In the treasury market, we have maintained our position as the world’s fourth largest forex trading hub after London, New York and Tokyo. We continue to rank as the second largest over-the-counter (OTC) derivatives hub in Asia after Japan. We will build on these strengths and deepen our markets by developing the structured finance market. The asset securitisation market has already taken off, with structured products accounting for more than half of the Singapore dollar debt market. This will be further boosted when Singapore’s first loan securitisation programme for Small and Medium Enterprises is launched. ASEAN will continue to be an important market. We should build closer ties with some of the fast emerging ASEAN economies. For example, we have made a proposal to Vietnam to connect our two economies, including our financial markets, so as to reap the benefits of synergy. Vietnam is receptive. We are approaching this at a pace which Vietnam is comfortable with. Besides ASEAN, we should also position ourselves to play a bigger role in other growing regions. I am pleased to note that our local players have embraced globalisation to capitalise on opportunities in the region and beyond. In response to increased competition, our local banks have consolidated and expanded abroad. They remain profitable, sound and well-capitalised, and are becoming regionally competitive. China, India and the Middle East offer rich opportunities for both wealth management and capital markets activities. Singapore can play a useful intermediary role to serve the needs of Chinese companies seeking funding and expansion overseas.

To complement our oversight functions, we are putting in place basic safety nets for depositors and policy holders, as well as working towards the further empowerment of consumers. Disclosure requirements are currently in place but the presentation of information is often less than satisfactory. As more complex investment products emerge, this situation will become untenable. We will work towards refining existing disclosure requirements. Consumer education efforts will also be stepped up. Feedback obtained from the national financial literacy survey to be launched early next year will help us to tailor our consumer education programmes. To help consumers resolve disputes with their financial institutions promptly and affordably, we are facilitating the setup of a one-stop Financial Industry Disputes Resolution Centre, or FIDReC. It will  4  BIS Review 72/2004  serve consumers across different sectors and ensure consistency in processes. We have also recently announced that we will publish details of market conduct regulatory actions where it is in the public interest to do so. This will further enhance market discipline. Leveraging and building on our reputation The third priority for MAS is to leverage and build on our reputation. Singapore has acquired an international reputation for its strong macro-economic performance, its robust and vibrant financial system and its high standards of regulation and supervision. This reputation has accorded us some influence in the international financial community. This influence has in turn helped us to expand our economic space by opening doors to strategic partnerships and removing market access barriers.