Improvement in opportunities for change but … A similar gloss can be applied to the realignment of economic policy from the second half of the 1980s to the middle of the 1990s. There have been a number of reforms aimed at creating stability and opportunities. The credit and currency markets have been deregulated, components of the social security system have been reformed, a tax reform has been implemented, targets have been established for government finances, price stability is enshrined in law and the Riksbank has been given an independent status. All this represents good possibilities of the Swedish economy facing a stable future as we step over the threshold to a new millennium. The question is, however, whether the new information technology will be implemented in the far-reaching ways that are necessary in order to reap the really large benefits. Let us look at another period in Sweden’s economic history when things did not go quite as well. After World War II, when activity in the industrialised countries recovered and competition grew, partly because trade barriers were lowered, it became necessary to realign production in Sweden. The need for change resembled what we are beginning to discern on the horizon today. For much of this post-war period, however, wage costs rose at a rapid rate. Profitability in Swedish business was accordingly under pressure from two fronts: growing competition from the rest of the world and rising wage costs.
Activities in Islamic Finance are growing with the entry of new players, and MAS is honoured to host the 6th Islamic Financial Services Board Summit in May next year. 25. The asset management industry in particular has shown robust growth in 2007. Our latest Asset Management survey shows that the industry has continued its strong doubledigit growth for the seventh year, with a 32% increase in assets under management (AUM), reaching almost $ trillion for the year 2007. In tandem with this growth, the number of investment professionals rose by about 22% to close to 2,200. 26. Reflecting Singapore’s role as an international financial centre, the sources of assets managed in Singapore as well as their investment destination remains diversified. The AsiaPacific region continues to be a key driver of growth for the industry. More than 80% of the total AUM was sourced from outside Singapore with Asia-Pacific accounting for 44% of the total. Almost 60% of the funds managed in Singapore are invested in the Asia-Pacific region. 27. The asset management industry has also seen a greater diversity in terms of players, strategies and products. Large traditional managers continue to expand and anchor their investment capabilities here. Singapore has also grown in importance as a centre for alternative investments such as hedge funds, private equity and real estate. The strong growth of the asset management industry has in turn drawn in several ancillary service providers such as fund administrators and prime brokers.