Both countries have also established regular dialogues including the Joint Council of Bilateral Cooperation (JCBC) co-chaired at the Deputy Prime Minister level and the Ministerial level economic and trade councils in seven Chinese Provinces/Municipalities. We want to build on what has been achieved, and explore avenues to deepen our close partnership. Financial cooperation has become an increasingly important pillar of the ChinaSingapore relationship. 9 Singapore has served as a useful platform for Chinese financial institutions to participate in regional markets, especially in ASEAN. To-date, six out of the top 10 Chinese banks already have a presence in Singapore. Two of them – Bank of China and Industrial Commercial Bank of China (ICBC) – were extended Qualifying Full Bank (QFB) privileges as part of the enhanced CSFTA in 2012. These banks are now expanding their Singapore operations as hubs for Southeast Asia. 10 In addition, Singapore financial sector has also served the needs of China’s financial markets. For instance, China is the largest source of offshore reinsurance business in Singapore in 2011. We welcome this presence. 11 At the same time, China has also presented opportunities for Singapore’s financial institutions. Our three local banks already have a presence in 15 provinces in China. Our sovereign wealth funds and private investors based in Singapore are also important investors in China’s financial institutions and markets. 12 There is potential to further these financial interconnections as China gradually widens and deepens its financial markets.

This shift away from a "one-size-fits-all" minimum liquidity requirement would be in line with international best practices for liquidity risk management. The new framework will be announced in the second half of this year. Its implementation will be phased out to minimise potential disruptions to financial markets. As business models and technologies continue to evolve, MAS has kept close touch with market participants and discussed with them the possible risk implications of new activities. We have avoided pre-empting market developments with premature regulation. Regulation has to be responsive but it cannot prejudge how the market will develop and business strategies will crystallise. MAS has issued regulatory guidelines on the provision of financial services through new delivery channels. Examples include the policy statement on capital treatment of internet-only banks; guidelines on technology risk management for all institutions engaging in internet banking; and sound practice guidelines on internet securities trading. The proposed SFA will introduce an authorisation regime to cater to new trading systems, often referred to as Alternative Trading Systems, so as to increase the scope of products available to investors. Developing talent Attracting and developing talent, both Singaporean and foreign, is critical to fostering innovation and a vibrant financial centre. In January this year, MAS announced that a Financial Network for Excellence in Training (f-NExT) would be established to encourage greater collaborative efforts in enhancing workforce capabilities within the financial sector. The Institute of Banking and Finance (IBF) will take on a new role as the central executive arm of f-NExT.