Likewise savings in the Middle East have been rising over the past decade and are expected to average about 32% of GDP in coming years. (In 2004, the current account surpluses as percentage of GDP for Asia and the Middle East were about 6% and 14% respectively.) With Asian official foreign currency reserves exceeding $ 2 trillion, and Middle East oil revenues topping $ 180 billion in 2004 alone, the management of surplus savings and reserves in both regions will offer large business opportunities. It will also offer scope for sharing of experience between government investment agencies and central banks in both regions. Besides official savings, there is also a growing number of wealthy individuals in the two regions. Asia alone now has an estimated 2.3 million high net worth individuals (HNWI; people with at least $ 1 million in financial assets), not far behind the US with 2.7 million and Europe with 2.6 million. Asian HNWIs control an estimated $ 7.2 trillion in financial assets. The size of this group in Asia is growing at 7% per year, second only to the Middle Eastern HNWI, now 300,000 which is growing at 9% per year. Traditionally, Asian and Middle Eastern investors have looked to the developed, Western markets to meet their investment needs. But increasingly, they are looking to diversifying their assets globally. It is a interesting new story, that is only beginning to unfold in Asian markets. This is not just a post-9/11 story.

In Singapore, the MAS conducts courses in banking supervision and capital markets which we have extended invitations to both our Asian and Middle Eastern counterparts to participate in. We must think of many other platforms and vehicles which could facilitate people-to-people interactions, including those involving think-tanks, universities, training institutes, and private sector financial bodies like the Association of Banks for example. There is also a financial stability dimension to these networks. As cross-border financial transactions increase, effective supervision will require countries to foster greater cooperation with their regulatory counterparts. The Monetary Authority of Singapore, for example, is in discussions to conclude MOUs with the UAE’s Emirates Securities and Commodities Authority and Qatar’s Financial Centre Regulatory Authority to provide for training and supervisory cooperation. I have highlighted earlier that investment agencies in our two regions are now managing sizeable foreign reserves. There is much scope for our investment agencies to touch base with each other, exchange knowledge of global markets, share the latest in reserve management techniques, and help each other navigate in one another’s regional hinterlands where appropriate. We could even co-invest in specific investment opportunities when they arise. Building educational bridges Finally, a few remarks on education, and how we can bring our young people together. We all know how much education matters, for all our societies. It is the bedrock for human development, and the means for whole societies to realise their potential. But there is further significance in education as we address the issue of strengthening ties between Asia and the Middle East.