and white bungalows, mas ’ unique mandate of central bank, integrated supervisor, and promoter of financial sector development, was born partly out of circumstance. for a small country like singapore with limited human capital, the single agency model allows mas to more effectively utilise available expertise and exploit synergies to achieve our objectives for the financial sector and wider economy. bis central bankers ’ speeches and like the blending of british and tropical themes in the bungalows, bringing together central banking, integrated supervision, and developmental functions serves important practical purposes. first, being an integrated supervisor gives us better insights into the full range of activities that a financial institution engages in and hence facilitates more holistic financial supervision. integrated supervision is consistent with the broad range of services that financial institutions provide as well as the blurring of distinctions across financial products that we see today. • banks offer their clients a suite of financial services, including investment and insurance products. • insurance companies offer financial planning solutions that incorporate elements of savings deposits and investments, in addition to protection. there are synergies across prudential regulation and market conduct regulation. market conduct issues provide useful perspectives on the prudential safety and soundness of individual firms. how financial institutions treat their customers speaks a great deal about their corporate values, ethical standards, and quality of risk management and internal controls. second, being a central bank and a financial regulator allows us to harness synergies between macroeconomic analysis and financial stability oversight. during the global financial crisis and subsequent eurozone crisis, macroeconomic shocks, financial market stresses, and institution - specific vulnerabilities interacted in complex ways with consequences for both systemic stability and the safety of individual institutions. the two - way flow of information and sharing of perspectives between the central banking and supervisory arms of mas proved invaluable in helping us assess a rapidly evolving situation and co - ordinate appropriate policy responses in a timely manner. having central banking and financial supervision within one organisation is not the only way to achieve better financial stability outcomes. it makes sense in a small country like singapore. larger jurisdictions have sought the same outcomes through strengthened coordination mechanisms among the various agencies whose work contributes to financial stability. the financial stability oversight council in the us and the financial policy committee in the uk are two good examples. third, being a financial regulator as well as promoter of financial sector development helps ensure that regulation is not only robust but sensitive to the broader needs of the economy. lest there be any doubt, financial stability is

jacqueline loh : enhancing linkages between asia and the middle east welcome address by ms jacqueline loh, deputy managing director of the monetary authority of singapore, at the 6th world islamic banking conference asia summit, singapore, 3 june 2015. * * * your excellencies, distinguished guests, ladies and gentlemen, good morning. to all our foreign guests, a warm welcome to singapore introduction 1. i am very honoured to be invited to deliver the welcome address for the 6th world islamic banking conference asia summit. i am pleased that this conference continues to attract a growing number of industry professionals from asia and the middle east, with total attendance more than doubling since it was launched in 2010. this underscores the bright prospects for islamic finance in asia. growing asia - middle east connectivity 2. trade and investment flows between asia and the middle east have grown substantially over the last decade, supported by strong domestic demand and investment opportunities in both regions. this growing connectivity is expected to strengthen in the coming years, notwithstanding uncertainties in the global outlook. let me share 3 key observations. 3. firstly, trade between the two regions continues to grow strongly. in the past decade, exports from the gulf cooperation council ( gcc ) to asia expanded five - fold, and growth of gcc ’ s exports to asia has surpassed that to the rest of the world. asia ’ s exports to gcc have also increased five times, registering an annual growth rate of 15 % over the past ten years. 4. secondly, inter - regional investments are growing. investments into the gcc are being driven by several positive factors : infrastructure development to cater for its hydrocarbon sector, rapidly - growing populations, market liberalisation and diversification beyond oil and gas. a 2014 industry survey 1 by mergermarkets highlighted that investments from asia into the gcc would soon equal that traditionally sourced from europe, as asian companies become more active in the middle east. the converse is also true. attracted by asia ’ s good growth prospects, gcc investors have increased their investments not just in energy markets, but also in telecommunications, finance, and other industries in asia. for instance, gcc state - owned oil firms have been investing in asean energy sectors, while gcc sovereign wealth funds ( swfs ) are also showing interest in the agriculture sector across asean. 5. thirdly, continued growth of gcc and asian economies, and an expanding network of free trade agreements, will reinforce connectivity between the regions. notwithstanding more volatile and lower