43.

The recent financial crisis has highlighted the need for Asia to develop a deeper and more liquid bond market to facilitate raising of longer-term funds. Increasingly, there is a need for issuers of debt securities to employ credit enhancement tools, as investors become more concerned over credit quality. This will open up business opportunities in Asia for credit enhancers, such as financial guaranty insurers, which insure the payment of the principal and interest to investors.

44.

The MAS has amended its regulations to allow multi-line insurers, reinsurers and branches of foreign insurers, to write financial guaranty business. To further promote this activity, claim payments made under financial guaranty insurance policies by approved financial guaranty insurers to non-residents will be exempt from withholding tax. This will take effect immediately.