in the patterns of trade, production and growth in the coming years. the adjustments to these changes will be neither easy nor smooth. as unemployment in some advanced economies mount, the risk of trade and financial protectionism rises. rapid changes in the real economy will generate greater uncertainty, and potentially greater volatility in financial markets. over the next few years, asia is likely to grow more slowly compared to pre - crisis days, when external demand from advanced economies weakens. to sustain growth, asian economies with big domestic markets will need to continue with structural reforms to boost domestic demand. smaller asian economies will have to re - orientate their economies to respond to new opportunities in these markets. the cross - border production and supply - chain networks, which have been so efficient in raising asia ’ s exports to the rest of the world, remains valuable but will have to be increasingly re - orientated towards raising domestic and intraasian consumption of final goods and services. measures to encourage new investments in the corporate sector and in public infrastructure, as well as in education and healthcare, will be necessary for most asian emerging economies in order to realize their growth potential. the basic outline of changes is well understood, but crafting the details of these changes, and calibrating the pace of implementation, will need thoughtful work. the build up of domestic demand would probably be a gradual process, as experiences of japan and germany suggest that reducing a nation ’ s export dependence involves major structural changes that evolve over an extended period of time. nevertheless, i am optimistic that asia will be able to respond to these challenges, to achieve its longer term growth potential and contribute towards more sustainable global growth. financial regulations and development let me now turn to the third set of challenges : financial regulations and development. financial authorities are now working intensely in various fora, such as the financial stability board and basel committee, on regulatory reforms and cross - border cooperation. the major themes relate to new capital and liquidity frameworks and linking these to systemic risks ; dealing with the moral hazard problem of individual institutions becoming “ too big ”, or “ too connected ” to fail ; cross - border coordination and resolution regimes ; redefining accounting rules and building counter - cyclical buffers to address pro - cyclicality ; adherence to global standards and others. in many areas, measures have already been agreed and implemented. many of these changes will be relevant to asia, and we need to abide by global standards. however, following the asian crisis, significant

developments that may help to address some of these challenges. the united nations has convened a high - level advisory board on effective multilateralism which will explore reforms to the global financial architecture to help channel more public and private capital to developing countries. this is timely work. if we are to finance the sustainable infrastructure that the world needs, especially through blended finance, we will need to reform how development finance is implemented and consider adjustments to the mandates and incentive structures of multilateral development banks. the network of central banks and supervisors for greening the financial system is launching an initiative to raise awareness on blended finance including potential regulatory and practical barriers. we can look forward to more details at cop 27 but suffice to say the ngfs will focus on practical guidance from past case studies and demonstrative projects to explore what is possible. the gfanz asia - pacific network will launch an initiative to develop guidance for financial institutions on how they can facilitate the managed phase - out of coal power generation in the asia pacific. mas and the asian development bank will participate in this initiative. there are about 5, 500 operational coal plants in asia, responsible for over 4. 5 gigatonnes of carbon emissions per year. asia's coal plants are far younger than the coal fleets in the us and europe, with the majority having decades left to operate. the gfanz initiative will help to address the challenges involved in responsibly decommissioning these plants, including the fiduciary and reputation risks 3 / 4 bis - central bankers'speeches that financial institutions may face from the initial spike in financed emissions as a result of investing in such early phase - out projects. singapore has been doing its part to complement these global and regional efforts to promote transition and blended finance. infrastructure asia, launched by mas and enterprise singapore, provides technical assistance to enhance project bankability, thereby helping to attract financing. it provides expertise in project scoping, shares best practices in project development, and facilitates infrastructure financing deals in the region. infrastructure asia is facilitating a number of sustainable infrastructure projects, including in waste management and waste - to - energy. clifford capital, whose borrowings are guaranteed by the singapore government, provides debt financing to crowd in equity participation for infrastructure projects. bayfront infrastructure management, established by clifford capital, mobilises institutional capital for project and infrastructure finance through the issuance of infrastructure asset - backed securities. to - date, it has catalysed a total of us $ 330m for