability of our financial institutions. It is against this background that Bank of Zambia accepted your invitation to present the keynote address as a way of marking our commitment to ensuring that the financial system caters for all segments of the population.
Growth was robust across both traditional and alternative assets on the back of higher valuations and continued inflows to Asian markets. We continued to anchor the operations of global asset managers in Singapore. Example: AIA set up its first group-wide regional investment hub here. Efforts to grow the private financing market are also showing signs of promise. Alternative AUM grew by an average 16.9% p.a. over 2016 and 2017, led by venture capital and private equity. There are currently about 220 VC and PE managers located in Singapore with the majority of PE managers focused on growth and buyout strategies. Around 85% of their investments are across Singapore and the region, targeting higher growth sectors such as consumer and retail, healthcare and IT. We are also doing well in wealth management, with private banking AUM expanding an average of 6.6% p.a. over 2016 and 2017. A growing number of Asia’s wealthiest families have set up Family Offices in Singapore to access investment opportunities in Asia. Singapore’s growth as a wealth management hub rests on its reputation as a clean and trusted jurisdiction. Singapore’s activation of a broad network of Automatic Exchange of Information, or AEOI, relationships, reaffirmed its commitment to international standards of transparency and tax cooperation. Singapore is emerging as a leading Asian bond market, with corporate debt issuance volumes rising by 22% p.a. over the last two years. MAS’ Asian Bond Grant scheme has supported Asian companies to raise international capital in Singapore.