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3     SFEMC’s Objectives
4     Chairman’s Message
7     Singapore: The Art of Building a
      Global City
23    Singapore as a Business Hub
	     •	 The	Barclays	Capital	Experience
       •	 Citi	–	A	Leading	Financial	Services	
          Institution in Singapore
       •	 Deutsche	Bank’s Presence
       •	 Standard	Chartered:	Leading	the	Way	
          in Singapore
31    2007 Singapore Asset Management
      Industry Survey
37    Sub-Committee Reports
42	   Members’	Listing
44    Index	of	Topics	in	the	
      Past Reports

The Committee aims to foster growth of the Singapore financial
market	 as	 a	 leading	 international	 centre	 for	 transactions	 in	
foreign	 exchange,	 money	 market,	 fixed	 income	 and	 derivatives	
                    Its specific objectives are:
                    •	 To	foster	the	growth	and	development	of	the	treasury	market	in	
                    •	 To	enhance	the	stature	and	reputation	of	the	Singapore	markets	
                        by promoting high standards of professional conduct and
                    •	 To	discuss	technical	issues	and	recommend	appropriate	standards	
                        and	codes	for	use	in	the	market.	In	this	capacity,	the	Committee	
                        is	responsible	for	the	Singapore	Guide	to	Conduct	and	Market	
                        Practices	for	Treasury	Activities	(“Blue	Book”);	
                    •	 To	 serve	 as	 a	 channel	 of	 communication	 amongst	 market	
                        participants	 and	 the	 Monetary	 Authority	 of	 Singapore	 (MAS);	
                    •	 To	 mediate	 disputes	 among	 market	 participants	 where	 the	
                        parties involved agree to such mediation.

                    The	 Committee	 also	 works	 closely	 with	 the	 Association	 of	 Banks	
                    in	 Singapore,	 the	 Singapore	 Investment	 Banking	 Association,	 the	
                    Singapore	Money	Brokers	Association,	ACI	Singapore	–	The	Financial	
                    Markets	Association	and	Committees	of	similar	nature,	locally	and	
                    globally,	involved	in	the	financial	markets.

C HA I R M A N ’ S M E S S A G E
C HA I R M A N ’ S M E S S A G E

          Much	has	happened	to	the	global	financial	markets	since	our	last	biennial	report	in	
          2006. The credit crisis that first started in July 2007 has demonstrated how globally
          connected	and	intertwined	the	financial	markets	are.	From	the	initial	decoupling	story	
          that	Asia	enjoyed,	Asian	markets	has	since	the	beginning	of	2008	been	coupled	with	
          the	fortunes	of	global	financial	markets.

          The	Singapore	financial	sector	continues	to	enjoy	good	growth,	registering	a	
          16.9%	yoy	growth	in	2007	and	a	modest	12%	during	the	first	half	of	2008	on	
          the	back	of	relatively	robust	Asian	economic	growth,	increased	fund	management	
          and	private	banking	activities	in	Singapore.	Along	with	these	developments,	the	
          Singapore	Foreign	Exchange	Committee	has	been	involved	with	various	initiatives	
          and	developments	to	foster	the	growth	and	development	of	the	financial	markets	in	

          The	Committee	partnered	with	the	Association	of	Banks,	Singapore	(ABS)	to	
          undertake	a	survey	on	trade	confirmations	on	Treasury	and	market	related	
          transactions	which	allowed	us	to	further	streamline	confirmation	templates,	
          furthering	the	straight-through	processing	aspects	of	transactions.	I	would	like	to	
          thank	the	ABS	and	the	Operations	Sub-Committee	for	spearheading	this	effort.

          Under	the	efforts	of	David	Wong,	Chairman	of	the	Manpower	Development	Sub-
          committee,	the	SFEMC	partnered	with	the	National	University	of	Singapore	(NUS)	
          Business	School	in	June	2008	to	pilot	an	internship	programme	for	its	undergraduates	
          where	the	students	underwent	a	2-week	financial	foundation	programme	and	

subsequently	took	up	attachments	              Practices and Code of Conduct
with various financial institutions.           Handbook	and	worked	with	the	ABS	
The committee aims to develop this             to review the test questions for the
partnership further to enhance and widen       above. The Sub-committee was active
the pool of talent for the financial sector.   in	preparing	the	NUS	interns	with	the	
                                               fundamentals	of	global	markets	prior	to	
The	Market	Development	Sub-committee,	         their attachements with various financial
led	by	David	Dredge,	worked	with	the	          institutions in Singapore.
ABS	to	develop	a	rate	fixing	mechanism	
for	the	Vietnamese	Dong	and	Pakistani	         The	Public	Relations	Sub-committee,	led	
Rupee	currency.	Its	work	was	further	          by	Mayur	Ghelani,		was	also	kept	busy	
extended	to	creating	a	template	for	a	         with	its	efforts	to	liasie	and	network	with	
“back-up”	rate	quotation	in	the	event	         the other regional and global committees.
of	a	market	disruption.	The	committee	         The SFEMC participated in the second
was	also	actively	involved,	in	coordination	   global FX committee meeting in April
with	the	Operations	Sub-Committee,	            2008	which	was	held	in	London.	The	next	
and	working	with	ISDA	and	EMTA	on	             meeting	is	expected	to	be	held	in	2009	in	
standardising the documentation for other      Singapore.	I	would	also	like	to	thank	the	
non-deliverable	market	products	such	          Sub-committee for their efforts in putting
as	Non-deliverable	Interest	Rate	Swap,	        together this Biennial Report.
Non-deliverable	Swap	and	Non-deliverable	
Option.                                        Finally,	I	would	like	to	express	my	sincere	
                                               gratitude	and	thank	my	fellow	committee	
Following	the	previous	work	of	the	            members,	both	past	and	present,	for	
Market	Development	Sub-committee	              their invaluable contributions to this
on creating a standardised confirmation        committee.	A	special	thank-you	to	the	
template	for	Non-deliverable	forwards	and	     Chairmen	of	the	Sub-committees,	who	
Non-deliverable	Swaps,	the	Operations	         have	contributed	extensively	to	the	
Sub-committee,	led	by	Bill	Chua	worked	        SFEMC. My sincere appreciation and
with	market	participants	to	automate	such	     gratitude to the Monetary Authority of
trade confirmations to further streamline      Singapore for their active participation
the settlement and confirmation process        and	support	for	the	work	of	this	
amongst	market	participants.	In	addition,	     committee.	I	would	also	like	to	thank	
the	Sub-committee	worked	with	the	             each and every participant in the SFEMC
ABS to identify further processes to           and various Sub-committees who have
streamline trade confirmations to include      helped the SFEMC achieve its goals of
OTC	Foreign	Exchange	and	Interest	Rate	        fostering and ensuring that the Singapore
Derivatives.	As	a	result	of	this	effort,	      financial	market	continues	to	grow	and	
standard confirmation and settlement           remains part of the Asian growth story.
templates were created for Foreign
Exchange	Options	and	Interest	Rate	
Derivatives	for	the	industry.	

With	increased	product	sophistication	         Loh Boon Chye
and	development,	the	Market	Practices	         Chairman,
Sub-Committee	led	by	Wong	Ban	Suan	            Singapore	Foreign	Exchange	Market	
undertook	a	review	of	the	Market	              Committee

     The Art of Building a Global City1
            S A N J E E V 	 S A N YA L ,
            A D J U N C T 	 F E L L O W,
            I N S T I T U T E 	 O F 	 P O L I C Y 	 S T U D I E S ,	

            Singapore	 is	 making	 a	 significant	 effort	 to	 transform	
            itself	into	Asia’s	leading	Global	City.	This	paper	explores	
            the economics of twenty-first century cities. It analyses
            the role of clustering and of deliberate urban planning.
            It	also	looks	at	the	relative	dynamics	of	financial	and	
            art	hubs.	Finally,	it	provides	a	framework	for	thinking	
            about	 Singapore’s	 urban	 strategy.	 In	 particular,	 it	
            asks	 the	 following	 questions:	 What	 are	 the	 roles	 of	
            “hard”	 and	 “soft”	 architecture?	 Should	 a	 twenty-
            first	century	city	be	structured	or	unstructured?	What	
            is the importance of population size in determining
            minimum	cluster?	

                                		An	earlier	version	of	this	paper	was	published	as	a	Working	Paper	by	the	
                                  Institute	of	Policy	Studies,	Singapore	in	January	2007.	The	author	is	also	
                                  the	Regional	Chief	Economist	of	Deutsche	Bank.	

    The Singapore Government has an               cities provide two important socio-
    explicitly	stated	goal	to	turn	the	city-      economic inputs that are dependent on
    state into Asia’s pre-eminent Global City.    human concentrations. Improvements
    Given	the	success	of	London	and	New	          to telecommunications have not yet
    York	in	recent	years,	this	is	certainly	a	    provided an alternative to these two
    model	worth	exploring.	Although	there	        factors:
    are	many	contenders,	Asia	does	not	yet	
    have	a	truly	“global”	city.	The	city	that	    Uncodifiable Human Interaction.
    can position itself as the global city for    Despite	the	dramatic	improvements	
    Asia has much to gain.                        in	electronic	communication,	many	
                                                  economic activities cannot be codified or
    Before	exploring	the	dynamics	of	a	           electronically	transmitted	and,	therefore,	
    successful	global	city	in	greater	detail,	    still require face-to-face interaction. This
    it is first important to understand what      is especially true of two broad types of
    drives urban agglomeration in the             activity. The first encompasses activities
    twenty-first	century.	Historically,	cities	   that	require	a	constant	exchange	of	
    have	existed	for	a	variety	of	reasons	        ideas	and	’fuzzy	information’,	especially	
    –	defense,	administration,	religion,	         those activities that are driven by
    trade and industry. The last two factors      innovation,	creativity	and	the	diffusion	
    were	the	key	drivers	of	urban	growth	         of ideas. Cities create concentrations of
    since the Industrial Revolution of the        human capital and constantly changing
    late	eighteenth	century.	However,	            ’random	networks’	of	people	and	
    over	the	last	few	decades,	advances	in	       institutions that are critical to innovation
    communications and transportation have        and	the	diffusion	of	ideas.	Second,	
    meant that the physical requirements          direct human interaction is critical to the
    of production benefit less from being         command-and-control functions of large
    located	within	cities,	prompting	             international organisations. Personal
    commentators in the early nineties            contact is not just necessary for the
    to	predict	the	decline	of	cities.	Yet,	       exchange	of	ideas	but	also	for	building	
    despite	these	gloomy	predictions,	            trust. The globalised world needs large
    certain cities have thrived over the          financial	and	commercial	hubs	like	
    last	decade	–	London,	New	York,	              London	and	New	York2.
    San	Francisco,	Boston.	Their	success	
    is due to the fact that post-industrial

                                                      For a detailed discussion of the role of Global Cities
                                                      in the globalized production process read: “The
                                                      Global	City”	by	Saskia	Sassen,	Princeton	University	
                                                      Press,	2001

Lifestyle. Cities increasingly support              such	as	New	York	and	London,	though	
the needs of consumption rather than                this need not necessarily be the case.
production.	In	order	to	be	successful,	             There are many smaller cities that have
cities provide a clustering of ’hard’               successfully carved out a unique space
amenities	such	as	schools,	restaurants/             for	themselves	in	the	global	grid	–	
bars,	hospitals,	shops,	theatres,	                  Boston	in	education,	the	development	of	
museums,	airports	and	specialised	                  high technology and fund management;
medical care. Cities also concentrate               San Francisco for lifestyle and
’soft’ amenities such as cultural and               information technology; Edinburgh in
social	organizations,	friends	and	family.	          the Arts and fund management. Post-
Organisations and individuals are                   industrial urban re-engineering is as
prepared to pay the higher costs that               much an art as it is a science. Singapore
living in cities typically implies because          must	keep	an	open	mind	about	the	
the clustering of amenities allows                  elements that will successfully transform
them to lead lifestyles that are not                the city into a global city.
easily replicated in a less concentrated
environment3.                                       THE IMPORTANCE OF ‘CLUSTERING’

Uncodifiable human interaction and                  Several	factors	help	to	explain	the	
lifestyle	are	not	mutually	exclusive	               success	of	global	cities.		Human	capital,	
factors. Many amenities that support                hard	and	soft	amenities,	a	multicultural	
lifestyle are also an integral part of direct       milieu,	’urban	buzz’	and	international	
human interaction. Ideas are generated              linkages	all	play	a	role	in	defining	a	
and	exchanged	in	universities	as	well	              global city4. Human interaction and
as cafes. They are both important to                lifestyle require a clustering of human
innovation and lifestyle. Over the past             capital,	institutions	and	amenities	that	
decade,	cities	that	support	lifestyle	              are intertwined. Those cities that have
and human interaction have carved                   successfully delivered the clustering of
out a different role for themselves                 these inputs have demonstrated that
in the twenty-first century. At the                 they are able to survive the decline of
pinnacle of this new phenomenon are                 cities as industrial and transportation
the	so-called	“Global	Cities”	that	act	             hubs.	Indeed,	London	provides	a	striking	
as nerve centers supporting the global              example	of	this	transformation.		Despite	
economy. Singapore is in the process of             the fact that it no longer possesses an
transforming itself into a nerve center for         active	port,	London	remains	one	of	the	
the rapidly growing Asian region.                   world’s great shipping hubs because
                                                    it	has	retained	the	financial,	legal	and	
However,	it	is	important	to	recognise	              logistical activities that support the
that this is not a definitive model but             global	shipping	industry.	As	an	example,	
rather one of that has many different               Lloyds	of	London	remains	the	pre-
permutations.	The	term	“Global	City”	               eminent	market	for	Maritime	insurance	
conjures	up	images	of	a	mega-polis,	                and re-insurance. This concentrated

	 	For	a	broader	discussion	see	“Consumer	City”,	
3                                                   4
                                                        	“Small	Country	to	Big	City”,	Sanjeev	Sanyal,	Global	
  Edward	Glaeser,	Jed	Kolko	&	Albert	Saiz,	HIER	         Markets	Research,	Deutsche	Bank,	Oct	2003;	
  Discussion	Paper	June	2000.	                           “Singapore:	Asia’s	Global	City?”,	Sanjeev	Sanyal,	
                                                         Paper presented at the Fourth Singapore Economic
                                                         Roundtable,	March	2005.	

     milieu has an internal dynamic that is so       ‘global city’ capable of interaction with
     powerful that it matters little that the city   the other major global cities of the
     is no longer a physical shipping hub.           world.	Within	Asia,	Singapore	is	well-
                                                     positioned to assume that mantle5.
     To succeed as a cutting-edge twenty-            It has many of the necessary initial
     first	century	city,	Singapore	must	             conditions: it is one of the most multi-
     ensure that it builds up the minimum            cultural	cities	in	Asia;	it	has	excellent	
     clustering required to sustain a global         civic amenities; it already has a well-
     city. Conceptual parallels can be               developed financial and business cluster;
     drawn with industrial clustering but a          it possesses good communication and
     post-industrial urban cluster is more           transportation	networks.	Furthermore,	
     dependent on intangible inputs and              it has the advantage of a stable political
     linkages.		Furthermore,	the	linkages	           environment and a government that
     within the system are themselves                has made this paradigm a central
     ephemeral	and	dynamic.		Indeed,	much	           element of its economic strategy for the
     of	the	benefit	from	’random	networks’	          next	decade.	Additionally,	it	enjoys	a	
     is	derived	from	the	fact	that	the	linkages	     liberal	immigration	policy,	an	increased	
     between people and institutions are             investment in educational and cultural
     continuously re-configuring. This               activity and an overt encouragement for
     explains	why	some	cities	have	developed	        economic activities deemed necessary
     an edge with respect to creativity and          for the development of activity clusters.
     innovation. Modern cities cannot be
     hard-wired in quite the same way that           However,	there	are	those	who	feel	
     traditional industrial clusters were in the     that	Singapore	lacks	the	commercial	
     past. This does not mean that deliberate        and cultural ’buzz’ that characterises
     government policy cannot play an                global cities. The Government has
     important role in creating clusters.            acknowledged	this	criticism	and	is	
                                                     currently trying to address this issue.
     CAN SINGAPORE MAKE THE                          More	fundamentally,	it	has	been	argued	
     TRANSFORMATION?                                 that it is futile to deliberately plan a
                                                     global city since most global cities were
     Asia	has	many	large	cities.	Yet,	while	         not the product of deliberate strategic
     some	have	come	close,	Asia	does	not	            planning	but,	rather,	evolved	from	an	
     have a truly global city. As the Asian          earlier	milieu.	It	is,	therefore,	pertinent	
     region grows in importance for the              to question the validity of such a plan for
     global	economy,	it	is	increasingly	likely	      Singapore.
     that an Asian city will develop into a
                                                     ORGANIC EVOLUTION VERSUS
                                                     INTELLIGENT DESIGN

                                                     There is considerable disagreement
                                                     amongst	experts	about	the	role	of	top-

                                                     	“Singapore:	Asia’s	Global	City?”,	Sanjeev	Sanyal,	

                                                      Paper presented at the Fourth Singapore Economic
                                                      Roundtable,	March	2005.

down government policy in developing          has spontaneously evolved into a post-
a post-industrial financial and cultural      industrial	success,	there	are	several	that	
hub. It is true that many of today’s global   have failed to achieve the transformation
cities are largely the result of organic      (Detroit,	Birmingham	for	example).		
evolution rather than the product of          Darwinian	evolution	is	a	brutal	process.	
deliberate	planning.		London	and	New	         Given	its	position	as	a	city-state,	
York	have	developed	as	successful	            Singapore	can	neither	afford	the	luxury	
financial	centers	on	the	back	of	pre-         of	the	time,	nor	the	risk,	associated	with	
existing	clusters	that	owe	their	existence	   an organic evolutionary transformation
to their past as major ports and industrial   process.	It	is	forced	to	take	a	more	
hubs.	Similarly,	Boston’s	success	since	      interventionist position in the pursuit of
the eighties has much to do with a pre-       its goal to achieve the status of Asia’s
existing	cluster	in	education.	               pre-eminent global city.

It is frequently argued that the dynamics     Is	this	a	viable	alternative?	Is	it	possible	
that drive global cities are fundamentally    to create a vibrant urban cluster by
unstructured	and,	therefore,	cannot	          deliberately guiding resources in a
be planned. This does not mean that           particular direction in an effort to speed
the advocates of organic evolution can        up	urban	change?	History	offers	some	
completely disregard the role of the          examples,	such	as	Ptolemaic	Alexandria,	
state. The state plays an important role      Florence during the Renaissance
in maintaining basic civic amenities          and	nineteenth	century	Paris,	where	
and general governance. Also specific         deliberate state policy acted to promote
policies may be designed to help shape        a	city	of	global	commercial,	intellectual	
future	development	–	as	was	the	case	         and	cultural	importance.	While	it	is	true	
for	London	and	the	‘Big	Bang’	financial	      that	the	Western	global	cities	of	today	
sector reforms of the late eighties.          are not the products of ’intelligent
                                              design’,	it	is	also	true	that	this	option	did	
Applied	to	Singapore,	it	suggests	            not	exist	during	their	early	development.		
that government can support the               Indeed,	until	the	early	nineties,	most	
transformation process by reducing            experts	were	predicting	the	demise	of	
regulation,	withdrawing	the	public	           cities rather than an alternative urban
sector and playing a less interventionist     model.		Consequently,	the	revival	of	
role.		But	the	greatest	single	drawback	      these cities was necessarily organic.
to	organic	evolution	is	that	it	can	take	
an	extremely	long	time	to	achieve	            In	contrast,	Singapore	has	a	number	
the desired goals. Boston endured             of well-established models that it can
six	decades	of	gradual	decline	before	        use to understand the dynamics of
its eventual revival in the eighties6.        post-industrial city development. As a
Similarly,	New	York	experienced	long	         late	entrant,	it	is	in	a	better	position	to	
periods of urban crisis in the seventies      plan for certain outcomes and it already
and early eighties7. For every city that      has an enviable record of economic

                                                  	 “Reinventing	Boston:	1640-2003”	Edward	Glaeser,	
                                                    NBER	Working	Paper,	December	2003.	
                                                   	“Urban	Colossus:	Why	is	New	York	America’s	Largest	
                                                    City?”,	Edward	Glaeser,	NBER,	June	2005

     re-engineering.		In	fact,	Singapore’s	         the most effective way to create an
     relatively recent industrialisation was        environment	of	’random	networks’	that	
     achieved almost entirely through               have,	if	anything,	benefited	from	the	
     intelligent design rather than organic         advances in electronic communication.
     growth. It was able to do this because         Urban density still offers a large
     it could copy ‘best-practice’ from             advantage over other methods for
     existing	industrial	countries.		There	is	no	   conducting the necessary functions of a
     fundamental	reason	why	this	experience	        financial hub.
     cannot be replicated to achieve its
     goal of becoming Asia’s global city.           London	is	probably	the	quintessential	
     Note	also	that	the	two	strategies	are	         example	of	how	a	global	city	performs	
     not	exclusive	but	a	continuum.		What	          as a financial centre. Although there are
     is	needed	is	a	strategic	mix	that	sways	       multiple factors that have contributed to
     towards intelligent design (which in           London’s	development	as	a	global	city,	
     some areas may require no more than            we concentrate on three elements that
     encouragement	of	the	organic	process).	        have relevance for Singapore’s strategic
                                                    Force of Gravity:	London	has	long	
     Successful global cities are often also        been an important financial and business
     financial hubs. Such hubs include              centre	but,	in	the	late	eighties,	it	was	
     activities that are directly a part of the     only marginally ahead of its European
     financial system as well as business           rivals,	Paris	and	Frankfurt.		London	
     and commercial activities that cluster         did,	however,	have	a	few	advantages.		
     together in such hubs (such as corporate       Britain’s imperial past had left the city
     headquarters,	newswires,	lawyers,	             with	a	sizeable	finance-business	cluster,	
     accountants).		Few	other	economic	             a	flexible	common-law	legal	system	and	
     activities play so well to the comparative     the international language of commerce.
     advantage of urban agglomeration.              But it also had disadvantages that
     Financial hubs are intensive users of          included the fact that it was considered
     information,	innovation,	and	direct	           outside	the	core	of	Europe	(indeed,	
     human	interaction.		Moreover,	they	            the	UK	has	still	not	joined	the	Euro	
     are propelled by human-to-institutional        area).		Nonetheless,	London	was	able	
     linkages	that	are	constantly	evolving	         to transform its small advantage into a
     in unpredictable ways. Cities provide          significant lead by the late nineties. It is

estimated	that	London	now	accounts	for	                 activities’ are an integral part of the
between	40-50%	of	all	’high-finance’	                   financial hub. The hub would not
in the European Union8.		Similarly,	60-                 function effectively without this broader
70% of global issuance and trading in                   socio-economic support structure. This
international bonds and over 30% of                     is very different from the industrial city
international	foreign	exchange	trading	                 model	of	the	past,	which	was	more	
takes	place	in	London.		The	process	of	                 compartmentalised. The successful
agglomeration has resulted in increasing                evolution of a financial hub depends on
returns of scale as economic activity has               getting	the	’mix’	right	rather	than	on	the	
gravitated	to	London.		In	part	this	is	due	             individual ingredients.
to	the	fact	that	financiers,	corporate	
leaders,	lawyers	and	other	functions	                   Open-ended Model: The success
that	support	the	financial	markets	                     of	London	as	the	world’s	financial	
relocate to be closer to the primary                    capital owes much to the ’Big Bang’
market	functions.	Beyond	a	certain	size,	               deregulation	of	1986.	One	implication	of	
this process becomes a self-fulfilling                  this change was that foreign companies
dynamic. Other European financial                       could	buy	British	brokerages	or	become	
centers	have,	as	a	result,	have	been	                   direct participants themselves. This
relegated	to	become	spokes	to	London’s	                 effectively undermined the closed
hub. For Singapore this implies that it                 “old-boys	club”	of	the	City	brokers	
must	pursue	a	’winner-takes-all’	model,	                and	merchant	banks.	European	
where a small initial advantage multiplies              and	American	banks	responded	by	
very rapidly. Singapore is currently one                purchasing some of the country’s best
of several medium-sized hubs within                     known	names	(ING	bought	Barings,	
the Asian region but it is clear that its               Deutsche	Bank	bought	Morgan	
objective must be to ensure that it builds              Grenfell).	At	first,	commentators	argued	
and maintains critical mass.                            that foreign ownership would devalue
                                                        the importance of being in the City.
Getting the mix right: A second                         However,	we	now	know	that	it	created	a	
interesting	aspect	of	London’s	economic	                place	where	global	banks	could	network	
model is the closely interwoven socio-                  with each other through their newly
economic system. The number of ‘City’                   established subsidiaries. The vibrant
jobs in the financial sector amounted                   London	market	of	today	is	a	direct	result	
to	barely	317,000	in	2003.	Even	if	one	                 of the success of this clustering. The
includes employment in the related                      lesson	to	be	learned	from	the	London	
businesses that support the financial and               experience	is	that	achieving	critical	mass	
commercial	cluster,	the	number	of	jobs	                 is an important goal in itself but critical
amounted	to	702,000.		However,	this	                    mass is best achieved through openness
cluster indirectly depends on a plethora                rather	than	protectionism.	At	times,	
of sectors ranging from restaurants                     this will mean that the authorities have
and entertainment to real estate and                    to sacrifice the needs of established
education. These additional ’support                    domestic companies in order to support

	 The	City’s	Importance	to	the	EU	Economy,	CEBR,	Feb	


     the overall hub (this is true for many           key	to	thriving	art	hubs	like	New	York	
     sectors	ranging	from	airlines	to	banking).	  	   and	London.	Singapore	should	not	be	
     The Singapore Government appears to              unduly apologetic about top-down
     be very aware of this particular issue as it     patronage as a means to encourage
     has opened up the financial and airlines         Art. This patronage can be achieved
     sectors to competition and has followed          via financial support channels (grants
     an aggressive policy of entering into            etc.)	or	non-financial	incentives	(for	
     bilateral free-trade arrangements.               instance,	recognition).	The	key	point	is	
                                                      that,	contrary	to	popular	perception,	
     BUILDING AN ART/ENTERTAINMENT                    the Arts sector benefits more from
     HUB                                              direct top-down intervention and less
                                                      from	social	deregulation.	Of	course,	
     Many successful global cities have a             patronage is at its most effective when
     thriving arts and entertainment sector.          combined with openness of mind and
     Art,	like	high	finance,	also	requires	           the encouragement of innovation.
     uncodifiable human interaction and
     a concentration of soft and hard                 Multiple hubs:	In	the	previous	section,	
     amenities.		However,	there	are	some	             we discussed how the competition to
     interesting differences that are worth           be	a	financial	hub	is	a	’winner-takes-
     highlighting:                                    all’ tournament because of the force
                                                      of gravity. This is less true for an arts
     Direct Patronage: Much of the                    and	entertainment	hub.	There	are,	of	
     discussion related to the creation of an         course,	many	gains	to	be	reaped	from	
     arts	hub	emphasises	the	lack	of	structure	       clustering	the	arts	and	entertainment,	
     in the creative process. This is a view          but the force of gravity appears to be
     that has become fashionable through              weaker	than	for	a	financial	hub.		Europe	
     the	work	of	Richard	Florida9 who argues          has	many	thriving	cultural	centers	like	
     that an arts hub cannot be planned               Paris,	Berlin	and	Vienna,	but	only	one	
     but will develop spontaneously when              dominant	financial	hub.	In	fact,	arts	
     intellectual and behavioral freedoms are         centers may derive benefit from being
     permitted.	Oddly,	historical	evidence	           separated from the main hub. As a city-
     does not fully support this view. There          state	Singapore	does	not	have	the	luxury	
     are	several	examples	of	great	art	               of multiple hubs. It can only concentrate
     developed under the rule of despotic             on developing an arts hub with its own
     monarchs (Versailles and the Taj Mahal           unique character.
     to	name	a	few).	Art	is	not	simply	the	
     result of unregulated bohemianism but            Compartmentalisation: An
     the	result	of	’patronage’.		For	example,	        important facet of the global financial
     Florence could not have become a                 hub is that the financial and business
     centre of Renaissance Art without the            cluster is an integral part of the urban
     patronage	of	the	Medici	family.		Today,	         system itself and draws heavily from
     patronage from private sources is the            the city’s general socio-economic

                                                           A short introduction of Richard Florida’s views is
                                                          contained	in	“The	Rise	of	the	Creative	Class”,	Richard	
                                                          Florida,	Washington	Monthly,	May	2002.

infrastructure.		Not	all	great	cities	      a city’s underlying architecture. This
are financial hubs but most financial       architecture	includes	not	only	buildings,	
hubs are already great cities. This         bridges,	roads	etc	(i.e.	hard	architecture)	
is not as true in the area of arts and      but	also	a	plethora	of	social,	cultural,	
entertainment,	as	it	is	often	possible	     government and academic institutions
to compartmentalise the art and             (i.e.	soft	architecture).	The	arrangement	
entertainment cluster. There are            of hard and soft architecture has an
extreme	examples	of	this	–	Las	Vegas,	      important bearing on the way the
Disneyland	Orlando,	Monte	Carlo	or	         economic system functions and new
even Hollywood (arguably a somewhat         clusters develop. This is not just true
separate	entity	from	Los	Angeles).	The	     of	today’s	cities,	it	was	also	true	of	
possibility of compartmentalisation         industrial and pre-modern cities as
makes	it	somewhat	easier	to	develop	        well.		But,	what	is	new	about	post-
an arts and entertainment hub from          modern cities is that they are less
scratch as compared to building a           driven by the needs of ’production’
financial hub. Edinburgh is a strong        (i.e.	manufacturing,	shipping,	
example	of	how	a	focused	effort	can	        administration).		Instead,	what	counts	
lead to a much wider cluster. The           is the way people live their lives and
Edinburgh transformation has its roots      interact with each other. The hard and
in the Edinburgh International Festival     soft architecture of a post-industrial city
(focused	on	performing	arts)	that	began	    should be designed to enhance these
in	1947.		Over	time,	this	event	spawned	    two	facets.		We	highlight	a	few	factors	
an informal Fringe Festival that has        that contribute to a city’s architecture:
dramatically grown in size since the
late Seventies. Today the Edinburgh         Mix-and-Match: Until	recently,	cities	
Arts Festival has become the closest        were designed for production rather
equivalent that the Arts world has to the   than lifestyle. This necessitated that
Olympics,	staging	“26,995	performances	     the architecture was designed to move
of	1800	shows	in	247	venues,	and	           material	and	workers	to	and	from	
hosted	16,190	performers”	in	2005.          the place of production as efficiently
                                            as	possible.		Since	workers	were	not	
HARD AND SOFT ARCHITECTURE                  expected	to	live	in	the	city	center,	this	
                                            spurred the development of city suburbs.
So far we have described cities as          In	short,	there	was	a	clear	distinction	
disembodied	economic	systems	but,	          between	where	one	worked	and	where	
in	reality,	the	urban	economy	relies	on	    one lived. Technology has changed this.
                                            People now live in cities in order to enjoy
                                            the concentration of amenities and to
                                            interact	with	other	people.		However,	
                                            people are infinitely heterogeneous and
                                            they live their lives in many different
                                            permutations and combinations.

     Consequently twenty-first century cities      Economics Society of Singapore. In the
     must	develop	an	architecture	that	takes	      past,	these	activities	were	peripheral	
     this into account. One implication is that    to the central economic activity of the
     city-centers	will	have	a	‘mix-and-match’	     city but today they are more frequently
     of	different	activities	–	recreational,	      the	main	reason	that	cities	exist.	The	
     educational,	residential	and	medical.		       problem,	again,	is	that	it	is	not	always	
     We	already	have	evidence	of	the	impact	       possible to pre-determine how people
     of	this	new	thinking	in	Singapore’s	          will interact. It requires deliberately
     development with the construction of          planned,	unstructured	spaces	in	
     the	Singapore	Management	University,	         the	hard	architecture	–	something	
     the	Esplanade	theatre	complex,	the	           that	Prof.	William	Lim	calls:	“Spaces	
     Integrated Resort and the Gardens by          of	Indeterminacy”10.		Similarly,	the	
     the	Bay,	all	within	walking	distance	of	      rules	that	regulate	soft	architecture,	
     each	other.		We	are	also	likely	to	see	       such	as	philanthropic	trusts,	cultural	
     more residential conversions in the           associations,	think-tanks	etc.,	should	
     Central	Business	District.		However,	         also be eased in ways that encourage
     there is probably a broader need to do        variety and dense human interaction.
     away with the rigid zoning approach of        An	important	caveat	to	note,	however,	
     the	past.		Note	that	the	result	may	be	a	     is	that	“indeterminacy”	does	not	mean	
     more	fluid	city,	but	it	is	not	necessarily	   “chaos”.		As	a	study	by	Glaser	and	
     unplanned.                                    Gottlibet	shows,	the	decline	in	urban	
                                                   crime in US cities in the nineties was
     Interactive: Post-industrial cities need      encouraged by civic interaction and
     to create the infrastructure where people     urban revival11.
     can interact and have chance meetings.
     The latter is important because so much       The dangers of overbuilding: A
     depends on the ability of cities to allow     key	driver	of	human	interaction	in	urban	
     unpredictable	’random	networks’	to	           centres	is	concentration.	However,	
     develop.	In	contrast,	telecommunications	     overbuilding is a serious threat to the
     only allow lines of interaction that have     process.		In	the	past,	overbuilding	
     been actively sought out. Cities need         merely meant wasted capital and did not
     spaces	that	encourage	such	interaction,	      directly affect the functioning of other
     be	it	bars	and	restaurants,	parks,	           production processes. But overbuilding
     museums,	shops,	the	evening	dance	            in a post-industrial city may lead to the
     class	or	special	interest	groups	like	the	    dispersal	of	people	and,	consequently,	

                                                    	“Alternative	(Post)	Modernity:	An	Asian	Perspective”,	

                                                     William	SW	Lim,	2003
                                                    		“Urban	Resurgence	and	Consumer	City”,	Edward	

                                                     Glaeser	&	Joshua	Gottlibet,	HIER	Discussion	Paper	

16                                                   February 2006.
hurt the very interaction that drives the      organically	is	like	expecting	a	New	Years’	
city	economy.		For	example,	it	can	be	         Eve party to spontaneously erupt; it
argued that bars should be carefully           can happen sometimes but intelligent
clustered and the number of licence            planning will certainly improve the
restricted in order to ensure that there       probability.
are a few lively night spots rather than
several dull ones. This is just as true        Singapore’s planners should recognise
of	“soft”	architecture.		For	instance,	        the difference between a hard-wired
one Economics Society of Singapore             industrial	city	and	the	more	fluid,	mix-
(ESS)	may	be	a	good	way	to	encourage	          and-match,	post-industrial	city.		Coward	
the community of economists to                 and	Salingaros	suggest	that	“A	city	works	
interact,	while	several	ESS’s	would	           like	a	brain,	not	a	computer”12.		As	such,	
completely miss the point. Singapore’s         old industrial-era zoning laws that neatly
policymakers	must	to	be	mindful	that,	in	      separate out various human activities
building	a	new	facility,	they	do	not	divert	   will hurt the new urban paradigm
people from another facility. This does        by retarding human connectivity. Of
not mean that new facilities should not        course,	this	does	not	mean	that	we	
be	built,	rather,	it	means	that	planners	      abandon planning and haphazardly
need	to	be	extra	sensitive	to	the	pitfalls	    build	warehouses	in	residential	areas,	or	
inherent in the new paradigm.                  concert	theatres	next	to	Changi	Airport,	
                                               what is needed is a deliberate plan that
STRUCTURED AND UNSTRUCTURED                    encourages	human	interaction	and	makes	
                                               Singapore	an	enjoyable,	vibrant	place	to	
So far the discussion has highlighted          live	–	the	economics	will	naturally	follow.	
how the post-industrial city must have
a more fluid and indeterminate spaces          IS THERE AN OPTIMAL SIzE?
in order to allow for the new dynamics
of a twenty first century city. The need       The	underlying	theme	of	“clustering”	
for	such	a	flexible	architecture	has	          is central to the transformation of a
tended to encourage the view that new          city into a ‘global city’. In the earlier
global cities cannot be pre-planned but        sections,	we	discussed	the	dynamics	of	
must grow organically. But this is not         the	clustering	process.		However,	the	
necessarily true because fluidity can          process is only successful if the level of
be encouraged and enhanced through             activity reaches a minimum threshold.
planning.		For	example,	a	’wild	beach	         This is especially true in the development
party’	on	New	Year’s	Eve	may	appear	           of financial hubs because they benefit
to	be	unstructured	and	fluid,	yet	it	is	       from	concentrations	of	generalists	and,	
almost certainly planned. The event            therefore,	depend	on	a	broad	range	of	
would hardly be successful if no one           services and amenities that require scale
had	planned	the	venue,	music,	drinks	          to	be	economically	viable.	So,	size	matters	
and,	finally,	invited	people	to	attend.		      –	existing	global	cities	tend	to	be	large	
To	expect	a	vibrant	global	city	to	evolve	     cities.		With	an	estimated	population	of	

                                                    	“The	Information	Architecture	of	Cities”,	Andrew	
                                                     Coward	and	Nikos	Salingaros,	Jan	2004.

     4.4	million,	Singapore	is	not	a	small	city	                difficult to estimate empirically and the
     but	it	is,	admittedly,	much	smaller	than	                  results from different studies are neither
     most international and national financial                  consistent nor particularly compelling.
     centres.		According	to	United	Nation	                      Furthermore,	the	results	are	too	generic	
     estimates,	the	urban	agglomeration	of	                     to be of use in the specific estimation
     Tokyo	has	35.5	million	inhabitants,	New	                   of	the	minimum	size	needed	to	make	
     York/Newark	has	18.5	million,	Shanghai	                    Singapore a viable global city.
     has	12.6	million,	Hong	Kong	has	7.2	
     million,	Mumbai	has	18.4	million	and	                      Nevertheless,	one	finding	stands	
     London	has	7.6	million	(the	estimate	                      out	–	the	gains	from	a	successful	
     for	London	is	a	sizable	understatement	                    agglomeration can be so large that
     as it does not account for the urban                       even	an	urban	system	the	size	of	Tokyo	
     system that has developed in South East                    may not be too large!14 History also
     England)13.                                                suggests that there are gains from
                                                                crossing a threshold size. The list of
     This observation has often led to concern                  the very largest and most successful
     that Singapore is too small to be able to                  cities	in	the	world	–	which	includes	New	
     build up the minimum level of activity                     York,	London,	Chicago,	Paris	–	has	been	
     to become a full-fledged global city.                      remarkably	stable	for	centuries.	Others,	
     Some	commentators,	and	even	policy-                        like	Rome,	Delhi	and	Beijing,	have	been	
     makers,	have	argued	that	the	population	                   major urban centers for even longer. It
     needs to grow sharply in order create a                    is the second tier cities whose fortunes
     credible cluster. Analysts tend to set the                 tend	to	rise	and	fall.		Consequently,	
     minimum size for a global city at around                   it	appears	that,	once	a	large	enough	
     6-8mn	(about	the	size	of	Hong	Kong)	                       cluster of human capital and amenities
     but,	in	reality,	it	is	difficult	to	estimate	              has	been	developed,	the	benefits	of	
     the minimum size using an objective                        agglomeration are substantial and persist
     methodology.                                               for long periods. In the post-industrial
                                                                world,	the	difference	between	the	’men’	
     Since the seventies academic efforts                       and	the	’boys’	is	likely	to	be	even	greater	
     have been made to estimate the                             because cities are driven even more than
     optimal	city	size.		While	a	number	of	                     before by the principle of clustering.
     methodologies	have	been	developed,	
     the underlying premise is similar and                      In	the	context	of	Singapore’s	urban	
     relatively	simple	–	the	optimal	size	of	                   system,	the	analysis	argues	strongly	
     a city is the size at which the marginal                   that	Singapore	should	strive	to	‘bulk	
     gain from agglomeration is equal                           up’	–	but	only	as	long	as	the	economic	
     to the marginal cost of congestion.                        gains substantially outweigh the
     Unfortunately,	in	practice,	these	are	very	                escalating cost of congestion. Singapore

      	World	Urbanization	Prosepects	(2003	Revision),	
     13                                                         14
                                                                     “Agglomeration Economies and a Test for Optimal
       Population	Division,	United	Nations.	The	data	related	        City	Sizes	in	Japan”,	by	Yoshitsugu	Kanemoto,	Toro	
       to	estimates	for	2005.	Note	that	size	itself	does	            Ohkawara	and	Tsutomu	Suzuki,	Urban	Economics	
       not	make	for	a	financial	hub.	Many	large	cities	are	          Workshop,	Kyoto,	September	1996.
       not major financial centers although they may be
       important	cities	at	the	national	level	–	for	example	
       Lima	(8.1mn),	Lagos	(11.1mn),	Dhaka	(12.5mn).

should be at least as large as can be                 immigrant	or	the	descendent	of	one).		
comfortably contained in the available                Nonetheless,	the	social	implications	of	
area. A scenario planning document                    this	process	are	considerable,	even	if	
by the Urban Redevelopment Authority                  many of the new arrivals are willing to
suggested that the city-state can                     become citizens or permanent residents.
comfortably	hold	about	5.5	million	
people15.	More	recently,	a	figure	of	                 Second,	and	even	more	difficult,	is	the	
6.5million	has	been	mentioned	as	a	                   problem of maintaining the quality of
target	population	size,	although	some	                immigration. This model is dependent
commentators believe that this target                 on clustering human capital and not just
is still too small to be a credible cluster           people. If the quality of immigration
for a global city. But before targeting               declines,	the	costs	of	congestion	quickly	
ever	larger	populations,	it	is	important	to	          outweigh the gains from agglomeration.
recognise that even this level could pose             Unfortunately,	it	is	not	easy	to	
practical	problems	that	must	be	taken	                consistently	attract	high	quality	people,	
into account.                                         especially as there are many countries
                                                      and cities vying for the same talented
First,	the	incremental	population	                    people	(note	that	we	should	expect	
must be generated entirely through                    high attrition for this category of people
immigration.		At	present,	the	population	             and,	therefore,	the	gross	inflow	must	be	
size	is	approximately	4.4	million	with	               higher	than	the	net	rate).	
citizens and permanent residents
comprising	about	3.5	million.		However,	              Third,	the	maximum	possible	number	
the birth rate in the resident population             of inhabitants can only be comfortably
remains	too	low	to	maintain	the	existing	             accommodated after the necessary
population in the long run (the latest                infrastructure has been put into place.
reading suggests 1.26 births per woman                This	will	include	housing,	transportation	
of	childbearing	age).		Consequently,	the	             systems,	waste	treatment	plants	to	
additional population must be imported                name a few. Although Singapore has
within a relatively short period of time              a	very	good	track	record	with	respect	
for Singapore to achieve the threshold                to	pro-active	urban	management,	it	
level	within	15	years.		Also,	note	that	              nevertheless	takes	many	years	to	develop	
the ’gross’ rate of immigration must                  the necessary support infrastructure.
be	significantly	higher,	as	there	will	               Meanwhile,	the	city-state	runs	the	risk	
always be a fair amount of attrition.                 that	the	clustering	process	does	not	take	
Foreign immigrants have always been                   root.
an important segment of the population
and	Singapore	has	an	excellent	record	                The	process	of	“bulking	up’	is	not	
at integration (virtually everyone is an              just a matter of having a high target

     	URA’s	Concept	Plan	2001	(see

     population size. The strategy has its         immigration	system).		The	Singapore-KL	
     own	inherent	risks.	Nevertheless,	there	      urban system would immediately have
     are a number of ways that ’intelligent        a population of more than 10 million.
     design’ that can be used to mitigate the      There is no reason to worry that cheap
     constraints. Two possible strategies are      real estate on the mainland would
     discussed below. They are not mutually        suddenly cause an outflow because the
     exclusive:                                    new urban dynamic no longer functions
                                                   like	the	traditional	suburban	system.		
     First,	create	’pull’	factors	that	directly	   The old arrangement was a hub-and-
     identify and attract quality human            spoke	system	where	people	lived	in	the	
     capital rather than relying solely on the     periphery and commuted to the centre.
     job	market,	easy	immigration	laws	and	        The	new	urban	system	is	more	akin	
     the	quality	of	amenities.		As	an	example,	    to	a	network	of	nodes	–	for	example,	
     Singapore has begun to proactively use        the	urban	network	around	New	York	
     tertiary education to attract talented        extends	from	Connecticut	to	New	Jersey.	  	
     human capital to its city. The current        The	existence	of	cheaper	housing	in	
     policy of encouraging new academic            New	Jersey	has	not	adversely	affected	
     institutions,	such	as	the	Singapore	          Manhattan.		Similarly,	the	system	around	
     Management University and branches of         London	now	encompasses	much	of	
     foreign universities to locate their Asian    South-East	England.		Of	course,	many	
     campus in Singapore is an important           people still commute to the centre
     element of the overall strategy. The easy     but,	increasingly,	people	choose	to	live	
     availability of talented human capital        and	work	in	various	nodes	within	the	
     can itself encourage the development          network.		There	are	also	people	who	live	
     of	activities	that	employ	them,	thereby	      in the city and reverse-commute. This
     creating a virtuous cycle. Those students     process has economically benefited both
     who decide to leave Singapore will            the	inner-city	as	well	as	the	network	as	
     nevertheless create a useful global           a whole. A dual node urban system that
     network	that	feeds	back	to	the	city-state	    combines	KL	and	Singapore	is	plausible	
     in different ways.                            and	is	likely	to	benefit	both	cities	as	
                                                   well	as	subsidiary	nodes	like	Johor	
     Second,	the	Singapore	planners	could	         Bahru	(the	development	of	the	Iskander	
     explore	the	possibility	of	‘bulking	up’	      Development	Region	in	Johor	may	be	a	
     by using its geographical hinterland.         step	in	this	direction).	
     Although	Johore	Bahru	and	Kuala	
     Lumpur	are	located	in	another	country,	       CONCLUSION
     it may be possible to integrate them
     into the same urban system by building        Twenty-first	century	cities	exist	in	order	
     up high-speed transportation and other        to allow human interaction and enhance
     links	(perhaps	even	have	a	coordinated	       lifestyle. Such clusters developed

organically from an earlier milieu in         Third,	the	financial	and	business	cluster	
the	case	of	London	and	New	York,	but	         requires more generalised intervention
this does not mean that the process of        through the definition of rules and
clustering cannot benefit from deliberate     regulations,	the	establishment	of	civic	
planning.		Indeed,	the	process	can	be	        amenities,	the	design	of	attractive	
triggered and encouraged by ’intelligent      taxation	regimes,	as	well	as	an	
design’. This is particularly true for late   open-ended system that encourages
entrants in Asia who are able study           external	links.		In	contrast,	the	arts	and	
the	urban	dynamics	of	existing	global	        entertainment hub can benefit greatly
cities	in	Europe	and	North	America.		         from specific interventions in the form of
Nonetheless,	planners	must	note	that	         top-down patronage.
there is a fundamental difference
between the hard-wired planning of            The manner in which the ‘soft’ and
industrial cities and the fluid clustering    ‘hard’ architecture of a city is arranged
of post-industrial cities.                    has a strong impact on the way an
                                              urban cluster develops. Those planning
Successful global cities are often hubs       a post-industrial global city must ensure
for both financial and business activity      that these cities encourage human
as well as for arts and entertainment.        interaction,	enhance	lifestyle	though	a	
This is not surprising because they both      mix-and-match	of	amenities	and,	finally,	
require uncodifiable human interaction        avoid the dangers of over-building. A
as well as a concentration of hard            post-industrial city must have a fluid
and	soft	amenities.		However,	the	            structure that accommodates the need
characteristics of both types of clusters     for	spaces	of	indeterminate	usage.		With	
invite the following conclusions:             imagination,	there	is	no	reason	why	
                                              such a structure cannot be deliberately
First,	the	financial	and	business	hub	is	     engineered.
a generalist model that is able to create
a	beneficial	mix	of	various	ingredients	      While	it	is	difficult	to	be	definitive	about	
and is able to leverage the urban system      the optimal size that an aspiring global
as	a	whole.		In	contrast,	the	arts	hub	       city	should	strive	to	achieve,	it	is	clear	
can succeed as a narrower cluster and         that	size	is	an	important	element,	as	
is,	therefore,	more	easily	engineered	        long as the gains from agglomeration
through concentrated effort.                  outweigh the costs of congestion. In
                                              Singapore	‘bulking-up’	will	require	
Second,	the	financial	and	commercial	         a sustained pipeline of immigration
hub enjoys very strong economies of           without compromising social cohesion
scale. A successful cluster is able to        and the quality of human capital. Pro-
compete	with,	and	attract	business	           active strategies may be needed to create
from,	other	hubs.		In	contrast,	arts	and	     and	maintain	this	pipeline.		Ultimately,	
entertainment hubs do not necessarily         planning	authorities	may	wish	to	explore	
compete with each other in the same           the	idea	of	‘bulking-up’	by	using	the	
way. The inward gravity of a large            geographical hinterland rather than
cluster can be balanced by the gains          exclusively	relying	on	population	density	
derived by the differentiation from other     of the city-state alone.

Singapore as a Business Hub
            The Barclays Capital Experience

            Singapore has become for Barclays Capital a strategically
            important	 business	 base,	 and	 a	 regional	 operational	
            hub to support its global business growth. Since
            2004 Barclays Capital has increased its headcount in
            Singapore	to	2,400	from	230	to	support	the	expansion	
            of the firm’s business globally.

            Barclays Capital selected Singapore as its regional
            operational hub for numerous favourable factors
            including	its	political	and	social	stability,	commitment	
            to	financial	markets,	transparent	regulatory	and	legal	
            framework,	 efficient	 and	 reliable	 infrastructure,	 and	
            international accessibility.

     Singapore’s	large	pool	of	well-educated,	    on Singapore’s international standards
     English-speaking	local	talent	was	also	      of	excellence	to	use	the	country	as	
     key,	and	Barclays	Capital	has	since	been	    a solid base from which to grow its
     actively investing in the development of     presence in the region.
     Singapore’s	financial	services	workforce.	
     The	firm	has	been	working	closely	with	      In the past fours years Barclays Capital
     Singapore’s three universities on graduate   has substantially grown its business
     recruiting,	and	hires	and	trains	numerous	   presence	in	Singapore,	tripling	its	
     new Singapore graduates on an annual         front-office staff and in the process
     basis.                                       demonstrating the wealth of well-
                                                  qualified	talent	that	exists	in	Singapore,	
     On	the	home	front,	the	high	quality	         as well as the creative and talented
     of life and safe environment offered         resources that can be attracted to
     by Singapore is valued by Barclays           Singapore from around the world.
     Capital	and	its	employees.	With	good	
     local	and	international	schools,	high-       Many of Barclays Capital’s regional
     quality	housing,	reliable	transport	and	a	   front office businesses are now run
     harmonious multi-cultural society with       out	of	in	Singapore,	including	Global	
     all	its	associated	benefits,	home	and	hub	   Markets,	Distribution,	FX,	Commodities,	
     are now here in Singapore for thousands      Credit,	Futures,	Ecommerce,	Corporate	
     of the firm’s employees. This living         Advisory and Research. In early 2007
     environment has enabled Barclays Capital     Barclays Capital’s head of FX Ivan
     to	attract	new	and	experienced	financial	    Ritossa	relocated	to	Singapore	to	take	
     services talent to Singapore from other      on the additional role of Head of Global
     strategic	markets	in	the	region	and	from	    Markets	-	Trading,	Asia	Pacific	becoming	
     around	the	globe,	further	contributing	to	   the firm’s first global business head to
     the development of Singapore as a global     be based in Asia Pacific. Singapore was
     financial services centre.                   seen as the obvious choice for locating
                                                  our	regional	trading	head,	and	since	
     SINGAPORE AS A BASE FOR BUSINESS             then	he	has	also	taken	on	management	
     GROwTH IN ASIA                               responsibility for the firm’s global Prime
                                                  Services and Ecommerce businesses.
     Barclays	Capital,	along	with	other	major	
     global	banks,	continues	to	be	an	active	
     participant	in	market	developments	in	       REGIONAL HUB TO SUPPORT GLOBAL
     Singapore,	building	strong	partnerships	     GROwTH
     with the Singapore business community
     and its institutions including the           Barclays Capital’s Singapore-
     Monetary	Authority	of	Singapore	(MAS),	      based	global	infrastructure	hub,	
     Singapore	Exchange	(SGX)	and	Singapore	      the	International	Business	Centre,	
     Foreign	Exchange	Market	Committee	           was officially launched in 2004 by
     (SFEMC).	This	open	dialogue	and	sense	of	    Mr	Tharman	Shanmugaratnam,	currently	
     partnership with Singapore’s institutions    Minister for Finance. It was created by
     enabled Barclays Capital to become a         the	firm	primarily	as	an	IT,	Operations	
     bank	clearing	member	on	the	Singapore	       and Finance hub to complement the
     Exchange	(SGX).	The	firm	also	depends	       firm’s	existing	global	support	functions	

in providing services to the firm’s          general local financial reporting and
business	globally,	as	well	as	within	the	    Global	Markets	product	control,	into	
Asia Pacific region. Barclays Capital’s      a multi-national function of around
regional	COO	Jeff	Deck	is	also	based	in	     300 highly-qualified professionals with
Singapore.                                   clearly-defined teams across all functions
                                             in Finance. These include the addition
Since	2004,	the	firm’s	IT	function	in	       of a number of global controlling and
Singapore has grown from a team of           servicing functions to the Singapore
staff servicing the local needs of the       Finance	hub,	such	as	Product	Control	for	
Singapore	business,	to	a	group	of	1,100	     Global	Loans,	Commodities	and	Funds,	
experienced	technology	professionals	        as	well	as	Regulatory	Reporting,	Global	
servicing the global needs of the firm. In   Expense	Payments	and	Cost	Control.	
addition to being a regional hub directly
supporting Barclays Capital’s business in    While	around	half	of	the	current	
Asia	Pacific,	Singapore	has	increasingly	    Singapore-based Finance roles can be
become an IT hub for supporting the          attributed to the organic growth of the
firm’s global business. A wide range of      business	in	the	region,	the	remainder	
IT	services	are	provided	from	Singapore,	    are there to provide services to the
including	the	global	service	desk,	          firm’s growing global business. The
security	and	technical	administration,	      creation of Barclays Capital’s major
management of system infrastructure          Finance processing hub in Singapore also
such as databases and operating              mitigates	“operating	risk”.	By	providing	
systems,	and	support	of	applications	on	     significant	operating	flexibility	with	key	
a local and global basis.                    Finance	locations	in	the	UK	and	US,	the	
                                             firm has strengthened its global business
Also,	Singapore	is	home	to	a	team	of	        recovery and continuity capability.
over	500	developers	and	testers	working	
on	a	range	of	front,	middle	and	back	        Barclays Capital’s Singapore-based
office	applications.	A	prime	example	of	     Operations has developed from a
this is its testing team in the FX space.    regionally focused team into a truly
This team leverages the time zone            global	service	centre.	Currently,	
difference	with	London	to	provide	a	24	      this	Operations	hub	has	over	550	
hour development and testing capability.     professionals supporting all major
Development	undertaken	during	the	           asset	classes	across	Asia,	the	UK	and	
London	day	can	be	tested	overnight	by	       US	for	18	hours	every	working	day.
the	team	in	Singapore,	with	the	results	
waiting for the development team in          The Operations functions currently
London	to	action	as	soon	as	their	day	       run out of Singapore include those
begins. In this way Barclays Capital         for	Securities	–	Fixed	Income	and	
can provide high quality and robust          Equity	Processing,	Futures,	Derivatives,	
applications with rapid turnaround of        Treasury,	Loans,	Global	Transaction	
new features.                                Documentation	&	Management,	
                                             Collateral	and	Client	Valuation,	
Barclays Capital’s Singapore-based           Reference	Data	Support	and	
Finance department has been                  Operations Control.
transformed from one dealing with

Citi – A Leading Financial Services
Institution in Singapore
       In	Singapore	since	1902,	Citi	has	built	     Management	Unit,	which	together	
       a formidable franchise serving the           manages up to US$1 trillion worth of
       needs	of	consumers,	corporates	and	          transactions a day.
       institutions,	and	emerging	as	a	leader	
       in all asset classes. Singapore is Citi’s    Singapore is also home to Citi’s
       South East Asia Pacific headquarters         International	Technology	Organisation,	
       for all its businesses as well as the        a global organisation that supports
       International headquarters for Global        Citi’s international consumer business.
       Wealth	Management	business.		                Singapore	is	the	global	headquarters,	
       Providing	employment	to	9,000	people	        with	additional	support	centres	in	China,	
       in	Singapore,	Citi	is	the	largest	banking	   India,	Philippines,	Malaysia	and	Hong	
       employer in Singapore and is constantly      Kong,	providing	application	development	
       voted the Employer of Choice by              and support services to more than 40
       graduating students.                         countries	and	50	businesses	globally.		
                                                    Citi Technology Infrastructure Asia Pacific
       SINGAPORE – KEy CENTRE OF                    is a diverse organisation that provides
       ExCELLENCE                                   and manages all forms of infrastructure
                                                    needs. The regional centre in Singapore
       Singapore	is	a	key	centre	of	excellence	     provides a full range of data centre
       and innovation for Citi and a strategic      services to multiple businesses within
       hub	for	its	regional	management,	            Citi.
       marketing,	operations	and	technology	
       expertise.		With	Citi’s	Asia	Pacific	        Further emphasising Singapore’s
       Operations	&	Technology	headquarters	        importance	to	Citi	was	the	November	
       based	in	Singapore,	almost	50%	of	its	       2007 announcement to commit S$220
       workforce	in	Singapore	is	responsible	       million in a new state-of-the-art and
       for	the	institution’s	local,	regional	and	   environmentally friendly office at Changi
       global operations and technology.            Business	Park.		The	new	buildings	will	
                                                    accommodate	all	of	Citi’s	operations,	
       Singapore hosts two of Citi’s state of the   technology and shared services
       art	regional	processing	and	data	centres,	   employees. The new premises will cater
       the Regional Service Centre for securities   for future business growth and increase
       and funds administration and the             in operations and technology functions
       award-winning Regional Cash Process          into Singapore.

Deutsche Bank’s Presence

       Deutsche	Bank	first	established	a	            Singapore	is	also	a	key	market	for	the	
       presence in Singapore in 1972.                Bank’s	Private	Wealth	Management	and	
       Employing	more	than	2,100	staff,	             Asset	Management	businesses,	whose	
       Singapore	is	one	of	the	Bank’s	major	         clients	enjoy	access	to	Deutsche’s	global	
       hubs	in	Asia	Pacific,	and	is	the	regional	    resources	and	investment	expertise.	With	
       headquarters for business lines including     a strong on-shore presence around the
       Global	Markets,	Private	Wealth	               region,	the	Private	Wealth	Management	
       Management,	Asset	Management	and	             division recorded 19% growth in
       Global	Transaction	Banking.	Singapore	        invested assets in Asia Pacific in 2007
       is also the regional head office for a        and manages EUR 23bn on behalf of
       number	of	infrastructure	functions,	          clients in the region.
       including Global Technology and
       Operations	(IT)	and	Finance,	and	the	         Given that Singapore is a major
       location	for	the	Deutsche	Knowledge	          global and regional hub for a number
       Institute,	a	collaboration	with	INSEAD,	      of business lines it follows that
       which	was	launched	in	March	2008	to	          Singapore has been chosen as a major
       deliver employee development programs         infrastructure	hub	for	Deutsche	Bank.	
       for	Deutsche	Bank	employees	across	the	       Of	these,	the	Bank’s	Group	Technology	
       Asia-Pacific region.                          and Operations function is the largest
                                                     -	servicing	is	17	markets	around	Asia	
       The	Global	Markets	business	in	               Pacific from Singapore.
       Singapore	–	which	includes	sales,	trading	
       and	research	for	foreign	exchange,	           Key	factors	in	choosing	Singapore	as	
       equities,	interest	rates,	credit,	and	        a hub for operations include reliability
       derivatives	–	occupies	the	largest	trading	   of	infrastructure,	strong	government	
       floor	of	any	foreign	investment	bank	in	      and	industry	dialogue,	low	country	
       the	city	state,	and	is	the	centerpiece	of	    risk,	access	to	a	skilled	workforce,	an	
       Deutsche	Bank’s	presence	in	one	of	its	       accommodative	immigration	policy,	and	
       newest buildings at One Raffles Quay.         other	factors	surrounding	livability	–	
                                                     such	as	good	schools,	easy	integration	
       It	is	from	here	that	Deutsche	Bank	           into society given English is an official
       facilitates	liquidity	flows	to	and/or	on	     language,	and	Singapore’s	central	
       behalf of many of Asia’s governments          location in South-East Asia.
       and leading companies. The Singapore
       office is also a centre of structuring        Singapore’s pro-business development
       excellence,	in	which	the	Bank	seeks	to	       policies have been of particular
       innovate across a range of asset classes      benefit	to	Deutsche	Bank	in	looking	
       in order to help further develop capital      to strengthen its operations hub.
       markets	in	multiple	countries	across	the	     For	example,	the	Bank	has	now	
       region.                                       has a number of its regional data-

       center	facilities	in	Singapore	–	made	        international technology firms have also
       possible by the strong engagement of          based themselves in Singapore means
       government	bodies	and	regulators,	as	         that	our	operations	team	has	quick	and	
       well as Singapore’s robust technology         efficient	access	to	its	service	providers,	
       infrastructure. The fact that multiple        which is very favourable.

Standard Chartered: Leading the Way in Singapore
       Standard	Chartered	Bank	will	celebrate	       Wholesale Banking in Singapore
       150	years	in	Singapore	next	year,	having	     provides corporate and institutional
       opened	its	first	branch	in	1859.		The	        clients	with	services	in	trade	finance,	
       Bank’s	long-standing	commitment	to	           cash	management,	lending,	securities	
       Singapore is underlined by the fact that      services,	fixed	income,	equities,	
       the	global	businesses	for	Wholesale	          commodities,	debt	capital	markets	and	
       Banking,	Consumer	Banking,	Private	           corporate finance.
       Banking	and	Technology	and	Operations	
       are all managed out of there.                 Consumer Banking in Singapore
       Today,	Standard	Chartered	employs	            offers an array of services including
       almost	5,000	people	in	Singapore.		           credit	cards,	personal	loans,	mortgages,	
       Business	momentum	is	strong,	both	            deposit	taking	and	wealth	management	
       locally	and	across	the	Bank’s	footprint,	     to individuals and small to medium sized
       and robust growth is projected to             enterprises.		The	Bank	has	18	branches	
       continue	in	the	next	five	years.		Standard	   across	the	island,	and	five	Priority	
       Chartered	is	investing	a	total	of	SGD	1	      Banking	Centres.		Standard	Chartered	
       billion in relocation and consolidation       is	the	only	international	bank	to	offer	
       projects to accommodate steady                NETS	service,	giving	its	customers	access	
       headcount growth until 2010. The              to	EFTPOS	at	over	17,000	outlets	island	
       investment will go towards a new head         wide.
       office in the Marina Bay Financial Centre
       (MBFC)	and	new	campus	style	premises	         The	Bank	is	Singapore’s	leading	
       at	Changi	Business	Park.		Standard	           international	SME	Bank,	and	recently	
       Chartered	will	occupy	in	excess	of	           launched	the	Standard	Chartered-Dun	&	
       500,000	square	feet	of	the	MBFC	office,	      Bradstreet	Top	100	SMEs	Award,	which	
       which will have panoramic views of            recognises companies with an annual
       Marina Bay and a dealing room spanning        turnover of less than S$40 million.
       several	floors.		A	key	feature	of	the	
       Changi	Business	Park	is	a	30,000	square	
       feet	Global	Learning	Centre,	which	will	
       be	a	global	hub	for	the	Bank’s	learning	
       and development programmes.

Standard Chartered Private Banking          Our community
offers clients the powerful combination     Standard	Chartered	Bank	moved	into	
of	Standard	Chartered’s	growth	market	      Singapore	150	years	ago.		It	remains	
network	with	the	newly	integrated	          a	wonderfully	welcoming	location,	
capabilities	of	American	Express	           offering employees an outstanding
Private	Bank.		The	Bank	launched	its	       environment with great educational
Private	Banking	global	headquarters	        facilities	and	social	amenities.		The	Bank	
in	Singapore	in	May	2007,	extending	        places great importance on contributing
the	Banks	commitment	to	serving	the	        to	this	community,	by	providing	staff	
growing demand for more specialised         with paid volunteering leave to support
products and services for high net worth    organisations such as the Movement for
individuals.		The	Private	Bank	currently	   the	Intellectually	Disabled	of	Singapore.		
has	280	bankers	globally,	100	of	these	     Standard Chartered also sponsors the
are based in Singapore.                     Singapore	Marathon,	which	returns	for	
                                            the	seventh	year	on	December	7,	2008.		

2007 Singapore Asset
        Management Industry Survey

           The Monetary Authority of Singapore conducted its
           annual survey of the Singapore asset management
           industry,	 for	 the	 year	 ending	 31	 Dec	 2007.	 The	
           survey covered those financial institutions with asset
           management activities in Singapore who responded
           to our survey questionnaire.1

                      		Financial	Institutions	comprise	Banks,	Finance	and	Treasury	Centres,	
                        Capital	Markets	Services	licensees,	Financial	Advisers,	Operational	Head-
                        quarters	and	exempt	entities.


     1.1		 As	at	end-2007,	total	assets	managed	by	Singapore-based	asset	 managers	
           showed	a	strong	32%	growth	rate	to	reach	S$1.173	trillion	(approximately	
           US$814	billion),	compared	to	S$891	billion	as	at	end-2006.	This	is	the	seventh	
           consecutive year of double-digit year-on-year growth in total AUM registered by
           Singapore-based asset managers.

                                         Chart 1: Growth of Assets under Management
                                               Assets Under Management (AUM)


                                1000                                       891

                                 800                               720
                   S$ Billion



                                       2002	     2003	     2004	   2005	   2006	      2007

                                Discretionary	      Advisory

     2        SOURCES OF FUNDS

     2.1      The asset management industry in Singapore continued to be international in
              character	with	about	86%	of	total	AUM	sourced	from	outside	Singapore.	The	
              Asia-Pacific	region	remained	a	key	source	of	mandates	for	Singapore-based	
              asset managers and represented 44% of total funds sourced in 2007. Funds
              sourced	from	other	major	markets	such	as	the	US	and	Europe	accounted	for	
              about 36% of the total funds under management. Funds sourced from all
              markets	in	general	had	shown	strong	growth,	including	South	Asia	and	the	
              Middle East.

     2.2		    In	terms	of	investor	base,	43%	of	the	total	funds	managed	were	sourced	
              from	institutional	investors	such	as	pension	funds,	endowments,	foundations,	
              corporates	and	financial	institutions,	with	the	rest	of	the	funds	sourced	from	
              non-institutional investors.

                                               Chart 2: Sources of Funds by Region, 2007
                                                        Major Markets by Region

                                                                                       Asia Pacific 44%

                                                                                       Europe	     25%

                                                                                       US          11%

                                                                                       Others      20%


3.1    The assets managed by Singapore-based asset managers retained a strong
      bias	towards	equities,	accounting	for	57%	of	total	AUM,	a	2%	rise	from	2006.	
      Allocations towards alternative investments also rose by 2% to 12% whilst
      allocations	to	bonds	saw	a	decline	of	5%	to	12%.

                                             Chart 3: Investment of Funds by Instruments
                                                        Investment by Asset Class
                                 60          57


          % Share of Total AUM


                                 20                  17
                                                           12                  12 12              12
                                 10                               6   7

           	                          Equities	       Bonds	     CIS/Funds	   Cash/Money	   Alternatives

                                 2006                     2007

3.2   Singapore continues to be the centre for the management of regional
      investments.	In	2007,	investments	into	the	Asia-Pacific	region	accounted	for	
      57%	of	the	total	AUM	in	Singapore.	This	reflected	investors’	continued	interest	
      in	Asian	investment	opportunities.	In	contrast,	the	proportion	of	investments	
      allocated to European and US assets decreased and accounted for 11% and
      3% of the total AUM respectively.

                                                    Chart 4: Investment of Funds by Region
                                                   Key Investment Destinations: 2006 vs 2007


                                                    57% 57%
                      % Share of Total AUM



                                             20%                     12% 11%
                                                     Asia Pacific          Europe           US

                                              2006                  2007


     4.1		   The	asset	management	industry	has	expanded	in	size,	diversity	and	scope.	
             Comprising	a	good	mix	of	both	international	and	local	asset	managers,	these	
             managers offer a wide range of products and strategies to clients from all over
             the	world.	They	use	Singapore	as	a	key	hub	for	the	management	of	regional	
             investments as well as an efficient base to raise assets from the region and
             service regional clients.

     4.2		   The	number	of	bulge-bracket	asset	managers	managing	more	than	S$5	billion	
             in discretionary assets in 2007 increased by 23% as they deepen and broaden
             further	their	asset	management	activities	in	Singapore.	These	bulge-bracket	
             asset managers continue to drive the growth in the asset management industry
             and accounted for 47% of the total AUM in Singapore.

     4.3		   Singapore	has,	over	the	past	few	years,	seen	a	healthy	growth	in	the	alternative	
             investment	management	industry,	which	comprises	hedge	fund,	private	equity	
             and real estate managers. These alternative investment managers add to the
             diversity	of	the	industry.	In	particular,	the	number	of	hedge	fund	managers	in	
             Singapore	had	seen	a	strong	increase	by	more	than	50%	to	almost	300.	Total	
             assets	managed	by	these	hedge	fund	managers	doubled	to	close	to	S$80	billion	
             (approximately	US$55	billion)	as	at	end-2007.	The	profiles	and	investment	
             strategies of the hedge fund managers in Singapore are highly varied and

     4.4     In tandem with the overall growth of both the traditional and alternative
             investment	management	industry,	there	has	been	an	increase	in	the	number	of	
             ancillary	service	providers	such	as	fund	administrators	and	prime	brokers	which	
             have established a presence in Singapore.


5.1		    The	number	of	investment	professionals	employed	within	the	industry	rose	
         by	22%	to	reach	2,185	in	2007.	Investment	professionals	comprise	portfolio	
         managers,	investment	analysts,	traders,	asset	allocators	and	economists.	All	
         categories of investment professionals had seen a healthy growth over the
         last	two	years.	Portfolio	managers	continue	to	account	for	the	bulk	of	the	
         investment professionals in Singapore.

                                Chart 5: Investment Professionals
                              Composition of Investment Professionals

                       2000                                47                     259

                                    36                    186
                       1500                                                       745
                                   158                    619
                       1000        434

                        500                               934

                   	               2005	                  2006	                   2007

                         Portfolio managers                     Investment analysts

                         Traders                                Asset allocators and economists


6.1			 In	2007,	total	CIS	AUM	increased	by	30%	to	reach	S$39	billion	(approximately	
       US$27	billion).	Accounting	for	46%	of	the	total	number	of	CIS,	CPF-approved	
       CIS	continued	to	represent	the	majority	of	CIS	investments,	contributing	to	
       67% of total CIS AUM.

                        Table 1: Breakdown of CIS by CPFIS & Non-CPFIS

                                                  As at end-2006                             As at end-2007
                                           No.	         AUM	(S$	billion)	             No.	        AUM	(S$	billion)
 CIS under CPFIS                           217                    21                  162               26
 CIS	under	Non-CPFIS	                      157	                   9                   187	              13
 Total                                     374                    30                  349               39

     6.2	    	Investments	into	Fund-of-Funds,	Balanced	Funds,	Equity	Funds	and	Money	
             Market	Funds	CIS	experienced	growth	ranging	from	45%	to	80%	while	
             allocation	to	Capital	Guaranteed/Protected	Funds	CIS	showed	a	decline	of	more	
             than 40%.

     6.3		   In	terms	of	geographical	allocation,	Asian	markets	including	Singapore	
             accounted	for	71%	of	CIS	investments	in	2007,	compared	to	61%	as	at	end-
             2006.	This	reflected	a	more	bullish	investor	outlook	for	Asia.

                           Chart 6a: Investment of CIS by Region, 2006

                                                                     Asia        61%

                                                                     US	          8%

                                                                     Europe      22%

                                                                     Others       9%

                          Chart 6b: Investment of CIS by Region, 2007

                                                                     Asia        71%

                                                                     US           6%

                                                                     Europe      16%

                                                                     Others       7%

                                Prepared by Monetary Authority of Singapore, July 2008.

                                   S UB- COMMI T T E E RE P ORT S


Chairman                                  endorsed that the current practice as
Wong Ban Suan,	DBS	Bank                   indicated	in	the	Blue	Book	should	stay.	

Members                                   A complete update of the list of test
Guan Yeow Kwang,	Mizuho	Bank              questionnaires	for	the	Blue	Book	
Goh Say Jim,	ICAP                         examination	has	also	been	completed.	
Jituma Thanyodom,	JP	Morgan               This is to ensure that the questionnaires
Alex Tan,	Deutsche	Bank                   are in line with the latest version of the
Andrew Ng,	DBS	Bank                       Blue	Book.

The	Market	Practice	Sub-committee	        We	conducted	a	full	day	Blue	Book	
undertook	the	following	initiatives	in	   module for all the interns during the
2008:                                     Pre-Internship Programme. This was to
                                          prepare them with the fundamentals of
1.	Review	and	Update	of	the	Blue	Book     global	markets	before	they	embark	on	
2. Review and update list of test         their	attachments	with	the	various	banks	
   questionnaires	for	the	Blue	Book	      in Singapore.
   Examinations	conducted	by	IBF.
3.	Support	the	Manpower	Development	
   Internship Program.

The committee did a review of the
Blue	Book,	in	particular	Section	4.2	
on	unforeseen	market	holidays.	This	
was precipitated by the ACI and the
NY	FX	Committee.	It	was	unanimously	


     Chairman                                      of	the	financial	markets.	At	the	end	
     Guan Yeow Kwang, Mizuho Corporate             of the program about two dozen of
     Bank	Ltd                                      selected participants were also offered
                                                   a two-month internship by leading
     Members                                       banks	and	financial	institutions.
     Ng Kwan Meng,	United	Overseas	Bank
     Joan Tay,	NUS	Business	School               •	 Career	talks	organised	by	the	
     Lee Chee Pin,	Bank	of	America                  Institute	of	Banking	&	Finance	at	local	
     Arie Adler,	UBS	                               universities	in	August	2008
     Vikas Suri,	Standard	Chartered	Bank
                                                 •	 Continual	calibration	of	competency	
     A	tight	labour	market	is	one	of	the	key	       standards under the auspices of
     challenges	financial	markets	the	world	        the Financial Industry Competency
     over had to live with in the past few          Standards
     years. The mission of the Manpower
     Development	Sub-committee	is	therefore	     In the remaining period of this sub-
     to support the growth of the talent pool    committee’s	term,	we	aim	to	broaden	
     in Singapore and help elevate the quality   our co-operation with our partners.
     and	development	our	financial	markets	      For	instance,	the	pilot	programme	for	
     professionals.                              undergraduates	would	be	expanded	
                                                 to cater to overwhelming demands.
     Much	of	the	sub-committee’s	work	was	       We	will	also	explore	the	feasibility	of	
     carried out in collaboration with our       facilitating a forum for HR professionals
     valued industry partners. They include:     so that human capital issues affecting
                                                 the	financial	markets	may	be	dealt	with	
     •	 A	pilot	programme	with	the	NUS	          more effectively.
        Business	School	in	June	2008	under	
        which industry practitioners pooled      Finally,	we	wish	to	record	our	sincere	
        their resources to conduct a two-        appreciation to our industry partners
        week	Treasury	Foundation	Course	         for their wonderful support and
        for undergraduates of the School.        cooperation.	We	also	wish	to	thank	
        The multi-faceted program aimed          David	Wong	for	his	able	and	dedicated	
        to attract talents to the industry by    leadership in the sub-committee for the
        offering aspiring entrants practical     past four years.
        exposures	to	the	different	aspects	


Chairman                                   on unconfirmed trades. This survey
David Dredge,	RBS                          clearly showed the positive impact that
                                           standardised documentation has had
Members                                    for	NDF	transactions,	and	it	is	hoped	
Alok Sharma,	Bank	of	America               that the same will result for these other
Mack Kazi,	RBS                             non-deliverable	products.	We	hope	
Bryan Yap,	Deutsche	Bank                   to continue the efforts to standardise
Charlie Wang,	Standard	Chartered	Bank      documentation across other products
Ed Donald,	Tullets	Prebon                  and asset classes it the continuing effort
Sam Phoen,	JL	Capital                      to deepen liquidity and encourage
                                           participation in newly developing
The	Market	Development	Sub-                markets	and	opportunities.
Committee	sets	as	its	task	to	improve	
and	enhance	the	financial	market	          In our efforts to broaden our scope
activities in Singapore. It has a long     beyond	the	traditional	FX	markets,	the	
standing base in development of the FX     committee	was	involved	in	working	
markets,	and	has	become	increasingly	      with MAS and SGX on the first listing of
active	in	expanding	activity	across	       commodities warrants on the Singapore
multiple other asset classes.              Stock	Exchange.	

It has been a particularly complicated     Current	projects	are	in	the	works	
period	in	financial	markets,	and	the	      specifically relevant to some of the
Market	Development	Sub-Committee	          complexities	around	counterparty	
has,	as	usual,	been	right	in	the	thick	    risks	in	the	markets	today.	The	
of things. The committee’s efforts in      committee continues to engage in
working	with	EMTA	proved	particularly	     discussions around the utilisation of
timely	this	year	as	offshore	NDF	fixing	   exchange	traded,	or	clearing	house,	
mechanisms were put in place for the       methodologies as a means to mitigate
VND	and	PKR	just	prior	to	onshore	         some	of	these	complexities.	Also,	we	
market	disruption	events.                  are actively considering how to further
                                           broaden	market	access	to	local	currency	
The committee has been actively            fixed	income	markets	through	offshore	
involved,	in	coordination	with	the	        traded local currency bond products.
Operations	Sub-Committee,	in	working	
with	ISDA	and	EMTA	on	standardising	       It has no doubt been a unique period in
documentation for other non-deliverable    the financial industry. Our hope is that
market	products	(NDIRS,	NDS,	NDO).	        Singapore builds upon its stature as the
The importance of this effort came to      center	for	financial	market	liquidity	and	
light	on	the	back	of	the	survey	done	      activity in the region.


     Chairman                                      The main achievement and initiatives
     Bill Chua,	United	Overseas	Bank               being	taken	to	date	by	Operations	sub-
                                                   committee are as follows:-
     Sally Poh,	Clearing	&	Payment	Services	       1) Survey on unconfirmed Treasury-
     Pte	Ltd                                          related trades in Singapore
                                                      The survey was successfully
     Members                                          conducted in September 2007 and
     Peh Bee Leng,	RBS/ABN	AMRO	                      the results were disseminated to
     Paul Tan,	Bank	of	Tokyo-Mitsubishi	UFJ	          members. The results provided the
     Garry Hammond,	Barclays	Capital	                 basis	for	further	work	on:-
     Nagaraja Shenoy,	Citigroup
     Ed Bosson,	Credit	Suisse	 	                      a) Standardisation of Derivatives
     Jimmy Pang,	DBS	Bank	Ltd	                           paper confirmations
     Shirley Yeo,	Deutsche	Bank	      	                  The committee is collaborating
     Sin Yoke Ling,	HSBC	                                with	ISDA	Singapore	in	seeking	
     Lee Wah Seng,	Morgan	Stanley	 	                     members’ views to develop
     Joey Lam,	OCBC	                                     standard confirmation templates
     Mona Cheah,	UBS	AG	 	            	                  for	NDS	and	cross-currency	pairs	
     Lim Say Tai,	UOB		                                  concerning Asian currencies.
                                                         With	standardised	templates,	the	
     The	Operations	Sub-Committee	works	                 members will not need to develop
     closely with the Operations Standing                or	negotiate	extensively	on	each		
     Sub-Committee of The Association of                 other’s confirmation leading to
     Banks	in	Singapore	(ABS).	The	objectives	           much streamlining and improving
     of the Operations Sub-Committee are to:             productivity.

     •	 Establish	and	promote	standards	              b) Master Confirmation
        that will facilitate straight-through            Agreement (MCA) for NDFs,
        processing in the settlement and                 NDOs, NDS, etc.
        payment of wholesale transactions;               To improve efficiency and reduce
     •	 Establish	and	promote	best	practices	to	         backlog	of	unconfirmed	trades,	
        prevent and solve operational issues;            the committee is encouraging
     •	 Serve	as	a	forum	for	the	exchange	               members to enter into MCA by
        of	ideas	and	to	explore	areas	of	co-             using	existing	EMTA	templates	as	
        operation among industry players;                well	as	collaborating	with	ISDA	
     •	 Provide	a	platform	to	co-ordinate	               to develop other applicable MCA
        industry actions in the event of                 templates where necessary. This
        any disruption to settlement of                  would	enable	member	banks	
        transactions; and                                to move from long form paper
     •	 Continue	to	forge	closer	links	with	             confirmations to electronic
        other	committees	involved	in	Banking/            confirmations and increase the
        Treasury/Capital	Markets	Settlements	            efficiency of settlement.
        such	as	ABS/ACI/ISDA
2) Operational Issues                           3) Dealer’s Mandate
   Member	banks	continue	to	share	on	              The	committee	is	working	on	the	
   their	“Best	Practices	and	Controls”	            best	market	practices	regarding	
   that	will	mitigate	banks’	fraudulent	           mandates received from customers
   transactions	and	our	operational	risks.	
                                          	        which	require	banks	to	ensure	
                                                   compliance with the customer’s self-
                                                   imposed dealing restrictions.


Chairman                                        use	in	the	market.	Quarterly	calls	were	
Mayur Ghelani,	Deutsche	Bank                    arranged to give a chance for each
                                                center to update all on projects being
Members                                         undertaken	and	possibly	to	discuss	
Brad Levitt,		Standard	Chartered	Bank           issues that might require cooperation
Srinivasa Vasan Varathan,	BNP	Paribas           across all committees.
Goetz Eggelhoefer,	The	Rohatyn	Group
Celeste Cheo,	Monetary	Authority	of	            The big project for the Sub-Committee
Singapore                                       for	2008	was	the	Biennial	publication	
                                                2007-08.	The	focus	for	this	year’s	
The objectives of the Public Relations          report	has	been	on	Asia’s	New	Nexus	
Sub-Committee are to:                           –	Singapore	as	a	Global	City	as	well	
                                                as	on	the	experience	pf	bulge	bracket	
•	 Promote	the	objectives	of	the	SFEMC          firms in using Singapore an Operations
•	 To	facilitate	and	liaise	with	industry	      Hub supplemented with the 2007 Asset
   bodies	such	as	the	Institute	of	Banking	     Management Survey on the growth
   and	Finance,	the	Association	of	             of the asset management business in
   Banks	in	Singapore,	the	Investment	          Singapore.
   Management Association of Singapore
   on the branding of SFEMC and to
   highlights	work	and	projects	being	
   undertaken	by	the	various	sub-
•	 To	liaise	with	similar	market	
   committees globally namely the
   London,	Tokyo,	Hong	Kong	and	New	
   York	committees
•	 Prepare	the	Biennial	Report	2007-08

The PR Sub-Committee have been
developing closer relationships with
the	New	York	and	London	market	
                                              Deputy	Managing	Director,	MAS,	Mr	Ong	Chong	Tee	
committees in recommending                    with	Chairman,	SFEMC,	Mr	Loh	Boon	Chye.
appropriate standards and codes for

of the Singapore Foreign Exchange Market Committee


	                        2	                  3	                        4	                   5	

6	                       7	                  8	                        9

                         10                  11                     12                     13

     Chairman                          Members
     1)	 Loh	Boon	Chye                 7)	 Bart	J.	Broadman                  15)	 Goh	Say	Jim
     	   Deutsche	Bank	AG                  Alphadyne Asset Management        	    ICAP	AP	Singapore	Pte	Ltd
                                           Pte	Ltd
     Market Development                                                      16)	 James	Loh
     Sub-comm Head                     8)	   Lee	Chee	Pin                    	    JL	Capital	Pte	Ltd	
     2)	 David	Dredge                  	     Bank	of	America,	NA
     	   ABN	AMRO	Bank	NV                                                    17)	 Will	Shropshire
                                       9)	   Takashi	Usami                   	    JP	Morgan	(S.E.A)	Limited
     Market Practices                  	     The	Bank	of	Tokyo-Mitsubishi	
     Sub-comm Head                           UFJ,	Ltd                        18)	 Jai	Rajpal
     3)	 Wong	Ban	Suan                 	     United	Overseas	Bank	           	    Lehman	Brothers	
     	   DBS	Bank
                                       10)	 Ivan	Ritossa                     19)	 Leonard	Feder
     Public Relations                       Barclays Capital                 	    Standard	Chartered	Bank
     Sub-comm Head
     4)	 Mayur	Ghelani                 11)	 Srinivasa	Vasan	Varathan         20)	 Yukio	Otsu
     	    Deutsche	Bank	AG             	    BNP	Paribas                      	    Sumitomo	Mitsui	Banking	
     Market Operations                 12)	 Nadir	Mahmud
     Sub-comm Head                     	    Citibank                         21)	 Goetz	Eggelhoefer
     5)	 Bill	Chua                                                                The Rohatyn Group
     	   United	Overseas	Bank	Ltd	     13)	 David	Lau
                                       	    Galleon	Asia	Pte	Ltd	            22)	 Ng	Kwan	Meng
     Manpower Development                                                    	    United	Overseas	Bank	Ltd
     Sub-comm Head                     14)	 Andrew	Ng	Wai	Hung
     6)	 Guan	Yeow	Kwang               	    DBS	Bank	
     	   Mizuho	Corporate	Bank,	Ltd	

14	                    15	           16	                  17	   18

19                     20            21                   22

23	                    24	           25	                  26	   27

                             Head of Secretariat
23)	 Ong	Chong	Tee           28)	 Leong	Whye	Wah
     Monetary Authority of        Monetary Authority of
     Singapore                    Singapore

24)	 Ng	Nam	Sin              Secretary
                                                          28	   29
     Monetary Authority of   29)	 Wan	Howe	Chung
     Singapore                    Monetary Authority of
25)	 Lee	Chuan	Teck
     Monetary Authority of

26)	 Kola	Luu
     Monetary Authority of

27)	 Cheryl	Tan
     Monetary Authority of


2005/2006		   Asia:	Shaping	the	Global	Economic	and	Investment	Landscape
              The Return of Asia
	             Asia’s	Financial	Markets	–	The	Challenges	Ahead
2003/2004	    Strategic	and	Innovative	Growth
	             Market	Trends	in	the	Foreign	Exchange	Industry
2001          Behavioural Finance
	             Liquidity	Black	Holes
2000          Singapore Transforms Itself
1999          Summary of Financial Sector Reforms in Singapore
              Views from the Ground
1998	         Future	Trends	of	Global	Interbank	Payment	and	Settlement	Systems
1997	         Survey	of	Corporate	Risk	Management	Practices
1996	         Regional	Currency	and	Debt	Markets	–	An	Update
1995	         Singapore,	Partner	in	Growth	of	the	Region
1994	         Singapore	–	A	Centre	for	Financial	Intermediation	and	Risk	Management
              The Challenges of the Future
1993	         25	Years	of	Asian	Currency	Unit
	             Evolution	of	Price	Risk	Management	in	the	Dealing	Room
1992          Environmental Scan
	             Future	Directions	and	Opportunities
1991          Beneath the Tip of the Iceberg
              Singapore: The Financial Centre Riding the Tides of Global Change
1990	         A	Developmental	Overview	of	the	Singapore	Chapter	of	the	International	Society	
              of	Financial	Analysts	(ISFA)
	             Some	Major	Developments	in	Singapore’s	Financial	Markets	in	the	1980s
	             Survey	of	Off-Balance	Sheet	Products	and	Options	Volumes	in	1989
              Technical Analysis Comes of Age in Singapore
	             The	Growth	of	Merchant	Banks	in	Singapore
	             Tomorrow’s	Financial	Market	–	Looking	at	Changes	Around	Singapore	in	the	
1989	         Cost	Comparison:	A	Comparative	Review	of	Infrastructural	and	Manpower	Support
	             Manpower	Survey:	Survey	of	Manpower	and	Training	Needs	in	Bank	Treasuries
1988	         Perspective:	Opportunities	for	OHQs
	             Perspectives:	Outlook	for	Singapore	as	an	International	Financial	Centre
1987	         Development	of	Capital	Adequacy	Guidelines	and	Its	Impact	on	Banking	
	             Manpower	Development	in	the	Foreign	Exchange	Market
              Securitisation in Singapore
	             The	Singapore	Government	Securities	Market


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