Goh Chok Tong: Strengthening Singapore’s position as a leading financial centre in Asia Speech Mr Goh Chok Tong, Senior Minister and Chairman of the Monetary Authority of Singapore (MAS), at the 2005 MAS Staff Seminar, Singapore, 29 November 2005. *  *  *  Let me begin by welcoming you to the 2005 MAS Staff Seminar. It has been a busy but good year for the industry and MAS. Positive global and regional outlook 2. Globally, 2005 looks set to end on a positive note. The IMF has projected world economic growth of 4.3% this year and sees the potential for further growth next year. The US economy remains resilient. It has withstood progressive interest rate hikes and the devastation caused by Hurricanes Katrina and Rita. While the oil market remains tight and the US current account and budget deficits continue to be cause for caution, the Greenspan era should end positively. 3. Asia is doing well. East Asia's combined economy has been growing by an average of 3.4% per year between 2000 and 2004. Take away Japan, East Asia's annual growth rate is even more impressive - 6.4%, well above the global average of 3.8%. East Asian countries have accumulated massive foreign reserves and now account for nearly 60% of global reserves. Global investors looking for better returns have shown strong interest in Asian equities, bonds and alternative investments. 4. The blockbusters in Asia's growth story are China and India. I have spoken about them in some detail last year.
Stakeholders have rated MAS favourably in most areas. For example, MAS' role in supervising financial institutions and bringing about a stable financial system in Singapore received positive feedback. I am heartened by this. More importantly, the industry also noted areas for improvement. Stakeholders, for instance, felt that MAS officers could be more attuned to commercial reality when formulating policies and decisions. MAS could improve the timeliness of its decision-making. MAS has taken note of the feedback and will work to improve its performance in these areas. 32. MAS' regular dialogue and consultation with the industry has worked well. We will now take this a step further by involving the industry at the early stages of policy formulation. This will give industry players the opportunity to shape policies. MAS will also be more open to suggestions of alternatives that achieve the same objectives. But for this new approach to produce results, both MAS and the industry must work together to build a high level of trust between them. Leveraging and building on our reputation 33. Looking ahead, we must continue to build and deepen relationships with the industry and our foreign counterparts. 34. To showcase Asia to the international community, the centrepiece for next year is the 2006 IMF and World Bank Annual Meetings. In partnership with the private sector and relevant agencies, we are organising a host of seminars and events. Collectively, they are known as Singapore 2006 or S2006. S2006 is intended to create intellectual buzz and profile the dynamism and optimism in Asia. 35.