We see a similar potential with infrastructure funds, business trust and project bonds. We have also put  2  BIS Review 11/2008  in place a PPP framework to encourage public private participation in Singapore infrastructure projects. With this, we have successfully tendered for the ITE College West and the Singapore Sports Hub, the first and the largest sports facilities infrastructure PPP in the world. We believe these initiatives will bring business opportunities for the debt capital market community based in Singapore. Singapore prides herself to have established the reputation of a trustworthy and reliable financial centre, build on political stability, strong legal system, and a sound regulatory and supervisory framework that raises disclosure standards, fosters market discipline, and provides for greater transparency. As a regional hub, Singapore is also well connected to the rest of the world through our extensive network of FTAs, including Australia, India, Japan, South Korea and the US. Over 600 local and foreign financial institutions based here are able to access the growing pool of investors and opportunities; fueled by the strong performance of asset management activities in Singapore. The diversity in the sources of funds flowing into and through Singapore has also broadened, with increasing financial flows coming from South Asia and the Middle East. We have also taken the proactive and responsive approach to changes in the marketplace; having constant dialogues with institutions and listening to market players, like yourselves, to create a conducive business environment for financial institutions to operate in Singapore.

Local currency bonds are gaining the attention of foreign investors both from the perspectives of diversification and return enhancements, coupled with the optimism of appreciating Asian currencies. On the other hand, Asian bond markets are also growing as an increasingly attractive asset class for domestic borrowers as they steer clear from the international market. This indicates that the economies are increasingly relying on domestic demand and intraregional credit investments. Infrastructure financing, for instance, is also regaining importance in a number of Asian economies. The key is to have sufficiently deep and efficient markets to effectively channel the high bank liquidity and abundance of savings in Asia into regional investments. With the robust outlook in Asia, this will continue to underpin the need for investment opportunities to fuel the growth engine. Singapore, right in the heart of Asia, is poised to play a significant role as a gateway for global investors to access the Asian bond markets. We are also poised to serve as the centre for debt financing in the area of infrastructure, real estate and transportation related projects. Project sponsors are increasingly tapping our debt capital market in financing major infrastructure related projects in Asia. Since we started developing the REIT market in 2002, there are now 19 REITs and 1 property business trust listed on the SGX with an aggregate market capitalization of approximately $ billion. Issuance of Commercial MortgageBacked Securities (CMBS) remained strong on the back of a healthy REIT market.