For the region as a whole, the population in this age group will increase by 314 % from 207 million in 2000 to 857 million in 2050. Many nations are finding it increasingly difficult to provide adequately for the needs of their aged through state-provided social security. Faced with such prospects, planning for retirement has become more important, both for individuals as well as public policy to ensure sustainable financing and management of retirement and healthcare needs in the long term. In this context, the development of deep financial markets among ASEAN countries is critical. One of the significant challenges currently facing the insurance industry in this region has been the shortage of long term assets that match the duration of insurance liabilities. While the bond markets in several ASEAN economies have been extensively developed over the last decade, longer-dated papers remain scarce in most countries. This has been a key impediment to the development of private pension products needed to meet the increasing demand for channels through which the population can save for retirement. While there are significant efforts being made to further develop the longer end of the bond market, the engagement between the industry, regulators and Government needs to be maintained and intensified further to take this agenda forward. This is critical both for the management of risks in the industry, and to support sustainable growth in the longer term.
One key driver is the rapid development of Fintech. While the HKMA has done a great deal in the past few years in promoting Fintech, there is still room to further apply new technology in finance in the coming years. This includes, for example, fostering a better ecosystem for Regulatory Technology (or RegTech) and Supervisory Technology (or SupTech). We are also aware that any new risks associated with the increasing use of technology have to be managed. These include for example cyber and data security. We will work with the industry to address these risks. 6. We are also committed to promoting market development opportunities, especially in strengthening the role of Hong Kong as the gateway to the Mainland’s capital markets, in the Greater Bay Area development, and also in green finance. 7. These are rough times. But my colleagues and I will continue to discharge our duties in a professional manner and do our best to serve the people of Hong Kong. 1/1  BIS central bankers' speeches