To-date, the CCI has facilitated 239 cross-border financing deals worth over $ billion. In 2022 alone, 27 financing deals worth about $ billion were concluded. The second imperative – green and transition financing – is a new dimension in financial co-operation between China and Singapore as well as ASEAN. Many countries and corporates have made commitments to reach net-zero by 2050. Financing is critical to support these efforts and facilitate the progressive decarbonisation of our economies. McKinsey has estimated that $ trillion a year till 2050 is needed to achieve netzero. One-third of this amount is required in the Asia-Pacific. MAS and the People's Bank of China (PBC) have formed a China-Singapore Green Finance Taskforce. The Taskforce will: facilitate public-private sector exchanges to better mobilise private capital for sustainable development needs; and collaborate on standards, financing solutions, data collection, and technology enablers to enhance green investment opportunities in China and the ASEAN region. The first session of the Taskforce will be held tomorrow in Chongqing. Let me suggest four potential areas of co-operation between Chongqing and Singapore, leveraging on the work of the China-Singapore Green Finance Taskforce. First, we can work together to incubate pilots and test initiatives. 2/3  BIS - Central bankers' speeches  Chongqing has a green financial reform and innovation pilot zone. This could serve as a safe space for green finance initiatives to be piloted. As Taskforce discussions progress, we can work closely with Chongqing to assess suitable green projects for incubation.

The good news is that sustained monetary policy tightening by major central banks has begun to break the momentum of rising inflation. The bad news is that inflation remains elevated. The longer inflation remains elevated, the greater the risk that inflation expectations become unhinged. If inflation expectations rise, monetary policy would have to be tightened even more to restore price stability. It is important that monetary policies remain tight. In Singapore, monetary policy remains tight. The MAS has just announced maintaining its current policy stance following five consecutive rounds of policy tightening. 1/3  BIS - Central bankers' speeches  Maintaining an appreciating path for the nominal effective exchange rate of the Singapore Dollar means that monetary policy will continue to have a dampening effect on inflation. Imported inflation is already negative and core inflation has peaked and is projected to decline over the second half of 2023, towards 2.5% by year-end. But it is too early to declare victory. MAS will remain vigilant to any signs of a resurgence of inflation. Even as we remain vigilant on our current challenges, let us not ignore our longer-term imperatives. I will highlight two such imperatives for China and Singapore: financial market connectivity and co-operation; and green and transition financing. The CCI Financial Summit has been a key platform for financial co-operation between Chongqing and Singapore. Since its inception in 2015, the CCI Financial Summit has connected more than 2000 policymakers and industry leaders from ASEAN and China, to exchange ideas and to explore new areas for cooperation.