shifting from a rule - based to a risk - based approach requires mas to sharpen its supervisory capabilities. it involves assessing key risks faced by individual financial institutions and their ability to manage these risks. we are building more comprehensive risk profiles of individual institutions, leveraging on technology and better information collection. primary responsibility for risk management rests with the board and senior management of the institutions themselves. this is why strengthening corporate governance standards in financial institutions has been a key priority at mas for several years. building on earlier initiatives, we have issued a consultation paper, proposing to set higher standards of financial transparency and corporate governance for locally - incorporated banks and direct insurers. we have proposed making it mandatory for the roles of the chairman and ceo to be separated, and strengthening the independence of boards of directors from substantial shareholders. we have received good feedback on these proposals and will issue a final set of guidelines shortly. a less prescriptive regulatory approach requires that consumers be empowered through enhanced disclosure and education to make better - informed decisions themselves. this is particularly relevant in the current context of financial innovation which has spawned a growing array of retail products and services with enhanced distribution networks. mas will work closely with industry associations and other public sector agencies to develop consumer guides and educational programmes to raise the financial literacy of consumers. we have also facilitated the development of industry - based mechanisms to offer consumers faster and more cost - effective ways to settle disputes with banks and insurers. the banking industry has set up a consumer mediation unit and the insurance industry the insurance disputes resolution organisation. enhancing organisational effectiveness the year was also eventful for mas as an organisation, as we continued to build on our structure, systems, and people to better meet the challenges posed by a changing and uncertain external environment. we restructured the organisation to better integrate our supervisory functions, align resources with our objectives, and build technical and managerial depth. we stepped up efforts to enhance the skills and expertise of our staff, sending more of our staff on external attachments to financial institutions and supranational organisations, and putting in place a more systematic approach in functional training. the integration with the previous board of commissioners of currency, singapore ( bccs ) was carried out successfully following the merger on 1 october 2002. annual accounts a few quick words on mas ’ financial statements. the authority ’ s total assets grew 18. 6 per cent during the year ended 31 march 2003 to s $ 153. 9 billion. about 11 per cent or s $ 16 billion is

due to the transfer of the currency fund from bccs. all other assets and liabilities of bccs as at 30 september 2002 were similarly transferred to the mas and have been incorporated into our financial statements. the net assets of the currency fund at the end of the financial year provided 112 per cent asset backing for the currency in circulation of s $ 13. 8 billion. mas ’ profit after provisions for the financial year ended 31 march 2003 declined by 2. 8 per cent to s $ 623 million as our investments continued to be affected by the low global interest rate environment and volatile financial markets. conclusion in closing, let me restate mas ’ s priorities going forward. supporting economic growth while maintaining domestic price stability will remain the key focus of monetary policy. in the financial sector, we will continue to partner with industry players to build on our successes in key growth areas like asset management, the debt market, and treasury business, while looking out for new niche areas and opportunities. we will continue to refine our regulatory and supervisory framework as we progressively shift the emphasis from a rule - based regime to a risk - based and disclosure - based approach. this is necessarily work - in - progress, as it will take several years of learning and adaptation by mas, financial institutions, and market participants. but achieving this is an important part of ensuring that singapore remains a resilient, competitive, and dynamic financial centre. thank you very much. my colleagues and i will be pleased to take any questions that you may have.