Asia faces 'golden opportunity' after crisis: Singapore fund

TAIPEI: Asian financial institutions face a "golden opportunity" after the global slump left their Western counterparts struggling, the deputy head of Singapore's sovereign wealth fund said in Taipei on Monday.

Tony Tan, deputy chairman of the Government of Singapore Investment Corporation (GIC) said Asian firms were in much better shape to play a major role on the region's expansion over the next several years.

"Asian financial institutions and markets have been given a golden opportunity," he told a forum in the Taiwan capital, according to the text of his speech.

"The globalised Western banking system, hampered by capital constraints and re-regulation, will likely not be able to intermediate the massive capital demand needed to finance Asian growth."

"This leaves the playing field unusually open for Asian financial institutions and markets, particularly for the next few years."

The GIC is the world's fourth-largest sovereign wealth fund, managing a global portfolio of more than $100 billion.

Asian banks have benefited from entering the crisis with relatively healthy levels of capital, liquidity and non-performing assets, but now they must act fast, Tan said.

"Asian banks and capital markets will need to develop quickly to step into the breach," he said.

"Regulatory and development authorities in the financial sector in Asia need to cooperate as never before with each other and financial institutions to develop regional financial and capital markets."