Singapore affirmed its 2017 growth forecast of between 1 and 3 percent on Thursday, even as it turned slightly cautious on China's outlook a day after Moody's downgraded the rating of the world's second largest economy.The Southeast Asian city state reported a 2.7 percent year-on-year increase in first quarter gross domestic product, in line with Reuters projection, the Ministry of Trade and Industry (MTI) said.On a quarter-on-quarter basis, the economy contracted 1.3 percent, more than the 1 percent drop expected.The export-reliant country benefited from the general uptick in global demand, with shipments of electronic products leading the 15.2 percent year-on-year rise in non-oil domestic exports in the first quarter.Loh Khum Yean, Singapore's permanent secretary for trade and industry, said the better performance came on the back of improved growth prospects in advanced economies.However, he said rising anti-globalization sentiment and China's monetary conditions are key risks to watch.

Loh said barring the downside risks, Singapore's GDP growth is likely to come in higher than the 2 percent in 2016.The government also upgraded its export forecasts for 2017 to 4-6 percent from the previous flat to 2 percent.ANZ economist Ng Weiwen noted that the authorities have turned slightly cautious on China, which is one of Singapore's largest trading partners."Specifically, tighter monetary conditions in China amidst financial deleveraging potentially resulting in a steeper-than-intended pullback in credit and investment spending is being flagged as a potential downside risk in the MTI statement today versus stability in outlook for China in the [central bank's April Monetary Policy Statement]," he wrote in a note.Edward Robinson, chief economist at central bank Monetary Authority of Singapore, acknowledged that recent indicators in China "have slowed a little" but said the country is still on track to meet its growth target."Consensus hover around 6.5 percent and the consensus is reasonable at this stage.

It is difficult to strike the correct balance between paving back credit growth in the economy and ensure that financial conditions don't tighten so much so quickly that they [hurt] growth," he said at a media briefing on Thursday."The Chinese authorities are managing the trade-off quite well and efficiently.At this point, our baseline view is for growth to be around 6.5 percent growth trajectory."Follow CNBC International on Twitter and Facebook.The Honourable Chief Justice Sundaresh Menon,The Honourable Justice Lee Seiu Kin,Distinguished guests, ladies and gentlemen, good morning.And to all our foreign guests, a warm welcome to Singapore."The Geeks Shall Inherit the Earth” Technology is changing the way we live, work, and play.When the legal profession is organising a conference on technology, you know that something momentous is brewing!I congratulate the Singapore Academy of Law for its acumen in setting technology as the theme for its conference.A sector where I believe technology is going to be fundamentally transformative is financial services.

In fact, there is a new buzzword: “FinTech” – financial technologies or the integration of finance and technology.Two things are happening.First, non-financial players are using technology to offer innovative solutions that mirror the services traditionally offered by financial institutions (“FIs”).ethereal tutorial pdfIndeed, these non-financial firms look set to disrupt the financial industry.sms na bitcoinThe second thing that is happening is that FIs are fighting back.ethereum download blockchainLeveraging on their size and networks, FIs are using technology much more intensely to enhance their product offerings and service delivery.bitcoin meaning wikipediaWhat does all this mean?litecoin pool good

As a powerpoint slide used by a FinTech company in Silicon Valley rather immodestly proclaims: “the geeks shall inherit the earth!”.It is no doubt an exaggeration.But the message is clear: Why This Time is Different Now, have we not heard this story before – that technology will transform banking and then nothing changed fundamentally?bitcoin giveaway 2014Indeed there have been false starts in the past.The most obvious evidence that both beliefs were manifestly wrong occurs year after year, when lines of Singaporeans form at bank branches to obtain new notes for “angpows”, to be given out during the Chinese New Year celebrations.Technology takes time to proliferate.More importantly, it is the interaction among related technologies that often creates transformation – and that takes time.There is reason to believe that this time is different: that technology will indeed transform financial services in a way that has not happened before.

It has much to do with the concept of mobility.First, mobility of technology.Second, mobility of ideas.Third, mobility of payments.We are looking at a financial services industry that will be increasingly driven and powered by technology.The Big Trends in Technology Affecting Finance What are the big trends in technology affecting the financial industry?Let me cite six technologies that appear potentially transformative: First, mobile and digital payments.Payment services are increasingly being enabled by mobile applications and near-field communications (NFC).This is only the beginning.Second, authentication and biometrics.Authenticating one’s identity is critical to gaining access to a variety of financial services and performing many financial transactions.As authentication technology progresses, we can look forward to more secure and efficient solutions to authenticate identity.Biometric authentication is making good advances.For users who are concerned about their privacy or have physical challenges, token-based authentication offers an alternative means of security: Third, block chains and distributed ledgers.

Digital currencies – like Bitcoins – have attracted much interest.But the bigger impact on financial services, and the broader economy, is likely to come from the technology behind Bitcoins – namely the block-chain or, more generally, the distributed ledger system.There are many potential applications of distributed ledger systems in the financial sector: In fact - and this would be of interest to the lawyers gathered here - distributed ledger systems could potentially be applied in any area which involves contracts or transactions that currently rely on trusted third parties for verification.Cloud computing is an innovative service and delivery model that enables on-demand access to a shared pool of computing resources.It provides economies of scale, potential cost-savings, as well as the flexibility to scale up or down computing resources as requirements change.There is a view among some quarters that “MAS does not like the cloud”.This is an urban myth, not true.The world is exploding with information.

Some FIs are investing in and using this big data to derive useful and actionable insights.This might well be the most impactful technological change of the future – computers that can think.We are already beginning to see examples in the financial industry: The legal minds assembled here might want to reflect on where the legal liabilities arising from the actions – or inactions - of such learning machines lie.The six technologies that I have outlined have the potential to transform the financial industry globally.There could well be others that I have not mentioned.The important thing for our FIs is to be alert to these and other technology trends, understand their possible implications, and seize the opportunity to apply relevant technologies safely and efficiently - to boost productivity, gain competitive advantage, and serve consumers better.Smart Nation Needs a Smart Financial Centre At the national level, Singapore has set its sights on becoming a Smart Nation – one that embraces innovation and harnesses info-comm technology to increase productivity and improve the welfare of Singaporeans.

The Smart Nation Programme under the Prime Minister’s Office has brought together stakeholders from the government and the industry to identify issues and develop solutions with this objective in mind.Government agencies have been rolling out a steady pipeline of Smart Nation initiatives.A Smart Nation needs a Smart Financial Centre.Indeed, the financial sector is well placed to play a leading role given that financial services offer fertile ground for innovation and the application of technology.MAS will partner the industry to work towards the vision of a Smart Financial Centre, where innovation is pervasive and technology is used widely to: MAS will seek to achieve this vision together with the industry through two broad thrusts: Smart Regulation for a Smart Financial Centre First and foremost, a smart financial centre must be a safe financial centre.Technology can be a double-edged sword.If not managed well, it can potentially lead to a variety of risks in the financial industry: The first priority on our journey towards a Smart Financial Centre is therefore to continually strengthen the industry’s cyber security.

As more financial services are delivered over the Internet, the frequency, scale, and complexity of cyber attacks on FIs have increased globally.Hackers and cyber criminals are constantly probing IT systems for weaknesses to exploit.There are two reasons for concern: MAS and the financial industry in Singapore take cyber security seriously.But cyber threats will not go away.Like a cat and mouse game, both hackers and cyber defenders have been enhancing their tools and techniques along with advances in technology as well as in response to one another.While seeking to ensure cyber security, MAS’s regulatory approach towards fostering innovation and the adoption of new technologies will take three forms.First, innovation owned by FIs.In matters of innovation, time to market is critical.FIs are free to launch new ideas without first seeking MAS’ endorsement, as long as they are satisfied with their own due diligence.What does this approach entail?Second, innovation in a “sandbox”.

Sometimes, it is less clear whether a particular innovation complies with regulatory requirements.In such cases, FIs could adopt a “sandbox” approach to launch their innovative products or services within controlled boundaries.Third, innovation through co-creation.MAS has a long tradition of active consultation with industry on proposed new rules or initiatives.More recently, we have engaged industry players more directly to co-create rules and guidance – in other words, to jointly come up with proposals.A further possibility in co-creation might be MAS and the industry working together to develop common technology infrastructure that meets regulatory requirements.The aim is to clarify and address issues and uncertainties upfront during the course of development.MAS is not seeking a zero-risk regime.And we understand that failure is part of the learning process.Development Initiatives for a Smart Financial Centre Besides providing a conducive regulatory environment, MAS will work closely with the industry to chart strategies for a Smart Financial Centre.

Let me sketch some of the initiatives we have embarked on: First, the Financial Sector Technology & Innovation or “FSTI” scheme.I am happy to announce that MAS will commit $225 million over the next five years under the “FSTI” scheme to provide support for the creation of a vibrant ecosystem for innovation.FSTI funds can be used for three purposes: Several FIs have already set up their innovation centres or labs in Singapore, some under the FSTI: Some examples of FSTI-supported institution-level projects that are ongoing include: We look forward to see more such innovation projects coming on-board.Changes in the payments scene in Singapore have picked up pace in recent years: But there is a lot more we need to do on the digital payments front.First, payments at stores and restaurants.Second, reduce the use of cash and cheques.MAS and the Ministry of Finance have been co-leading a multi-agency effort to address these issues and guide the development of efficient digital and mobile payment systems.

Third, regulatory reporting and surveillance.As the financial system becomes increasingly complex and inter-connected, MAS needs to sharpen its surveillance of the system with more timely, comprehensive and accurate information to identify and mitigate emerging risks.The vision is an interactive, technology-enabled regulatory reporting framework which will: We are still in early days on this initiative and will work with the industry on how best to take this forward.Fourth, supporting a FinTech ecosystem.The effort to grow a Smart Financial Centre must go beyond the financial industry, to help nurture a wider FinTech ecosystem.We need a strong FinTech community that can: For those of you who are not aware, we have a pretty vibrant FinTech start-up community that is growing over at the “Launchpad” in Ayer Rajah Industrial Estate.MAS looks forward to engaging FinTech start-ups more actively – to better understand emerging innovations as well to help them design their solutions bearing in mind the regulations and risk considerations that apply to the financial industry.