Globalisation and monetary policy autonomy In recent years, there has also been discussion of whether the globalisation of the world’s financial markets has led to a situation in which the actions of large central banks, such as the Fed and ECB, restrict the smaller central banks’ possibilities for taking action. Thus, the latter should also, in this way, have seen their scope for action decrease and their monetary policy autonomy be curtailed. In brief, the background is that the ongoing integration of global financial markets means that large volumes of capital can be quickly moved to where the return is expected to be relatively higher. One of the driving forces behind these capital flows is assumed to be the policy conducted in large, leading countries. These flows can make it difficult to conduct monetary policy in other, smaller countries and may have consequences for the macroeconomic and financial stability there. Trilemma or dilemma? To be rather more concrete, let me proceed from what is known, in international macroeconomics, as the “trilemma” (see Figure 2). The idea is that countries are assumed to strive for three circumstances that are usually all desirable: free movement of capital, monetary policy autonomy and a stable exchange rate. The problem is that all three cannot be attained simultaneously. If you want to conduct a monetary policy of your own and, at the same time, have a stable exchange rate, the movement of capital must be regulated.

Global investors’ allocations to the region have been rising, alongside Asia’s increasing weight in global indices. The region has become a favourite hunting ground for investors, in search of the next unicorns. Households and institutions in the region have themselves become ample sources of wealth looking for investment opportunities. These pools of capital can be mobilised through our capital markets, to finance the region’s high-growth enterprises. Asia has an abundance of channels through which companies and capital can meet. There are established bourses as well as newer, tech-focused exchanges. There is also a growing number of blockchain-enabled platforms. Example: DBS Bank has launched the DBS Digital Exchange for the tokenisation, trading and custody of digital assets. Singapore’s Value Proposition Singapore is well poised to become one of the leading fund-raising centres in Asia. There are four key dimensions to Singapore’s value proposition: a vibrant ecosystem for private equity and venture capital; the premier Asian hub for solutions in investment risk management; a rapidly growing debt capital market; anda promising equity capital market. First, a vibrant private equity and venture capital ecosystem. The thriving start-up and 1/4  BIS central bankers' speeches  Fintech scene in Singapore and Southeast Asia have drawn active interest from PE/VC players from around the world. PE/VC assets under management in Singapore have doubled over the last five years. They grew by over 50% last year despite the COVID-19 pandemic and recession, testament to the resilience of the ecosystem. Technology and innovation are making private equity and venture capital investments more accessible.