Second, we will work to take full advantage of the new FTAs currently being negotiated to create greater financial flows into Singapore, and to enable our financial institutions to access these markets. In our Comprehensive Economic Cooperation Agreement (CECA) with India, we are exploring closer integration of our financial markets. Both countries stand to benefit if our financial sector players can operate seamlessly between the two markets. While there are many regulatory and other issues to be addressed, we see this as a unique opportunity for both India and Singapore. Empowering consumers to achieve fair dealing Third, we must empower consumers to achieve fair dealing. This will help us to develop a more informed and savvy consumer market, which is necessary to grow a vibrant financial sector. With liberalisation, there are now more channels for savings that entice investors with higher yields, such as bonds, equities, unit trusts, hedge funds, and insurance and annuity products. These products also carry higher risk. Has consumer sophistication risen in line with the complexity of financial products? As consumers seize new investment opportunities, how far should MAS safeguard their interests? MAS no longer practises merit-based regulation of products. It is neither feasible nor desirable for MAS to prescribe what consumers can or cannot invest in, how these products should be priced, or what terms and conditions should govern transactions. This would inhibit business enterprise, restrict consumer choice, and raise compliance costs. MAS cannot intervene in commercial disputes with individual institutions or arbitrate on contractual matters.

Deepening talent pool Third, deepening Singapore’s talent pool. As we move towards providing higher value-added services, we will face more intense competition for talent. We need to deepen our talent pool by training the local workforce whilst stepping up efforts to attract foreign talent with the requisite specialist skills. The industry needs professionals with market experience and skills to deal with the increasingly complex and volatile financial markets. To meet this demand, we need to enhance our training and development initiatives. Besides co-funding financial skills training under the Financial Sector Development Fund, we are actively promoting Singapore as a financial training hub. Discussions are now on-going with the newly established Wealth Management Institute and INSEAD as well as major institutions to develop corporate training centres and corporate universities. We would also like to build up Singapore’s financial research capabilities with an Asian and emerging market focus. We are currently exploring the possibility of establishing a financial research institute, in partnership with established financial research institutes worldwide. Enhancing market discipline To enhance market discipline, we have facilitated the establishment of industry-sponsored but independently-run complaints-handling processes and mechanisms for customers to settle disputes with banks and insurers. The banking industry now has a Consumer Mediation Unit and the insurance industry the Insurance Disputes Resolution Organisation (IDRO). Presently, we are working with the securities industry to study the feasibility of an industry-based dispute resolution scheme for the capital markets.