3 Yet amid this cautious optimism, we should acknowledge the continued unevenness in the strength of the expansion across regions in the global economy, as well as the persistence of policy uncertainties, which will weigh on firms’ long-term spending commitments. We are also confronted with the seeming rise of nationalism and growing populism which can have unpredictable effects on policies and growth. Against this backdrop, the uncertainty over trade policies and the future of the multilateral trading system is another area of concern of trading nations in Asia, as it comes at a time when important underlying structural shifts in global production and trade arrangements are already taking place. 4 In the financial sector, the advent of FinTech – driven by unprecedented mobility, connectivity and computing power – possesses the potential to fundamentally change the way intermediation takes place in the financial sector. 5 Indeed, it seems that continuous shifts and unrelenting changes are the defining characteristics of the future economic and financial landscape. Finding Opportunities amidst Uncertainty 6 While some degree of uncertainty is inevitable in this environment, there remain several broad trends which will unfold and present opportunities which Shanghai and Singapore institutions can leverage together. 1/3  BIS central bankers' speeches  7 First, China’s future direction in financial sector deepening and liberalisation is clear. President Xi Jinping announced at the G20 Summit last year that China would continue with efforts to make the RMB an international currency and further internationalize China’s financial sector.

Shanghai and Singapore financial institutions can work together to encourage Chinese corporates to leverage the scheme and access direct financing for their BRI projects overseas. b. Second, the BRI also presents a good opportunity for promoting sustainable financing, given the potential negative environmental impact from unsustainable forms of infrastructure 2/3  BIS central bankers' speeches  development. China leapfrogged into top position as the largest issuer of green bonds globally in 20161. There is much that Singapore can learn from. To encourage green bond issuances, MAS introduced the Green Bond Grant Scheme in March of this year to offset the costs of external reviews required for issuing sustainability-oriented bonds. Together, Shanghai and Singapore can grow the global green bond market and play important roles in furthering sustainable financing. c . Third, there is also room for Shanghai and Singapore insurers to provide better insurance coverage of BRI projects. BRI projects can leverage insurance pools or consortiums to manage risk exposures of large-scale infrastructure projects. Shanghai and Singapore insurers can participate in regional insurance pools to provide more comprehensive coverage for a wider range of risks, while introducing new projects that would enhance the profitability of these insurance pools. 5 In the FinTech space, Shanghai and Singapore can collaborate in creating a conducive eco-system for FinTech companies and start-ups. The need for collaboration 1  arises from the fact that technology companies are dynamic and continually looking to internationalize their businesses.