We are enhancing synergy with the Thai economy through the Singapore-Thailand Enhanced Economic Relationship (STEER) programme. Last week's second STEER meeting in Bangkok saw the signing of nine business agreements ranging from tourism to logistics. MAS and the Thai Securities Exchange Commission also signed a letter of intent for closer cooperation in capital markets. 14. Next month, Singapore and Vietnam will sign the Framework Agreement on Connectivity, which will help us leverage on each other's strengths and complementarities. Areas of cooperation include finance, ICT (Information and Communications Technologies), investments, trade and services, transport and education. Singapore is the second largest foreign investor in Vietnam, after Taiwan but ahead of Japan. The Connectivity agreement will further open up opportunities for Singapore firms in Vietnam. Seizing the opportunities 15. Governments in Asia see the benefits of economic cooperation and are building closer links, both on a multilateral as well as bilateral basis. This will enable the private sector to take full advantage of the rich array of opportunities. I strongly encourage Singapore-based companies and financial institutions to ride the growth momentum. 16. Let me highlight a few such opportunities. As capital restrictions are gradually liberalised in their countries, Chinese and Indian individuals, financial institutions and corporates will begin to invest overseas. Singapore-based financial institutions could partner them to use Singapore as a base to expand into the region. 17. The Comprehensive Economic Cooperation Agreement (CECA) is a win-win outcome for Singapore and India.
During my visits to the Middle East, I sensed their interest in investing in Asia. Many are keen to engage China and India but their businessmen told me that they were not so familiar with doing  2  BIS Review 83/2005  business in China. Singapore can serve as a bridge, given our knowledge and connections. Furthermore, Indian, Chinese and Singaporean financial institutions could tap into Islamic funds from the Middle East for infrastructural and other major projects in India and China. 21. As an international financial centre, Singapore is well placed to intermediate and facilitate investment flows between Asia and the Middle East. Already, funds managed in Singapore from the Middle East have increased by over 70% to $ billion in 2004. But this is still a small figure, given the trillions of dollars of wealth in the Middle East. We should work with credible partners to offer a wider suite of Islamic financial services and products. The role of MAS 22. MAS will continue to support and partner the financial industry to seize the opportunities. Last year, I highlighted three strategic priorities for MAS and our financial sector. They are first, strengthen our position as a leading financial centre in Asia; second, maintain excellence in a riskier environment; and third, leverage and build on our reputation. We have made good progress on all three fronts. Strengthening our position as a leading financial centre in Asia 23. As MAS Chairman, I regularly meet CEOs of global banks and big companies.