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PR Newswire
29-10-2011, 06:01 PM
Singapore is a unique country. Though growth will "slow", people will still be out there spending freely on their iPhones, cars and holiday packages. 
The Straits Times
Oct 29, 2011
Expect growth to slow, says Tharman
Regional banks 'must be anchors of stability to limit Western contagion'
By Robin Chan
DEPUTY Prime Minister Tharman Shanmugaratnam said last night that steps announced to resolve the euro zone debt crisis mark only the start of Europe's path to stability and economic recovery.
Global growth will slow, and Asia will not be insulated from the frailties of advanced economies, as they still account for most final demand for goods made and exported from the region, he said.
Asia could also suffer from a pull-back in cross-border lending by foreign banks and a tightening of trade finance.
'We must therefore expect a period of uncertainty and sub-par growth both globally and in Asia,' he said.
Mr Tharman, who is also Finance Minister and Manpower Minister, was speaking at the 50th anniversary celebration dinner of RHB Bank Singapore at the Shangri-La Hotel last night.
European leaders reached a deal on Thursday to bolster the heft of their rescue fund to €1 trillion (S$1.76 trillion) and persuaded banks and insurers to take a 50 per cent loss on Greek debt.
Measures also included a recapitalisation of European banks and a potentially bigger role for the International Monetary Fund in boosting the bailout fund.
Mr Tharman, who chairs the International Monetary and Finance Committee of the IMF, said: 'Europe's leaders are ploughing forward in a challenging economic and political environment.
'The steps they have announced earlier this week have provided some measure of assurance to the markets, although the details have yet to be negotiated and their implementation not yet certain.
'We should be mindful too that even if successfully implemented, the measures mark only the beginning of Europe's path to stability and economic recovery.'
While Asia is not buffered from the global slowdown, regional banks have the opportunity to play a role in strengthening intra-Asian growth and to lessen the impact of contagion from the West, he said.
'Enhanced regional trade and financial integration will enable Asia to sustain the growth of regional demand, and to efficiently channel surplus savings to where they are needed most,' he said.
'Regional banks must also continue to play a role as anchors of stability. They act as reliable, steadfast counterparties among banks and for borrowers mitigating the effects of contagion from abroad.
'Apart from servicing trade financing needs, they can continue to satisfy the demand for credit generated by the region's strong consumption and investment spending.'
As RHB marked 50 years in Singapore, Mr Tharman said it was 'no small matter in the light of the upheavals the region has experienced in the last half century'.
'(RHB) has successfully navigated the ups and downs of the regional finance, and grown its presence,' he said.
RHB Bank, Malaysia's fifth-largest bank, has injected $350 million into its Singapore operations, bringing its total capital commitment here to $620 million. Headcount is 460. The bank established a presence here in 1961.
RHB Bank chairman Azlan Zainol told The Straits Times that the bank is aiming for 'controlled growth', even as it intends to aggressively market its services to customers in Singapore to increase its market share across consumer, corporate and treasury services.
Its Singapore office - which accounts for 90 per cent of its international business - will therefore increase headcount, especially in marketing, he said.
Beyond that, the bank will be pushing into Islamic finance in the next six months and try to grab a slice of the lucrative private wealth management pie here.
It opened its first premier banking centre at Cecil Street on Thursday.
'We feel that there is huge potential in Singapore. We know Singapore plays a strong leadership role among the financial centres in the world. We plan to put in more effort and focus into Singapore to make sure we remain competitive... We want to make ourselves more relevant over the next 50 years.'
chanckr@sph.com.sg
The Straits Times
Oct 29, 2011
Expect growth to slow, says Tharman
Regional banks 'must be anchors of stability to limit Western contagion'
By Robin Chan
DEPUTY Prime Minister Tharman Shanmugaratnam said last night that steps announced to resolve the euro zone debt crisis mark only the start of Europe's path to stability and economic recovery.
Global growth will slow, and Asia will not be insulated from the frailties of advanced economies, as they still account for most final demand for goods made and exported from the region, he said.
Asia could also suffer from a pull-back in cross-border lending by foreign banks and a tightening of trade finance.
'We must therefore expect a period of uncertainty and sub-par growth both globally and in Asia,' he said.
Mr Tharman, who is also Finance Minister and Manpower Minister, was speaking at the 50th anniversary celebration dinner of RHB Bank Singapore at the Shangri-La Hotel last night.
European leaders reached a deal on Thursday to bolster the heft of their rescue fund to €1 trillion (S$1.76 trillion) and persuaded banks and insurers to take a 50 per cent loss on Greek debt.
Measures also included a recapitalisation of European banks and a potentially bigger role for the International Monetary Fund in boosting the bailout fund.
Mr Tharman, who chairs the International Monetary and Finance Committee of the IMF, said: 'Europe's leaders are ploughing forward in a challenging economic and political environment.
'The steps they have announced earlier this week have provided some measure of assurance to the markets, although the details have yet to be negotiated and their implementation not yet certain.
'We should be mindful too that even if successfully implemented, the measures mark only the beginning of Europe's path to stability and economic recovery.'
While Asia is not buffered from the global slowdown, regional banks have the opportunity to play a role in strengthening intra-Asian growth and to lessen the impact of contagion from the West, he said.
'Enhanced regional trade and financial integration will enable Asia to sustain the growth of regional demand, and to efficiently channel surplus savings to where they are needed most,' he said.
'Regional banks must also continue to play a role as anchors of stability. They act as reliable, steadfast counterparties among banks and for borrowers mitigating the effects of contagion from abroad.
'Apart from servicing trade financing needs, they can continue to satisfy the demand for credit generated by the region's strong consumption and investment spending.'
As RHB marked 50 years in Singapore, Mr Tharman said it was 'no small matter in the light of the upheavals the region has experienced in the last half century'.
'(RHB) has successfully navigated the ups and downs of the regional finance, and grown its presence,' he said.
RHB Bank, Malaysia's fifth-largest bank, has injected $350 million into its Singapore operations, bringing its total capital commitment here to $620 million. Headcount is 460. The bank established a presence here in 1961.
RHB Bank chairman Azlan Zainol told The Straits Times that the bank is aiming for 'controlled growth', even as it intends to aggressively market its services to customers in Singapore to increase its market share across consumer, corporate and treasury services.
Its Singapore office - which accounts for 90 per cent of its international business - will therefore increase headcount, especially in marketing, he said.
Beyond that, the bank will be pushing into Islamic finance in the next six months and try to grab a slice of the lucrative private wealth management pie here.
It opened its first premier banking centre at Cecil Street on Thursday.
'We feel that there is huge potential in Singapore. We know Singapore plays a strong leadership role among the financial centres in the world. We plan to put in more effort and focus into Singapore to make sure we remain competitive... We want to make ourselves more relevant over the next 50 years.'
chanckr@sph.com.sg
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