INTRODUCTION

I am happy to join you this morning at this LSE Asia Forum. LSE has always had a strong Singapore connection. For decades, it has attracted top Singapore students studying in the UK. Many have left their mark in a wide range of professions. Several have distinguished themselves in public service. Two LSE alumni have served in the Cabinet so far — Dr Goh Keng Swee, who was our first Finance Minister (and much more besides), and Mr Tharman Shanmugaratnam, the current Finance Minister. It is an illustrious record.

KNOWLEDGE ECONOMIES IN ASIA

The theme of this conference — knowledge — engages many of us in Asia. The whole continent is on the move today, because China and India have taken off. But Asian countries know that to sustain their growth and improve their people's lives, the use and creation of knowledge are crucial. Hence many countries are seeking to educate their people, upgrade their economies, and create conditions for knowledge and innovation to flourish.

Knowledge creation is not a new phenomenon in Asia. The ancient Indian civilisation made significant contributions at the frontiers of knowledge. Fundamental mathematical concepts like the number zero and the decimal system, as well as inventions like rocket artillery and coins, can be traced back to India.

Ancient China was arguably the most technologically advanced society in the world. This pre-eminent status lasted for at least two thousand years until around the 15th century. The monumental efforts of Joseph Needham and others to document China's scientific history reveal the long list of its discoveries and inventions: the magnetic compass, gun-powder, paper, printing, and porcelain, to name just a few, were all available in China centuries before they became known in the West.

However, China did not realise the full potential of the ingenuity and inventiveness of its people, and the scientific knowledge that it had accumulated over the centuries. Instead under the Ming and Qing dynasties China closed itself to the outside world. Chinese society stagnated, and eventually decayed and broke down.