As a result, markets should work better to reward prudent and profitable performance, and appropriately penalise risky and poor performance. This is positive both for financial stability and the efficient allocation of economic resources. Improving alignment between business units and financial management Bank Negara Malaysia also expects IFRS 17 to be a key catalyst for insurers to review, if not overhaul, business processes across the organisation. This will be driven by at least three factors. First, the need for business units to capture broader and more granular information required for financial reporting. Second, changes in the way performance is measured under the new standard. And third, increased opportunities for institutions to differentiate themselves from the competition, helped by a more integrated view of performance. These considerations will have wide implications for insurers’ organisation structures, data capture, infrastructure and systems, 2/5  BIS central bankers' speeches  risk management, and product design and development. At present, many insurers are operating on multiple, fragmented legacy systems – including largely separate systems supporting the finance, investment and actuarial functions. Systems for regulatory reporting and compliance are also often separate in a number of institutions. As insurers begin to prepare for the reporting of insurance liabilities under the new regime, IFRS 17 will create both a need and the opportunity for insurers to strategically re-think information flows across the organisation – not only to improve efficiencies in financial reporting and mitigate operational risks, but also to capture synergies that will improve business and compliance outcomes.

Goh Chok Tong: Building a brighter future for Asia together Keynote address by Mr Goh Chok Tong, Senior Minister of the Republic of Singapore and Chairman of the Monetary Authority of Singapore, at the Nomura Asia Equity Forum 2007, Singapore, 4 July 2007. *  *  *  Welcome to Singapore. I thank Nomura for holding its fourth Asia Equity Forum here, and for bringing together this diverse group of companies, financial institutions and investors. I hope that this forum will serve as a platform for forging new business relationships and conceiving new growth opportunities. Last week, the World Economic Forum on East Asia hosted more than 300 leaders from business, politics, government, civil society and media in Singapore. The mood was upbeat. The overall feeling was that 10 years after the Financial Crisis, Asia has emerged stronger and its growth built on firmer foundations. The belief was that despite some challenges ahead, Asia would continue to rise. As leaders of governments and companies, we have to anticipate the future. I am not suggesting that we do this with a crystal ball but we should have a mental road-map of the terrain ahead. This will help us position ourselves to seize the opportunities, manage the risks and devise strategies for growth. This morning, I would like to share with you how I see Asia’s regional architecture evolving, and how we are building a brighter future. I will take a medium term timeframe as I believe this is more relevant to business planning.