projects based on needs in the region, grow them to a bankable stage, and match these projects with private investors. 17. these efforts will help make infrastructure financing more accessible to a broader group of investors, and help banks to recycle their capital more quickly to other greenfield projects. transactions can be structured such that institutional investors can, through capital market instruments such as infrastructure projects bonds or securitisation, take over the financing of projects from banks after the construction phase is completed. by facilitating financing to what industry estimates to be usd 300 billion of marginal bankable projects in asia, these integration efforts will enhance long term growth prospects of asian economies. 18. one less - talked about area where market integration holds great promise is in insurance. although natural catastrophes – and damage caused by them – have risen in asia in the last ten years, we remain significantly underinsured against perils like flooding. as disaster risk exposures grow in scale, size and complexity, it would exceed the individual capacity of local insurance markets, and governments, to insure the risks of its populations and communities. ppps between public and private sectors, and across national borders, can be effective in maximising the benefits of insurance. such examples of horizontal integration between markets are key in managing the region ’ s rising exposures to natural catastrophe risks. 19. collation of natural catastrophe risk data and analytics across asean countries is a necessary first step toward more comprehensive catastrophe protection, paving the way for insurance integration in this region. currently, the fragmented market structure in asean constrains data sharing and the capacity of domestic insurers to pool and underwrite risks. in singapore, key partners from academia and industry, alongside the mas, have come together to form a work group to explore the establishment of a natural catastrophe data analytics exchange. this exchange serves as a regional platform to collect data and model bis central bankers ’ speeches less understood regions at risk in asia - pacific, facilitate better pricing of such risks, and eventually pave the way for more comprehensive insurance against these risks. 20. in combination, these comprehensive efforts among jurisdictions and participants are very encouraging. and if they are completed successfully and demonstrate meaningful benefits for the countries involved, they can be replicated very quickly to other interested jurisdictions. singapore is helping to drive many of these market integration initiatives through our participation in asean / asean + 3, apec and g20, but also bilaterally with our economic partners. 21. vertical integration through the value chain can

jacqueline loh : integrating asia ’ s capital markets keynote address by ms jacqueline loh, deputy managing director of the monetary authority of singapore, at the asifma ( asia securities industry and financial markets ) annual conference 2014 “ developing asia ’ s capital market ”, singapore, 5 november 2014. * * * mark austen – ceo, asifma ashley alder – ceo, hong kong securities and futures commission and my fellow keynote speaker fellow regulators and central bankers distinguished guests ladies and gentlemen 1. it is my pleasure to join you this afternoon at the asifma annual conference held in singapore. 2. we have a very ambitious agenda ahead of us. the title of the conference, “ developing asia ’ s capital markets ”, certainly does not do full justice to the breadth of topics covered in the breakout sessions and roundtable discussions over these two days. these topics are very wide ranging indeed, from traditional equity and debt markets, to foreign exchange, investment banking, fund management, financing of asia ’ s infrastructure needs, market infrastructures ; as well as specific geographic markets china and india. each segment not only aims to address opportunities and challenges in each market or asset class, but also opportunities and challenges across markets and asset classes. 3. accordingly, i will focus my remarks on integrating asia ’ s capital markets as a natural pairing to the conference theme on developing asia ’ s capital markets. i. economic dynamism and wealth creation in asia 4. asia remains the fastest growing and most dynamic region in the world today and is likely to remain so in the foreseeable future. according to projections by the conference board, china ’ s growth in the next ten years will average close to 5 % per annum, with india at about 4. 2 % and the rest of asia at 4. 5 %. 1 these projected growth rates for asia are well above the 3. 8 % for emerging economies as a whole, and the 1. 7 % expected for the advanced economies over the same period. looking further into the future, the asian development bank has projected that the sum of the gdp of china, india and asean in purchasing power parity terms could quadruple by 2030 and even exceed that of the us and europe combined. 2 5. asia ’ s already large middle class, will continue to register strong growth. in asean for instance, the middle class is projected to rise to two - thirds of the population by 2030, from less than a quarter in 2010. 3 the rapid