The sandbox serves two purposes: First, it allows experiments to take place, even where it is not possible at the outset to anticipate every risk or meet every regulatory requirement. Second, it provides an environment where if an experiment fails, it fails safely and cheaply within controlled boundaries, without widespread adverse consequences. How will the sandbox work? MAS and the applicant will jointly define the boundaries within which the experiment will take place. MAS will then determine the specific legal and regulatory requirements which it is prepared to relax for the duration of the experiment within these boundaries. We have received several sandbox applications since June, from FIs and FinTech players. The proposals leverage a range of technologies including distributed ledgers, machine learning, and big data analytics. MAS is reviewing the applications and looks forward to having some of these proposals launched in the sandbox soon. Meanwhile, we will be issuing today our finalised regulatory sandbox guidelines, incorporating feedback from the industry and road-tested against the actual sandbox applications we have received. Strengthening Cyber Security A smart financial centre must be a safe financial centre. As more financial services are delivered over the Internet, there will be growing security and privacy concerns from cyber threats. Users will have confidence in new technologies and innovative services only to the extent they have confidence in cyber security. Strengthening cyber security is therefore an important part of Singapore’s FinTech agenda. MAS works closely with other government agencies and the industry to help ensure cyber-defences are robust.

We adopted prudent fiscal policies, and directed monetary policy to achieve medium-term price stability. Our MNC-led growth strategy has worked well but others are pursuing the same strategy. So for the next phase of our development, we are also building a second platform based on entrepreneurship, innovation and knowledge. New areas of focus include Research and Development, biomedical sciences and the creative industry. As the competition intensifies, we break old moulds of thinking and reinvent the way we do things. For example, we overturned our longstanding policy of disallowing casinos in Singapore. To remake Singapore into a city with buzz, we are developing Integrated Resorts, with convention facilities, world-class entertainment and casinos. And Crazy Horse, the famed Paris cabaret, is performing in strait-laced Singapore. Implementation is key The third critical aspect of growth is implementation. Right policies are no guarantee of success, if the capacity to implement is missing. Good implementation is founded on three key pillars: effective leadership, sound institutions and social cohesion. First, leaders are responsible for devising and implementing pro-growth policies. They must have the unifying vision to foster economic growth, the political will to overcome resistance and implement reforms, and the ability to mobilise people and engender social consensus. Leaders must also have character, compassion, conviction, commitment and persuasive power. Above all, they must enjoy the trust of the people. The second pillar of effective implementation is sound institutions. Effective leadership must be supported by sound institutions like the legislature, judiciary, civil service, central bank and a responsible media.