The Singapore International Monetary Exchange Limited (SIMEX) was granted a 5-year tax holiday when it was first established in 1984. The tax holiday was extended in 1988 and again in 1993 for additional 5-year periods to support the growth of SIMEX. The incentive has enabled the Exchange to build up its reserves and improve on its trading infrastructure.

SIMEX is currently the foremost financial futures exchange in the Asian time zone for the trading of international futures and options contracts. But there is no room for complacency. In order to meet the challenges of global competition and the emergence of other exchanges in the region, SIMEX must continue to improve on its facilities and strengthen its financial reserves. I have therefore decided to extend the tax holiday for SIMEX by another 5 years to the year 2003.