the adb expects this momentum to continue in 2004. 1 capital has started to flow back into the region and stock markets have rebounded. net capital inflows into emerging market portfolio equity investment reached a high of us $ 30bn in 2003, almost double that seen before the internet bust in early 2000. 2 this positive economic outlook, coupled with growing intra - regional trade and investment, augurs well for the region. trade and investment links should however, be complemented by greater financial market cooperation and integration. the governments ’ resolve to forge deeper collaboration will give an added boost to the region ’ s progress. the exchanges should however, also contemplate possible collaborative initiatives to create new value. notwithstanding the competitive forces, regional exchanges have much to gain by working together. this is not a zero - sum game. it is in the region ’ s interest that we should cooperate to increase our collective strength. i hope you, as key decision makers of your exchanges, will take this opportunity to consider possible ways of working together. eaosef is well placed to facilitate this process. i wish you a fruitful discussion at this forum. asia economic monitor, asian development bank, december 2003. the asia / pacific region accounted for 90 % of total flows into emerging markets. reference : capital flows to emerging market economies, the institute of international finance, inc., 15 jan 2004.

lim hng kiang : dynamism, confidence, collaboration - regional exchanges in the new financial landscape keynote address by mr lim hng kiang, minister, prime minister ’ s office, second minster for finance and deputy chairman of the monetary authority of singapore, at 23rd east asian and oceanian stock exchanges federation ( eaosef ) general assembly, singapore, 15 april 2004. * * * mr jy pillay, chairman, eaosef and chairman, sgx mr toshitsugu shimizu, secretary general, eaosef dr yu - kyung kim, chairman, eaosef working committee distinguished guests, ladies and gentlemen introduction a warm welcome to everyone, especially to many of you who have travelled to join us here in singapore. i understand that the eaosef general assembly was previously hosted by singapore in 1988. today, we meet here again, but amidst a global setting that has changed significantly. the world is quite different today. economies and markets alike, are increasingly intertwined. globalisation of markets and rapid advances in technology have altered the global marketplace. this is especially so in the world of exchanges and clearing houses, where the competitive landscape is changing rapidly worldwide. challenges facing exchanges the late 1990s saw a flurry of mergers, alliances and demutualisation among leading exchanges. they were gearing up for a battle with the alternative trading systems. but the threat from alternative trading systems did not materialise. no established exchange has been supplanted. even in the u. s., which has the highest number of alternative trading systems, none have made significant inroads into the dominance of established exchanges. the wave of consolidation has, however, created mega - exchanges in the u. s. and europe, and competition among them has proceeded at a furious pace. the chicago board of trade ( cbot ) faces a serious challenge on its home turf from eurex, the all - electronic exchange owned by deutsche borse and the swiss stock exchange. eurex is now offering electronic trading in u. s. dollar denominated fixed income futures which have been the mainstay of the cbot. the pan - european exchange, euronext. liffe, is offering electronic trading in eurodollar futures contracts in direct competition with the chicago mercantile exchange ( cme ). cme has responded quickly, announcing initiatives to accelerate the migration of its flagship eurodollar contract to globex, its electronic trading platform. and