At the same time, notwithstanding rate hikes in the US, mortgage rates in Singapore remain very low. The risk of a renewed unsustainable surge in property prices is not trivial. Second, investors continue to search for yield and safety in property markets across the world. Regional property markets have been buoyant and their respective authorities have, in the past six months, introduced further property cooling measures. For instance: - China, Hong Kong, South Korea, and New Zealand have tightened prudential requirements such as housing loan-to-value ratios and debt servicing ratios. - In Australia, New South Wales will be doubling the stamp duty surcharges for foreign investors. We must be vigilant that tightening measures elsewhere do not lead to spill-over of investor demand into the Singapore market. Easing the measures now would send a wrong signal. The calibrated adjustments by the government earlier this year do not signal the start of 4 / 10  BIS central bankers' speeches  an unwinding of the property cooling measures, as some commentators have suggested. MOF, MND, and MAS stated this very clearly in their joint announcement in March and this remains the position. The statement also said that the current Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits would be retained. MAS has, on a few occasions, emphasised that the TDSR is a structural measure to ensure financial prudence and not a cyclical tool to be adjusted periodically. The adjustments in March were made for very specific reasons and purposes.

The significant dimensions of this change include the increased pace of globalisation, the emergence of new technologies and the increasing importance of knowledge as a defining factor in a country's performance. In particular, knowledge accumulation and its application lies at the core of a country's competitive advantage in the global economy. The traditional comparative advantage of abundant natural resources and low-cost labour are now becoming less relevant. It is for this reason that Malaysia has directed significant resources and attention to human capital development, and in particular, to strengthen the intellectual capacity of our nation. As Malaysia transitions into the next stage of development, the vital factor will be having the right skills, knowledge and expertise. If we are to make the quantum leap forward to become a high performance economy, we need to invest in our capabilities. This will become increasingly important as Malaysia ventures into new, cutting edge industries and develops new areas of comparative advantage in this more competitive world economy. To compete effectively in the more challenging global market place that we face today, it will require significant investment in human capital. This is to enable the workforce to deliver superior high value-added products and services and adopt advanced business practices so as to ultimately realise the strategic goals. This trend has become important for all sectors in the economy. Within the financial sector, for example, significant structural enhancements have been made to enable financial institutions and markets to respond to the rapidly changing demands.