in implementing the new regulatory standards. role of industry participants supervision has to work in concert with effective risk governance in the financial institutions. the boards and senior management of financial institutions must take ownership and responsibility to manage risks. a report issued by the senior supervisors group 2 in march 2008, on observations on risk management practices highlighted many risk management practices that improved the resilience of financial institutions during a crisis. let me highlight three areas. first, effective capital planning. banks need to conduct a thorough and comprehensive assessment of their levels of capital. these have to be “ forward - looking ”, taking into account the nature and level of the bank ’ s risk, not only under “ normal ” business conditions, but also the senior supervisors group comprises senior financial supervisors from seven countries ( united states, canada, france, germany, japan, switzerland, united kingdom ). it is chaired by william l. rutledge from the federal reserve bank of new york. under conditions of stress. the level of capital has an important “ signalling ” effect in a crisis. hence, banks need to develop funding strategies and contingency plans, ahead of crisis, to ensure there is adequate capital to maintain market confidence. a second related area is stress testing. globally, the financial industry has acknowledged that stress testing practices were insufficiently comprehensive or rigorous. robust stress testing helps the financial institution to identify the impact of adverse events and shocks, outside of the normal environment. however, let me caution that the techniques for integrated firm - wide stress testing remain in the early stages of development and need to be further refined. tipping points, correlations between risks, feedback loops, behaviours and interactions of market participants are difficult to anticipate and quantify. new approaches to stress tests are being considered, such as reverse stress testing, which requires a financial institution to identify scenarios of which the impact could threaten its survival. if done well, such an approach can help question assumptions, and uncover hidden risks and interlinkages between risk factors. capital planning and stress testing rely heavily on quantitative techniques to measure risks. the crisis shows the limitations of value - at - risk ( var ) models and other quantitative techniques. going forward, financial practitioners will have to be more critical of the assumptions behind the models, and be more prepared to apply sound judgment and reality checks. mas will, as part of its supervisory review process, continue to engage the banks on their capital planning processes, and to evaluate whether the framework is sufficiently robust and comprehensive. the

equity raised through ipos globally in 2017 were in the asia pacific. • investors now have a wide array of asian assets to choose from. as asian companies gain market share globally, investing in asian companies has become more attractive. • asia ’ s share of companies with market value of more than us $ 10 billion stands at 30 %, compared to 20 % just ten years ago. investors in asia are also looking to private markets for investment opportunities. • asian companies are choosing to stay private for longer and becoming more receptive to venture capital ( vc ) and private equity ( pe ) financing. • asia is already a major destination for vc and pe investments. • last year, vc and pe investments into asia reached us $ 160 billion, accounting for 30 % of global investments, surpassing europe for the first time. • with close to 7, 000 start - ups in southeast asia alone, there are opportunities abound for private investments in the region. http : / / www. imas. gov. sg / news - and - publications / speeches - and - monetary - policy - statem... 21 - 07 - 18 connecting global markets supporting asias growth page 3 of 7 the demand for infrastructure financing in asia is outpacing countries ’ funding capacity. • according to the adb, asia will need around us $ 1. 7 trillion annually in infrastructure financing between now and 2030 to sustain economic growth. • currently, more than 90 % of infrastructure investment is financed by governments. • this is not sustainable if the demand for infrastructure is to be met. the challenge for governments in asia is this : to make infrastructure more attractive to private capital. • at their recent meeting in singapore, asean finance ministers agreed to accelerate infrastructure development through mobilising private capital. this means mainstream infrastructure financing as an asset class. • the prospects are good. there is a strong pipeline of projects in the transport and energy sectors, diversified across the asean countries. • we have seen some early success. • for instance, the debut of project bond issuance by pt paiton, indonesia ’ s second - largest independent power producer, reflects growing demand for asian infrastructure debt. singapore is well positioned as a gateway to investment opportunities in asia. • we offer a world class financial centre, with a sound regulatory framework and business - friendly environment. • with its pan - asian reach, singapore is an ideal location for investors to set up base and tap on opportunities in the region. let me highlight two things singapore