This ecosystem is selfreinforcing, creating a strong “clustering” effect that has been a key growth driver for Singapore’s insurance market. 25. As Singapore continues to develop itself as a global insurance market with the ability to write not just Asian risks but global risks, many insurers are also making plans to set-up their fund management arms to manage their growing investment portfolios in the region. In addition to honing investment skills, there is also a general consensus on the need to strengthen internal risk management expertise, as well as deepen data and modeling capabilities, so as to attain a strong understanding of local market risks. To better manage the risks of more complex products, as well as aggregate portfolio risks, many are also increasingly leveraging on the external expertise of the sell-side bank and capital market players, as well as fund managers in Singapore. 26. Singapore is also highly committed to research and development, and is establishing itself as an innovation centre of excellence. To respond to the challenges of an ageing Asia, it is imperative for Singapore to be at the forefront and lead the development of retirement financing solutions for individuals, businesses and governments in Asia. Research is an upstream activity preceding product development. To differentiate yourselves through innovation, we would strongly encourage the industry to continue to conduct Asian-focused retirement security research in collaboration with research institutes in Singapore, such as  9  2009 OECD and IMF estimates.

Moreover, our educational standards have not been able to prop up our low productivity level and lag behind in many important areas. Without the necessary adjustment now raises the question of how Thailand could maintain our competitiveness going forward. Third, we have been too negligent on environmental and ecological issues. As a large portion of the Thai population remains in the agricultural sector and all of whom rely on quality natural resources for food and income, preservation of environment and natural resources should be our top priority. Our irresponsible actions—from massive burning of fossil fuels to excessive use of plastic containers—contributed to the overall deterioration of the global environment. And, as we have observed, climate change has resulted in increasing frequency as well as severity of natural disasters. The painful experience of the great floods of 2011 should be a case in point, as these floods were the result of rampant deforestation, new developments blocking natural water ways, and clogged drainage system from careless waste disposal. 2  Credit Suisse. “Global Wealth Report.” 2017. 3/6  Many other environmental issues continue to highlight our negligence. These include a recent report detailing Thailand as the new dumping ground for global electronic wastes; or that certain toxic chemical banned in a number of countries around the world is still widely used by farmers in Thailand. Fourth, entrenched corruption remains a major obstacle to achieving long-term focus. Paying bribes and granting favors are harmful practices that incur unnecessary costs and create distortions in resource allocation.