However, China’s rapid growth also presents major domestic challenges. The Chinese leadership understands well the dangers of overheating in the economy and has been applying the brakes to bring about a soft landing. In addition, China has to grapple with capital account liberalisation and financial system reforms. India, too, is rising but along a different path. It is rapidly becoming a powerhouse for “soft” infrastructure businesses such as software development, business process outsourcing and creative industries. India, too, has its own set of challenges, particularly in the areas of fiscal and structural reforms. But the Congress-led coalition Government, under Prime Minister Manmohan Singh, is committed to the path of reform and liberalisation. Japan appears to be shaking off a decade of sluggish growth. Its recovery is due to the effects of many years of structural reform and strong external demand. But not everyone is convinced that this recovery is self-sustaining. BIS Review 72/2004  1  In ASEAN, peaceful elections and leadership transitions have taken place in the Philippines, Malaysia and Indonesia. In Singapore, too, we have a new Prime Minister and several new Ministers. The new leaders in ASEAN will have the opportunity to address economic and security challenges together, hopefully in a bold, creative and pragmatic manner. The rise of China and India presents both opportunities and challenges for ASEAN. To seize the opportunities and meet the challenges, these new leaders must work with their other colleagues to speed up the integration of the ASEAN economies.

To complement our oversight functions, we are putting in place basic safety nets for depositors and policy holders, as well as working towards the further empowerment of consumers. Disclosure requirements are currently in place but the presentation of information is often less than satisfactory. As more complex investment products emerge, this situation will become untenable. We will work towards refining existing disclosure requirements. Consumer education efforts will also be stepped up. Feedback obtained from the national financial literacy survey to be launched early next year will help us to tailor our consumer education programmes. To help consumers resolve disputes with their financial institutions promptly and affordably, we are facilitating the setup of a one-stop Financial Industry Disputes Resolution Centre, or FIDReC. It will  4  BIS Review 72/2004  serve consumers across different sectors and ensure consistency in processes. We have also recently announced that we will publish details of market conduct regulatory actions where it is in the public interest to do so. This will further enhance market discipline. Leveraging and building on our reputation The third priority for MAS is to leverage and build on our reputation. Singapore has acquired an international reputation for its strong macro-economic performance, its robust and vibrant financial system and its high standards of regulation and supervision. This reputation has accorded us some influence in the international financial community. This influence has in turn helped us to expand our economic space by opening doors to strategic partnerships and removing market access barriers.