Istana Press Release

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The Right Honourable Sir Richard Nichols, Lord Mayor of London, Your Excellencies, My Lords, Aldermen, Sheriffs, Ladies and Gentlemen,

My wife and I are pleased to be here today, at Mansion House, the symbolic heart of the City of London.

The historical relationship between Singapore and Britain has been buttressed by close cooperation in many areas. There is a regular exchange of visits at the level of Ministers as well as officials. Our economic ties are strong and growing. In the past decade, bilateral trade has grown from �1.4bn to �4.2bn. British companies continue to be a key source of foreign investment in Singapore, and Singapore companies also have substantial investments in Britain, particularly in the hotel and property sectors.

The current Asian financial crisis has set economic development in many Asian countries back a number of years. Although Singapore is in a relatively strong economic position, it has not been left unscathed. The Singapore Government has introduced various measures, including wage restraint to help businesses through this crisis.

Despite the current economic problems, Singapore is looking to the long term and examining ways to improve our competitiveness. We are reviewing Singapore�s financial policies to sustain our competitive position as a leading financial centre in Asia. Serious consideration is being given to moving from a system of tight rules to a more risk-focussed supervisory approach and greater bank disclosure, in line with international practice and standards. We aim to be more receptive to proposals from the private sector on new products, institutions and ways of measuring risk.

More importantly, we will be progressively allowing more foreign competition. Notwithstanding the region�s present economic difficulties, the foreign banks which take a long view of the region�s prospects will still find many opportunities in the region. Many Asian companies require help to restructure and consolidate, while foreign firms looking for acquisitions need investment-banking assistance.

The famous Square Mile of the City of London has long been a leading financial centre. Singapore, too, is a key financial centre, within the Asian region. I am confident that we can benefit from each other�s expertise and experience.

Distinguished guests

Please join me in a toast to the good health of the Right Honourable Lord Mayor of London and Mrs Nichols, to the continued prosperity of Britain and the enduring friendship between our two countries.

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