Singapore, 16 Dec 2004...The launch of EMEAP's  Asian Bond Fund 2 (ABF2), comprising a Singapore-domiciled Pan-Asian Bond Index Fund (PAIF) and eight country sub-funds marks a further chapter in the development of Asia's local currency bond markets.  Such regional initiatives complement our own bond market development efforts and add to the significant strides made in the growth of our domestic bond market and fixed income fund management activities. 

2. MAS supports the management of ABF 2 by the private sector as it will deepen the pool of Asian bond market expertise. EMEAP's work with a major index provider to develop a family of bond indices covering the eight EMEAP markets will also increase pricing transparency and investor familiarity with Asian bonds.

3. Mr. Koh Yong Guan, Managing Director, MAS, said "MAS is pleased to have worked with our fellow EMEAP central banks in the successful launch of ABF 2.  ABF 2 is a bold initiative in regional capital market collaboration.  Together with ABF1, it will draw greater investor awareness, including from outside Asia, to the investment opportunities in Asian bonds."

***