It emphasises on a strong linkage to productive economic activity to generate legitimate income. It also emphasises on accountability, fairness and transparency. All these reflect the fundamental values propagated in Islamic finance that could serve as a stable and resilient form of financial intermediation. When Islamic finance is applied in an appropriate and structured manner, it has a strong prospect to serve as a contributor to a sustainable global economic growth and financial stability. The infrastructure already established in Islamic finance today is ready to serve as an effective intermediary for the conduct of global business including promoting greater intraregional trade not only within Asia but between the various regions of emerging markets. With more than 600 Islamic financial institutions that now operate in more than 75 countries, growing at an annual rate of about 15 per cent, Islamic finance can be a platform to strengthen economic ties between East and West Asia in trade and investments flows. The sukuk market in particular, has evolved as an important avenue for international fund raising and investment activities, generating significant cross-border flows. Sukuk issuances have grown in diversity and sophistication. The diverse sukuk structures of Ijarah, Istisna, Murabahah, Musyarakah and Mudharabah have expanded to form hybrid sukuk which include exchangeable and subordinated sukuks, thus increasing its usability and compatibility to fund various forms of financing. For example, huge amount of funds could be raised, via sukuk, for the purpose of financing large infrastructure projects.

Demand for office and retail space is strong. The high hotel occupancy rates have spurred new interest in hotel developments. In private housing, annual take-up of uncompleted residential units has surpassed the previous high in 1994. The Government land sales programme will continue to provide new development opportunities in Singapore. Already, we have seen strong market interest supporting the development of the Marina Bay and Orchard Road areas. With the positive outlook for Singapore and the government’s strategic plans for development of key industries, investments in real estate from foreign investors have substantially increased. Investors in Singapore real estate now come from many countries, namely the U.S., Hong Kong, Australia, Germany, Japan, the Middle East and Indonesia. Singapore as a gateway to property finance Investment opportunities in Asia, including Singapore, have not gone unnoticed by global investors. Property and property-related assets are also gaining popularity with investors seeking high-yielding and predictable returns with exposure to capital gains. Attracted by the region’s rapid economic growth and positive outlook on Asia, global investment funds are increasing their allocation to Asia, specifically in Asian real estate. Singapore can play an important role as a gateway for global investors to access Asian opportunities via our capital markets. As a leading home for global fund managers, total assets under management in Singapore exceed $ billion with over 50% of these funds invested into Asia Pacific. The Singapore Exchange is an established listing venue for regional property companies based in Singapore as well as foreign property developers.