Singapore may be surrounded by water, but it has woken up to the reality that no financial centre is an island.
After years of insulating the Singapore dollar from speculation, the government yesterday announced measures to progressively internationalise the currency, thus reducing its control over economic policy.
At first glance, the move is the usual stuff of financial liberalisation so commonplace in Asian emerging markets.
Foreign companies will be allowed to issue equity and debt securities in a move intended to bolster Singapore's status as a leading financial centre.
The government has pursued an aggressive campaign to attract initial public offerings and develop into a regional capital markets trading hub.
Visitors need only talk to taxi drivers en route from Changi airport to hear statements of Singapore's ambition to take financial business from Hong Kong after the handover next year.
