This is a slight dip of 1.2% from 2010, but not bad, considering the weak performance of global equity market and the volatile financial markets in general. Indeed, we have seen a more diversified base of asset managers offering a greater variety of investment strategies. The number of investment professionals increased by 15% last year. And we continue to see strong interest from global fund houses seeking to set up or expand their Asian presence. 26 of top 30 global asset managers in the world have a presence in Singapore Second, the corporate debt market. The outstanding stock of corporate debt – in Singapore Dollars and non-Singapore Dollars – increased by 9% year-on-year to $ billion as at end 2011. And despite a more difficult market environment, Singapore Dollar bond issuance  BIS central bankers’ speeches  5  remained robust last year, at $ billion, compared to $ billion in 2010. Non-Singapore dollar bond issuance volume was also buoyant, growing 110% year-on-year. Third, the insurance industry. Non-life insurance gross premiums recorded growth of 14.5% in 2011. Almost 60% of total non-life gross premiums written in 2011 were sourced offshore, demonstrating Singapore’s role as an international insurance centre. Fourth, the Asian Dollar Market. This is the pillar of the Singapore financial sector. Banks in Singapore draw in foreign currency deposits globally, and deploy these funds to serve the financing and treasury needs of individuals, corporations and institutions in Singapore and beyond. Offshore lending expanded last year, with non-bank loans growing by 17%.

This will cover companies incorporated in Singapore, which hold as their subsidiary or subsidiaries, banks, insurance companies, or both, but does not itself conduct banking or insurance business. Third, regulation of the fund management industry. All fund management companies will have to meet the enhanced competency, business conduct, and capital requirements by August. Those with assets under management greater than $ will have to be licensed, while those below this threshold may operate under the “Registered Fund Management Company’ regime, which will replace the existing “Exempt Fund Manager” regime. I will now touch on the performance and development of Singapore as a financial centre. Financial centre: well-positioned for growth Singapore financial sector activity subdued in weak global environment, but longer-term prospects remain bright Singapore’s financial sector contracted on a sequential basis for two consecutive quarters in Q4 2011 and Q1 2012, amidst heightened risk aversion in global financial markets. We expect financial services activity to remain subdued given uncertainty and weakness in the global economic environment. Activities such as trading – which are very sensitive to sentiment – bore the brunt of adjustment. But other activities – tied to Asian demand – have remained resilient. They are well-positioned for growth. Asia’s demand for financial services will continue to be driven by rapid urbanisation, the demographics of a growing middle-class, and the rise of regional multinational companies in need of funding. Let me highlight a few of these growth areas. First, asset management. As at end-2011, total assets managed by Singapore-based asset managers amounted to $ trillion.