Given the objectives of financial inclusion, it is hoped that foreign banks support this initiative given the flexibility that is being accorded to widen the outreach to segments of the economy which are currently underserved. Also embedded within the financial inclusion agenda is the responsibility that banking institutions have towards their customers, and to ensure that adequate information is provided to consumers and investors to make informed judgments. In the area of product development, both the interest of consumers and businesses will be taken into account. Financial institutions that demonstrate their ability to act responsibly can look forward to greater business flexibility to innovate. Financial institutions that uphold the necessary principles in their business strategies stand to reap long-term gains from enhanced franchise value, a strong reputation and positive association with socially responsible values that will engender public trust and confidence. The third area relates to the need for banking institutions to enlarge their sphere of influence going forward given the changing environment. Banks will increasingly be exposed to external developments and the forces of market discipline. There are several particular areas in which banking institutions can take strategic positions to influence such developments. First is to leverage on the “network economy” through strategic alliances. With global integration deepening further at the same time that competitive forces are exerting pressures on margins, the way forward would be to build on strategic alliances to increase capacity and expand reach, while containing costs.

Mr Lim gives a policymaker’s perspective on the role of macroeconomic modelling in public policy  Opening remarks by Mr Lim Hng Kiang, Member of the Board of Directors of The Monetary Authority of Singapore and Minister for Health and Second Minister for Finance, at the launch of The Monetary Authority of Singapore’s new macroeconometric model of the Singapore economy, the Monetary Model of Singapore (MMS) on 2 February 2000. *  *  *  Introduction It is my pleasure to be here today. This conference provides an excellent opportunity for networking and the exchange of ideas between policymakers, private sector economists as well as academics. Last July, at the Far Eastern Meeting of the Econometric Society in Singapore, I mentioned that the Economics Department of MAS was working on a new macroeconometric model of the Singapore economy, the Monetary Model of Singapore. This model incorporates the latest techniques and thinking in modelling. I am glad that the development work is completed and the model is now ready to be used for policy work. The staff of the Economics Department will be presenting the details of the model later this morning for review and discussion. Post-Asian crisis: a time for reflection The economic outlook for Asia has turned positive. Memories of the Asian financial crisis and of the economic recession that followed have already started to fade. The crisis Asian economies are recovering - we see production, exports and consumption growth rebounding, some even surpassing pre-crisis levels.