shifting from a rule - based to a risk - based approach requires mas to sharpen its supervisory capabilities. it involves assessing key risks faced by individual financial institutions and their ability to manage these risks. we are building more comprehensive risk profiles of individual institutions, leveraging on technology and better information collection. primary responsibility for risk management rests with the board and senior management of the institutions themselves. this is why strengthening corporate governance standards in financial institutions has been a key priority at mas for several years. building on earlier initiatives, we have issued a consultation paper, proposing to set higher standards of financial transparency and corporate governance for locally - incorporated banks and direct insurers. we have proposed making it mandatory for the roles of the chairman and ceo to be separated, and strengthening the independence of boards of directors from substantial shareholders. we have received good feedback on these proposals and will issue a final set of guidelines shortly. a less prescriptive regulatory approach requires that consumers be empowered through enhanced disclosure and education to make better - informed decisions themselves. this is particularly relevant in the current context of financial innovation which has spawned a growing array of retail products and services with enhanced distribution networks. mas will work closely with industry associations and other public sector agencies to develop consumer guides and educational programmes to raise the financial literacy of consumers. we have also facilitated the development of industry - based mechanisms to offer consumers faster and more cost - effective ways to settle disputes with banks and insurers. the banking industry has set up a consumer mediation unit and the insurance industry the insurance disputes resolution organisation. enhancing organisational effectiveness the year was also eventful for mas as an organisation, as we continued to build on our structure, systems, and people to better meet the challenges posed by a changing and uncertain external environment. we restructured the organisation to better integrate our supervisory functions, align resources with our objectives, and build technical and managerial depth. we stepped up efforts to enhance the skills and expertise of our staff, sending more of our staff on external attachments to financial institutions and supranational organisations, and putting in place a more systematic approach in functional training. the integration with the previous board of commissioners of currency, singapore ( bccs ) was carried out successfully following the merger on 1 october 2002. annual accounts a few quick words on mas ’ financial statements. the authority ’ s total assets grew 18. 6 per cent during the year ended 31 march 2003 to s $ 153. 9 billion. about 11 per cent or s $ 16 billion is

the trap of data - mined quantitative strategies that rely on factors that may not be robust through time. conclusion in singapore, reserve management is a multi - objective, multi - agency, and most importantly, a multi - generational effort. the reserves serve as a buffer against bad times, as an endowment to finance current needs, and as a foundation for macroeconomic stability. as custodians of the national reserves, mas, gic, and temasek owe a duty of care and responsibility to the ultimate beneficiaries of the reserves - current and future generations of singaporeans. it is a duty that motivates our investment and risk managers as they go about their work 6 / 7 bis central bankers'speeches each day, trying to extract value while staying clear of pitfalls, amidst the turbulence, tides and ebbs of financial markets. thank you. 7 / 7 bis central bankers'speeches