They meet the needs of different user groups, with SOR used in pricing of bonds and loans to large institutions with hedging requirements, as SOR is also the reference benchmark in SGD derivatives, while SIBOR is mainly referenced in banking products for smaller corporates and retail customers. Changes underway in the SGD interest rate benchmark landscape will therefore, impact all financial market participants in Singapore – in your capacities as lenders, borrowers, investors, and savers. A Setting the Global Context 4 Central banks and regulatory authorities globally have been undertaking significant  and sustained efforts on interest rate benchmark reform for a number of years now. At the global level, the Financial Stability Board (FSB) has identified interest rate benchmark transition as a key priority. Derivatives market participants are encouraged to shift away from interbank offered rates (or IBORs) to near risk-free rates (RFRs). Term unsecured interbank markets that used to underpin IBORs, are no longer sufficiently active, as banks’ funding strategies have fundamentally evolved since the Global Financial Crisis. In response, several major jurisdictions have developed overnight interest rate benchmarks in their respective currency areas, that are underpinned by deep and active underlying markets. These include the SOFR, SONIA, ESTER, SARON and TONA.3  1/7  BIS central bankers' speeches  Transition progress and momentum have not slowed despite COVID-19 disruptions. In the UK, while some interim transition milestones were delayed, the overall end-2021 timeline for LIBOR’s discontinuation remains unchanged.

Regional economic corridors established has also expanded and transformed the Malaysian investment landscape to be more geographically diverse and extending the development throughout Malaysia. The emergence of new growth areas in Malaysia such as renewable energy (e.g. solar) and semiconductors in fast-growing segments such as automotive, medical devices and telecommunications, has enabled Malaysia to be plugged into the global supply chain. Investment in the manufacturing sector has moved towards higher value-added activities, shifting from basic production and assembly to producing goods which have advance applications such as in the automotive and healthcare sectors. As a country which is strategically located within close radius of two of the most populous economies in the world, China and India, Malaysia is centrally located in Asia, more broadly, and in ASEAN, in particular. With the conception of the ASEAN Economic Community (AEC), companies would benefit from the stronger economic inter linkages through greater cross  BIS central bankers’ speeches  3  border liberalisation and increased intra-ASEAN trade. Firms in this region will gain greater market access to 630 million people that are generating economic region that is worth USD2.4 trillion. The increasing importance of Asia in the global economy has raised international interest to better understand Asia – the economies, businesses and the people that comprise the region. On that note, I would like to mention that Bank Negara Malaysia has entered into a collaboration agreement with the Massachusetts Institute of Technology Sloan School of Management (MIT Sloan) to establish the Asia School of Business (ASB) in Kuala Lumpur.