MAS: Annual report 2006 / 2007
CONTENTS
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TEAMWORK - Our Partners
SINGAPORE 2006 INTERNATIONAL MONETARY FUND AND WORLD BANK GROUP ANNUAL MEETINGS
WORKING WITH INDUSTRY
FINANCIAL COOPERATION
FINANCIAL COOPERATION 52
Working With Foreign Regulators 52
Participation In International Forums and Initiatives 53
Partnership With Toronto Centre (MAS-Toronto Centre Regional  
  Leadership Programme for Securities Regulators 54
Regional Training Initiative 54
Financial Integration Initiatives 54
MAS and International Monetary Fund High-Level  
  Seminar On Crisis Prevention in Emerging Markets 55
Box 15 - Brunei-Singapore Currency Interchangeability  
  Agreement 40th Anniversary Celebrations 55
 

MAS and International Monetary Fund High-Level Seminar on Crisis Prevention in Emerging Markets
In July 2006, MAS and the International Monetary Fund (IMF) jointly hosted a high-level seminar on crisis prevention in emerging markets. Economists and senior policymakers from Asia, Latin America, Europe, the US and the IMF participated in this seminar. Participants were able to share their experiences and research findings ahead of the IMF-World Bank Annual Meetings held in September 2006 in Singapore.

Participants acknowledged that the increasing integration of markets had resulted in a more efficient allocation of savings and investment and new financial instruments had played a significant role in deepening markets and facilitating efficient risk transfers. However, in order to benefit from the fast pace of integration and new innovations, national authorities need to focus on managing risks and volatilities. The major challenge likely to confront emerging markets would be to understand the nature of crises in order to proactively adopt preemptive measures.

 

There was consensus that crisis prevention in emerging markets could be pursued on both the domestic and international levels and a sound macroeconomic framework with appropriate fiscal and monetary policies formed the core of crisis prevention measures. Participants also agreed that there was a need to establish sound micro-prudential policies and strengthen financial surveillance. As a safeguard against risks and vulnerabilities, emerging markets need to be supported by regional self-help mechanisms. In the East Asian financial sector, such mechanisms would include the ASEAN + 3 multilateral arrangements and the Chiang Mai Initiative.

IMF Managing Director Rodrigo De Rato with Minister for Education and Second Minister for Finance Tharman Shanmugaratnam.
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