ravi menon : china at an inflection point – what does it mean for asia? speech by mr ravi menon, managing director of the monetary authority of singapore, at the official monetary and financial institutions forum ( omfif ) city lecture, london, 5 may 2016. * * * mr david marsh, managing director and co - founder of omfif ms foo chi hsia, singapore ’ s high commissioner to the uk distinguished guests, ladies and gentlemen the china syndrome china ’ s size and promise have long enthralled the world. • the dream of penetrating china ’ s market was colourfully captured in the words of a british commentator in the 1840s : “ if we could only persuade every person in china to lengthen his shirt - tail by a foot, we could keep the mills of lancashire working around the clock ” • well, war, revolution, and central planning quickly laid to rest that fantasy. since the closing decades of the last century, the gravity - defying growth and transformation of the chinese economy have once again stirred global imagination. • gdp growth averaged 10 % per annum during 1980 – 2010, ahead of virtually all other economies. china ’ s size, growth, and rapid integration with the rest of the world mean that no evaluation of the global economy can be complete without looking at china. • in 2000, just 5 countries ranked china as their top export market, compared to 53 countries that ranked the us similarly. • in 2014, 43 countries ranked china as their top export market, higher than the comparative figure for the us, at 31. the recent slowdown in the chinese economy and volatility in its financial markets have therefore sparked fears that the chinese economy was headed for a “ hard landing ” and that it would drag down much of asia with it. but much like the dreams of a vast insatiable market two centuries ago, today ’ s fears are understandable but overblown. to many, china ’ s economy seems like what winston churchill described the soviet union half a century ago : “ a riddle wrapped in a mystery inside an enigma ”. china is indeed a complex economy but is not necessarily beyond comprehension. china ’ s economy is at a major inflection point. it is facing three necessary but significant challenges at the same time : • first, the chinese economy is adjusting to a lower rate of growth. managing this moderation without major dislocation is a key priority for china ’ s policymakers. • second, china is addressing

ravi menon : fintech – harnessing its power, managing its risks panel remarks by mr ravi menon, managing director of the monetary authority of singapore, at the singapore forum, singapore, 2 april 2016. * * * fintech is fundamentally transforming the financial industry. • the smartphone is becoming our bank. • computer programmes are offering investment advice. • people can now lend directly to one another online. technology will replace many jobs in finance but will also create exciting new jobs. • calls for new and different skill sets – understanding technology and the ability to work with and harness the power of machines and algorithms • as someone in silicon valley put it, “ the geek shall inherit the earth ”. unregulated fintech companies are now providing many financial services. they will challenge traditional financial institutions ( fis ), disrupt and even displace some of them but will not replace them. • banks and insurance companies have something that unregulated entities do not have – trust. trust based on a track record of performance. • fis are not sitting still. – they are actively harnessing technology to enhance product offerings and improve efficiency. – they are setting up in - house fintech units to replicate the start - up mentality. many global banks have set up “ innovation labs ” in s ’ pore : citibank, stanchart, ubs, hsbc, to name a few. and insurance companies too : aviva, aon, axa, metlife. – they are also collaborating with or buying over fintech companies to tap their technologies. financial technology, or fintech, may well be the best hope for the future of finance. • the financial industry is facing many headwinds – • slower economic growth, narrower margins, tighter regulation, and greater competition from outside. fintech can potentially help the financial industry regain its dynamism and at the same time purposefully serve the economy and the people. but the fintech phenomenon is not without risk. • the rapid pace of innovation and adoption throw up many questions for the industry and financial regulators. • what should be the policy approach? will speak from the perspective of mas. first – take a differentiated approach to different technologies and their applications. fintech encompasses a wide range of technologies : we cannot take a “ one - size - fits - all ” approach. the nature of technologies, their benefits, and risks are very different. bis central bankers ’ speeches • digital payments, digital currencies –