as a leading international financial centre. 43. singapore is also prepared to break old moulds and be flexible and practical in a changing world. for instance, we overturned our longstanding policy of disallowing casino gambling. to remake itself into a city with buzz, singapore is developing integrated resorts, with casinos, convention facilities and world - class entertainment. japan - singapore partnership for the future 44. i see great potential in closer collaboration between singapore and japan. the landmark japansingapore economic agreement for a new age partnership ( jsepa ) provides an excellent framework. japanese companies can use singapore as a hub with radiating spokes to tap global opportunities. from singapore, companies can service a combined population of 3 billion. that is why 7, 000 mncs choose to hub in singapore. of these, 4, 000 manage global and regional responsibilities. recognising this strategic value - add, many japanese companies have further expanded their operations in singapore. 45. japanese companies can also take advantage of singapore as a hub for knowledge and market intelligence. over the years, we have developed a network of institutions that have a deep reservoir of knowledge on china, india and southeast asia. our businessmen are also familiar with these countries. we are now building up links with the middle east. 46. japanese companies based in singapore can enjoy not only benefits from the jsepa, but also 10 other ftas that singapore has concluded with major economies like the us, south korea and australia. i would like to highlight the comprehensive economic cooperation agreement ( ceca ) between singapore and india as it is the first comprehensive fta that india has signed with any country. conclusion 47. the rise of china and india will shift the global economic centre of gravity from west to east. remaking our economies cannot be an occasional exercise. governments must respond boldly and continuously to the imperatives of our changing times. likewise for companies. this is the only way to ride the rising asian tide. 48. thank you. i will be happy to take your questions.

no escape! there was no private enterprise either. 8. my next visit was in 1975. deng xiaoping and the gang of four were locked in a fierce ideological struggle. deng was branded a'capitalist roader '. while on a field trip, i asked a worker where he had learned his technical skills. he pointed to the pocket of his mao jacket and said, " the little red book ". admission to university depended not on academic performance but how'red'a person's political thinking was. so too the job a person was assigned. 9. over the years, i have returned to china many times and witnessed its remarkable transformation first - hand. how china has changed! revolutionary songs in public have given way to pop songs in karaoke lounges. mao jackets have been discarded in favour of gucci, armani and other luxury brands. i am told that many chinese go to hong kong to buy branded goods, while many hong kongers cross over to shenzhen to buy cheap imitations. china is today the third biggest luxury goods market worldwide. 10. the physical transformation of china is remarkable enough but the mindset change is even more impressive. when deng xiaoping pronounced that the colour of the cat is not important so long as it catches mice, pragmatism supplanted ideological purity. today, there are more capitalists in china than in japan. according to a recent xinhua article ( 13th october 2005 ) entitled " china's rich get gloriously richer ", the total wealth of china's 400 richest people grew by 40 percent in 2004 and amounted to 7 percent of gdp. the chinese have made a strategic choice to pursue what they call'socialism with chinese characteristics '. but to me, it is capitalism with chinese characteristics. china has also embraced globalisation and with its admission to the world trade organisation in 2001, china will have to play by international trade rules. there is no turning back. as china grows, it has a vested interest to strengthen the international system that has enabled its success. 11. i believe china should be able to sustain 8 percent annual growth over the next 20 years. china is drawing in investments, capital, technology, foreign management expertise and talent. it is investing heavily in education and human capital. much of its growth is also internally generated and increasingly consumer - led. 12. china is forcing the pace of change throughout asia. this is for the better. the chinese dragon will usher in a new prosperous asian