These are all very positive developments and you will be joining a vibrant community of financial institutions here in Singapore. Japan and the region’s recovery and growth Daiwa’s increased focus in South Asia attests to the dynamism of the region. Not only has the region shown resilience, it is now powering ahead. Led by ASEAN economies such as Vietnam, which is surging ahead strongly, India, Pakistan and the Middle East too are beckoning out to investors with their growth prospects. Trade and investments within the Asian region, and between Asia and the Middle East continues to grow. Notably, Japanese foreign direct investments into ASEAN has been increasing steadily again since 2003. In fact, it has reached more than $ billion1 which even outpaced that into China in 2006. The Japanese economy too, continues to impress. Economic conditions in Japan have improved remarkably and the data released suggests a continued and sustained growth. Japanese corporates are raking in record profits and capital investments too are surging ahead. They have once again begun to spread their wings overseas. Supporting these corporates, financial institutions like Daiwa too have benefited from this increased business activities. 1  Sources: Prepared by JETRO from Ministry of Finance Balance of Payments Statistics and Bank of Japan foreign exchange rates. BIS Review 72/2007  1  Partner to growth Where does Singapore fit into this climate of abundant growth opportunities? Located right at the confluence of trade links and business opportunities, Singapore has become a valuable partner to corporates and financial institutions like Daiwa.
And third, sharp and abrupt changes in exchange rates of late. Academic economists like to put labels on economic periods. And I have referred to some of these labels earlier in my speech: the “Great Depression” of the 1920s, the “Great Inflation” era of the 1970s and early 1980s, and the “Great Moderation” we have witnessed since then. It is my hope that the increased uncertainty we are facing is conjunctural and does not become structural, and that we are not entering an era which, later on, academic economists could label as the "Great Uncertainty”. I believe that central banks are both willing and able to prevent this from happening. Therefore, at this juncture it is particularly important that the Eurosystem remains focused on its fundamental mandate of maintaining price stability over the medium term. The Governing Council of the ECB has indicated in this respect that it is fully committed to acting in a firm and timely manner to ensure that any risks to price stability over the medium term do not materialise and that medium to longer-term inflation expectations in the euro area remain solidly anchored at levels consistent with price stability. Such anchoring is a prerequisite for monetary policy to make an ongoing contribution towards supporting sustained economic growth, well-functioning markets and job creation in the euro area. This is true now more than ever, when we are confronted with a panorama which is more uncertain than that which we have faced during recent years. Thank you for your attention.