Under this, we are changing the education system to lighten the curriculum, encourage creativity, risk-taking and a spirit of life-long learning among our young. Second, we are setting up a $ billion venture fund to coinvest with the private sector in startups, whether by local entrepreneurs or foreign talent attracted to Singapore. Third, we are improving the physical infrastructure for start-ups, such as technology park facilities. And finally, we are reviewing existing laws and regulations, for example those governing taxation of stock options. A fourth area of change is the liberalisation of the financial sector. Our goal is to make Singapore a leading financial centre in our time zone, linked to other major financial centres of the world. Over the last two years, we have progressively shifted our philosophy on financial regulation to a lighter, more market oriented approach. We have given fund management companies greater access to domestic funds, including personal savings in the compulsory pensions scheme, and the government’s reserves hitherto managed by GIC and MAS. We are promoting the debt market, demutualising and merging the stock and futures exchanges, bringing corporate governance up to date, and introducing risk-focussed supervision and inspection of financial institutions. We are also allowing more foreign competition in the domestic banking sector. We have just issued new banking licences to foreign banks. Keener competition will mean better banking services and stronger local banks that can hold their own in a rapidly changing industry. While pursuing major economic priorities, we have not neglected to strengthen our social cohesion.

Mr Lee comments on what Singapore and other Asian countries are doing in post-crisis Asia  Speech by Mr Lee Hsien Loong, Chairman of the Board of Directors of The Monetary Authority of Singapore and Deputy Prime Minister, at the Credit Suisse First Boston Investment seminar, held in Singapore on 26 October 1999. *  *  *  Pre-crisis Asia: a mirage? The Asian crisis swept through the regional economies like a huge tidal wave. The euphoria from more than a decade of boom in East Asian economies was abruptly punctured. Overnight, headlines switched from the “Asian century” to the “Asian disease”. Some analysts questioned if the earlier prosperity had been real, or just a bubble. Others attributed the crisis to fatal flaws in the Asian model, which was masked by a classic asset bubble. Asia would not recover, and investors would not return, until these deep flaws were corrected. This pessimism was exaggerated. The transformation of Asia in the last few decades was no mirage. It had sound fundamental underpinnings. Countries maintained high savings and investment rates. Education levels were rising. Economic policies generally became more liberal, outward oriented, and welcoming to foreign investments. Asia had all the ingredients for the takeoff that we witnessed. True, the crisis was a major setback but, compared to a decade ago, the regional economies are still way ahead in terms of development and already, most of them are beginning to bounce back. Undoubtedly, the economies did have serious problems that contributed to the crisis.