ASEAN has made a strategic decision to strengthen the organisation politically. It is finalising a Charter that will lay out a bold and visionary future for ASEAN. This will provide an institutional framework for the grouping and transform it into a more effective and efficient rules-based organisation. The Charter will be signed at the Singapore Summit in November. Asia is evolving its architecture for regional cooperation. Today, there are already several overlapping fora and groupings: the ASEAN Regional Forum (ARF) and Shangri-La Dialogue which discuss sensitive security and defence issues, the ASEAN + 3 framework and the recently formed East Asia Summit (EAS). Countries in Asia understand that they must work together to strengthen regional cooperation. These structures complement one another and help to deepen regional integration and build an East Asian community. Building relationships with other regions While the final shape of the regional architecture will not be decided for some time to come, what is clear is that it will be an inclusive and forward-looking one. This was clearly demonstrated in the way participants in the EAS were determined. Instead of going by narrow and outmoded geographical and ethnic notions, the leaders in Asia wisely decided to adopt a forward-looking, inclusive and open definition. Asia will therefore continue to remain open in engaging external players on the understanding that in today’s context, what defines a “region” are ties, connections and interdependency, rather than physical boundaries and ethnicity. The US will continue to play a vital role in Asia’s stability and prosperity.

As an economic hub and financial centre, Singapore is well connected to the major regions. So we are leveraging on our strengths, experience and contacts to build partnerships and create growth opportunities. To enhance our connectivity and enlarge our economic space, we have concluded 11 FTAs, including with the US, India, Japan, South Korea and Australia. We are negotiating 11 more, including with China and the Gulf Cooperation Council (GCC). Many MNCs, investors and businesses are making use of Singapore’s connectivity to reach out to the region and beyond. Financial services are a prime example. Japanese financial institutions have made inroads into the Middle East. Interest has centred on servicing Asian investors – primarily project financing and loan syndication. I encourage you to take a wider perspective – consider making commercial banking, corporate finance, capital-market services and private-banking services part of your long-term growth strategy. There are many opportunities for you to use Singapore to reach out to the Middle East. You could explore possibilities for collaborating with Singapore-based financial institutions with strong know-how. You could also start discussions with the Middle Eastern banks and players present in Singapore. I would also like to encourage you to use Singapore as a regional hub to conduct your investment activities. Let me give you some idea of what we’re building here. Allow me to share with you the results of the 2006 Asset Management Survey. There are three broad trends worth noting. First, total assets under management (AUM) have grown robustly over the last six years.