We have managed to get the bank consolidation process moving. But we are also aware that in addition to mergers there has to be an overall improvement in efficiency and competitiveness among the local banks. There is also a lot to do in corporate restructuring. We will continue to approach the problem in a pragmatic way. On a longer-term horizon, a financial system masterplan, which is nearing completion, will chart out strategies to strengthen our banking system to meet the demands of globalization and liberalization.
Foreign investment is needed for the technology it brings, the managerial expertise and market.
While we continue to attract foreign investment in electronics and petrochemicals as well as other industries, we foresee an increase in investment in IT and the services industry. Our education and skill development process has to undergo major changes. The Government will thus emphasize education to narrow skill gaps as the economy adapts to the K-economy. Expansion to the tertiary institutions as well as changes to the education system will be stepped up. The types of financing must also alter.