Ravi Menon: ASEAN, Alternative energy, and artificial intelligence

Keynote speech by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the 61st ACI World Congress, Singapore, 21 September 2023.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
22 September 2023
by Ravi Menon
PDF full text
(96kb)
  |  8 pages

Mr Stephane Malrait, Chairman, ACI FMA
Mr Andrew Ng, President, FMAS
Mr Leng Hoe Lon
Ladies and gentlemen, good morning. I am delighted to join you at the 61st ACI World Congress.

What a Difference Ten Years Make

The last time Singapore hosted this Congress was back in 2013. What a difference ten years can make.

In 2013, financial markets were on a roll and the key concern was inflation being too low.

  • The S&P 500 was in the middle of the longest bull run in history. US inflation was running at 1.5% and the US 10-year bond yield was 2.35%.
  • The S&P 500 now, while not exactly in a bear market, is still 8.2% lower than its record high in January 2022. US inflation is at 3.7%, and the latest US 10-year bond yield is at 4.41%.

In 2013, if you looked at Asia, China took the spotlight and ASEAN was in the shadows.

  • China accounted for 51% of all FDI inflows into the Asia-Pacific in 2013 while ASEAN's share was 32%.
  • In 2022, China's share was down to 28%, but ASEAN's share increased slightly to 33%, which is more than China's share.

In 2013, Artificial Intelligence or AI was not a top focus for investments.

  • AI accounted for a miniscule 3% of all venture capital investments in 2012. By first half of 2023, it had jumped to 23% of all VC investments.