Thus, the focus on building resilience, creating building blocks to address financial instability, boosting national competitiveness, strengthening human capital, inculcating sustainable consumption and increasing productivity, will be paramount in shaping our success ahead. With all these in mind, I will put forward three points in my remarks today, relating to the business models, performance and regulatory framework for DFIs. 1/5  BIS central bankers' speeches  Key Message 1 – Re-engineer business models of DFIs First and foremost, for DFIs to contribute effectively to the development priorities of the nation, it is important for each DFI to ensure their long term financial sustainability. Without this foundation of continued financial health and strength, DFIs will not be able to contribute meaningfully as there will be constraints and limitations in executing their objectives. As policymakers, Bank Negara Malaysia envisions an environment where DFIs are financially independent from the Government with enduring business models that can continue to deliver positive benefits to the economy and broader society. Over the long-term, DFIs should not be dependent on fiscal support to deliver their mandates and hence, will need to diversify their sources of funding to be sustainable in the long run. What we should seek is not short-term fixes but enduring business models that will deliver positive impacts to the economy and society as the economic landscape changes. At the same time, business models for DFIs should be firmly grounded on strong governance and a culture of professional management.

Singaporeans today are more educated, better informed, and keen to take part in the national debate. The government is adapting its style and approach to fit these aspirations of a new generation of citizens. Our strategic challenges have not fundamentally changed. We still have to make a living for ourselves, ensure the security of our homes and families, and build a better future for our children in an uncertain world. But the way Singaporeans mobilise themselves to respond creatively to these challenges has changed. The government will still play an active role, defining the issues, setting the agenda, and influencing opinions. But we also actively solicit opinions and proposals from outside the government. We are involving people much more in discussing and tackling national and community issues, whether it is managing their housing estates or reforming the financial industry. This will help strengthen Singaporeans’ sense of ownership and commitment to Singapore. Conclusion I have focussed on what Singapore and the other Asian countries are doing to get themselves back on track. But the region’s prospects also depend on the strategic backdrop – the relations among the major powers, namely the US, China and Japan, and particularly the role of the US. We have reasons to hope that US-China relations will remain stable. The US will not want a new version of the Cold War against China. And China’s over-riding priority for some decades to come will be to modernise and develop its economy and society, for which it needs peace and the cooperation of other countries.