2  BIS Review 47/2007  In the services sector, we have strengthened the key areas of tourism, healthcare, education and financial services. We have been focusing efforts to become an international fund management and wealth management centre. More financial institutions are using Singapore as a regional hub to conduct their investment activities. Singapore’s asset management industry has continued to grow, with assets under management surpassing $ billion. This is complemented by the presence of an active financial research community. Singapore is also a hub for innovative equity products, including REITS (Real Estate Investment Trusts), Business Trusts, derivatives and ETFs (Exchange Traded Funds). Singapore currently has 16 listed REITs and 5 listed Business Trusts with a total market capitalisation of about $ billion. Given the huge developments taking place in Asia, more foreign capital will be required and Singapore could be the hub to raise capital for Asian real estate and infrastructure players. We are mindful of rising business costs. Office rental has gone up because of the spurt in demand. It should stabilize as more office space becomes available in the next few years. This year we have cut our corporate tax rates to 18%. I can assure you that our corporate tax rates will always be competitive. Talent, not just banks and investment houses, are drawn to a place where the living environment is clean, green, safe and buzzing with cultural vibrancy and business excitement.
With further harmonisation of rules and regulations and increasing capital market linkages, we look forward to the deepening of ASEAN market liquidity. As financial and capital markets in the region become more integrated, there will be seamless flows of investments and capital. ASEAN has also made a strategic decision to strengthen its organisation politically. ASEAN is finalising a Charter that will lay out a bold and visionary future for ASEAN. It will also provide an institutional framework for the grouping and transform it into a more effective and efficient rules-based organisation. The Charter will be signed at the Singapore Summit in November. Singapore – a global city As for developments in Singapore, we have used the last 10 years to remake ourselves, strengthen our competitiveness and expand our economic space. We have also continued with efforts to enhance Singapore’s position as a gateway to Asia by transforming Singapore into a global city. We have enlarged our economic space by aggressively pursuing FTAs. We have concluded 11, including with the US, India, Japan, South Korea and Australia. We are negotiating 11 more FTAs, including one with China. We have progressively restructured and diversified our economy. Manufacturing will continue to play a key role but we are also moving into more technology- and knowledge-intensive manufacturing. Fostering world-class scientific research and strengthening Singapore’s attractiveness as an R&D (Research and Development) hub is a key priority. More of Singapore’s growth will come from innovation and knowledge.