INTRODUCTION

focus on the western Anglophone world has served Ireland well Why Asia Matters to date but the new reality of change demands a paradigm shift in mindset. China alone is targeting $750 billion in outbound FDI by the conclusion of the current five year plan in 2020. In this context, for Ireland there is an urgent need for a heightened focus on opportunities in Asia, which accounts for 40% of global GDP and over 60% of global Alan Dukes, Chairman Asia Matters consumers who need top quality products and services. Ireland must seek increased opportunities to play an increasing role in this huge and diverse market. I would like to pay tribute to the late Dr. TK Whitaker, former Secretary General of the Department of Finance and Governor of the Central Bank, who recently passed away at the age of 100. From the late 1950s he played a pivotal role in the economic development of modern Ireland, not least by bringing about the kind of paradigm shift in economic and trade policy that we need By Alan Dukes to repeat today. Dr. Whitaker encouraged us to look beyond our shores for the economic prosperity we desired as a nation. Ireland has achieved enormous success in business partnership with the western Anglophone world. The challenge before us is to communicate the Ireland proposition and establish strong relationships in a new way that resonates as successfully within key Volatility in global markets is the new business markets in Asia. normal. With Asia likely to account for Why Asia Matters for Financial Services almost half the world’s economic output From Japanese global corporates seeking to invest cash reserves by 2025, Ireland’s engagement with Asia is prudently to Chinese enterprises rapidly scaling and globalizing, more important than ever before. there are very significant needs for sophisticated investment vehicles for Asian clients. Combined with rapidly rising consumer In this special edition of the 4th Asia Matters Asia Ireland Business classes in China, India and Indonesia along with other ASEAN Yearbook, we deliver unique insight from our members, leading countries, the demographic scale of opportunity is unprecedented. government policy makers, CEOs and thought leaders on the future Within the near future over a half of global wealth and over three of Asia - Ireland business growth in the decade immediately ahead. quarters of global customers will be in Asia. This has clear and The importance of nation branding and a lack of awareness positive implications for the financial services sector. of Ireland in Asia were recurrent themes during our recent Asia Why Asia Matters for the future of Ireland’s International Summits. We address these issues here in one of our key articles, Financial Services Brand Ireland as a Competitive Advantage in Asia. The financial Global Banking and International Financial Services have undergone services brand IFS 2020 has been a huge success and one from truly historic and far reaching transformation in recent times. This which other industries could learn. We are delighted to bring transformation has been driven by two main factors: you an account of the ambitious growth plans for that sector by First, the Global Financial Crisis has forced banks to undertake Eoghan Murphy TD, Minister of State for Financial Services in ‘back to basics banking’ with an intense focus on the cost of capital. Ireland. Second, the profound disruption of traditional banking services Our sincere thanks, as always, to the for his Foreword by mobile and digital entrants to the market including, inter-alia to the Yearbook and to all those stakeholders in the Asia Matters Fintech start-ups, international payment providers and leading tech community who shared their expertise. and social media companies. Why Asia Matters for Ireland If this transformation were not sufficiently disruptive for many Ireland will inevitably be affected by recent and prospective of the Global Banks and International Financial Service Providers changes in global geopolitical risk. Brexit, the new US located in ’s IFSC, we now have to add into the mix two administration and diminished enthusiasm for FTA’s will be among seismic geopolitical events namely, Brexit and the Trump presidency the difficult challenges for exporting companies that need to look which are transforming economic, financial and business links to new international markets. There will clearly be challenges for between Ireland and the USA, between Ireland and the UK and both inbound and outbound FDI but there will also be potential between each of those countries and the EU, of which Ireland firmly for positive developments. The historical Irish economic model of remains a member state.

6 Asia Matters© L-R Martin Murray, Executive Director Asia Matters, HE Dr Yue Xiaoyong, Ambassador of China to Ireland, , TD Minister for Foreign Affairs & Trade, Alan Dukes, Chairman Asia Matters.

What does this mean for Ireland’s International Financial Services offering to Asian Banks and Asian Financial Institutions? In my view, there is tremendous potential for substantial and positive changes in those Ireland - Asia Banking and International Financial Services relationships. China’s launch of its ‘One Belt One Road’ OBOR plan to connect Asia to Europe mirrors the historical concept of the Silk Road. This Belt Road Initiative will have significant global economic implications. I believe that Ireland will establish new connections with Asia for its International Financial Services value proposition on three distinct levels: (a) direct Ireland - Asia level, (b) Ireland – Europe - Asia level and (c) Ireland - UK - Asia level. On that basis alone, I think we can agree that Asia Matters for the future of Ireland’s International Financial Services Industry. L-R Martin Murray, Executive Director Asia Matters, Julie Sinnamon, CEO Enterprise Ireland, Alan Dukes, Chairman Asia Matters. Why Asia Matters Matters Asia Matters as Ireland’s only Asia think tank, will continue to prioritise the importance of the financial services sector and again bring our FinTech Forum to Asia. Our key circles of competency include financial services and fintech, food and agritech, ICT and disruptive innovation, FDI and global talent, higher education and research and tourism and location branding. Working in close partnership with our members, leading corporates and government stakeholders, we will continue to build dynamic business links between Asia and Ireland. As the recognised centre of expertise and thought leadership for Asia business knowledge in Ireland, we will enhance informed mutual understanding and drive connectivity to build win –win partnerships. May I take this opportunity to thank our corporate and government members for their ongoing support for the work of Asia Matters and their commitment to the future of Asia Ireland relations.

L-R Martin Murray, Executive Director Asia Matters, Alan Dukes, Chairman Asia Matters, Alan Dukes is Chairman of Asia Matters and is a former Minister for Eoghan Murphy, TD Minister of State for Financial Services Finance in the Irish Government

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