stars conference ”. several foreign bankers and business executives i met – some had not visited singapore for many years and a few were here for the first time – told me that they were surprised and excited by the “ buzz ” in singapore. it is not just the business buzz of the financial industry, the integrated resorts, the sizzling property market, and so on. it is also the glitz of our nightlife and our arts, culture and restaurant scene. how have we managed this quick and dramatic rebound? first, we have a government which has the capacity to think long term and implement tough policies to resolve problems and transform the economy. the government is not bogged down by disruptive and unproductive domestic political pit fights. our basic economic strategy is right ; our implementation good. we are moving up the value chain to more technology - and knowledge - intensive manufacturing. we are growing our services sector in areas like tourism, healthcare, education, banking and insurance. we are pumping money and talent into r & d. we have enlarged our economic space through ftas ( free trade agreements ) and moved into new areas like the middle east. foreign minister george yeo has just visited libya and yemen, the first singapore minister to do so. at the right time, i will go there too to strengthen our relations. minister mentor is himself engaging russia and kazakhstan to open up business opportunities. and if there are opportunities in north korea, we will go there too. i dare say that our ministers are not just good at forging relations but also enterprising like businessmen. second, we have intelligent, hard - working and adaptable people. they know the world has changed and is constantly changing. they know they must run ahead of the pack in order not to be eaten by the proverbial lion. some singaporeans grumble and complain about the government and its tough policies but basically, they are nagging the government to listen to them more. singaporeans are pragmatic and disciplined. they are prepared to take bitter medicine prescribed by the government. if our people resist change like they do in france and germany, our economy would be sluggish and unemployment high. investors and international analysts have noted the way singapore has reinvented itself. many foreign leaders have also studied singapore to discover the secret of our success. the foreign editor of a german newspaper i met earlier this week said that he was struck by singapore ’ s development. so he could not understand why many singaporeans he had

longer viable due to post - covid changes in consumer preferences. but covid - related legacy debt should not be a reason for firms that are intrinsically viable to go out of business. in a market economy, normally bankruptcy is an important agent for renewal, but it is also a costly one. if applied indiscriminately and 2 / 3 bis central bankers'speeches unnecessarily, it is bad for employment, bad for creditors, and bad for the economy. so under the current circumstances, we should look for more targeted and less costly solutions where possible. that might involve corporate debt restructuring where banks and other private creditors, and also tax authorities agree to provide some relief. this could help stem the build - up of non - performing loans. that is why i welcome the commission ’ s npl action plan. what i like about the plan is that in addition to cushioning the blow for corporates and banks, it supports a european market for bad debt. it is good to see the progress that ’ s being made in several places and it ’ s important to take further steps here. this is a good moment to say something more specific about the banking sector. as insolvencies are expected to rise, banks will see their non - performing loans increase. fortunately, banks have strengthened their buffers in the preceding years and have taken provisions against the incoming covid impact. these now constitute two solid lines of defense. but still banks are bracing for impact. under these circumstances prudential authorities should monitor developments closely. there is a myriad of non - fiscal support measures in place at the moment, that enable the financial sector in continuing to provide credit to the real economy. a careful exit requires that we first get a clear view of what individual measures are in place and what the impact, both individually and in combination, would be if they were lifted. in other words, we should be able to look through the various kind of support measures, and be able to see what is going on below the surface of banks ’ balance sheets. for instance, what is the effect of the ifrs9 transitional arrangement on capital ratios? mapping the impact of non - fiscal support measures will help to design a smart exit path without material cliff effects, and should support authorities to provide clear guidance to financial institutions. only when the recovery is clearly underway is it time to start restoring the buffers in the economy that have been used to absorb the covid shock. this is the