It requires firms which are strong in technology and know-how, with systematic managements and meritocratic practices, firms which can hold their own against foreign competition, and with the potential to grow into significant industry players. Even then, such firms will complement, not replace, foreign investments by MNCs. Following this philosophy, Singapore’s economic policies will therefore remain externally oriented. We will continue to push for free trade, welcome investments, and integrate into the global economy, even as we promote entrepreneurship and seek to build Singapore firms into regional players. The pressures of globalisation can be uncomfortable, and the changes they force upon us can be painful. But globalisation has helped us to build a stronger, more resilient economy, one better prepared to hold our own against formidable competitors, and deliver a high and rising standard of living for our population. On capital account liberalisation, countries are now acutely aware that sound macroeconomic management is a key prerequisite, without which no regime of exchange controls can deliver stability. They also realise that they must sequence liberalization judiciously, and strengthen financial supervision and prudential safeguards as they liberalize. In the aftermath of the crisis, no Asian country imposed capital controls, apart from Malaysia. But several tightened safeguards to reduce the risks of destabilising capital flows, and to shield domestic foreign exchange and money markets from speculative pressures emanating from abroad. They improved monitoring, and discouraged trading in currencies that was not related to the real economy.

More than half of the global population already live in cities. There are 23 megacities today; and it is projected that this number will double by 2030. Most of these new megacities will be in South and East Asia. OECD estimates that more than half of the infrastructure needed by 2030 has not been built yet. Growing cities will need to simultaneously deal with the problems of scarce resources and climate change. Even developed countries can be vulnerable to extreme climate changes. Hurricane Sandy left a quarter of New York City’s population without electricity, and shut down vital transport infrastructure including all 3 airports and all subway lines. Whether or not a global agreement on mitigating the effects of climate change is reached or not, there will be tremendous business opportunities for companies that can provide solutions to address the challenges of resource efficiency and to back up vulnerable systems and infrastructure. Innovative urban solutions and investments in infrastructure R&D will be sorely needed. As an early adopter of sustainable development strategies, Singapore is happy to share our experience learnt from sustainable growth strategies. The annual World Cities Summit, hosted in Singapore, serves as a platform for the exchange of leading-edge ideas on building liveable and sustainable cities. Beyond the exchange of ideas, Singapore is pushing the boundaries in sustainability research. Two National Innovation Challenge programmes are currently on-going,  2  BIS central bankers’ speeches  addressing the themes of 1) Energy Resilience for Sustainable Growth and 2) Land and Liveability.