•  Beside the geographical advantage, the Thai baht has gained wider acceptance in trading transactions with our neighbors. The use of local currency in regional trade has lowered financial transactions costs for businesses, especially in the current period of foreign exchange volatility. In this connection, the Bank of Thailand has relaxed capital account regulations to further support the use of local currency in the GMS region. •  To support regional connectivity, Thailand also offers Treasury Centers and International Headquarters as platforms for businesses to improve efficiency in financial and resource management. Some Japanese multinational firms have already been granted licenses and I am glad to learn that many more have expressed interests for setting up a Treasury Center as well as an International Headquarter in Thailand. On the financial side, Japan and Thailand have continued to strengthen our financial linkages. In Thailand, there are currently a total of 26 Japanese banks’ representative offices, 2 full branches, one locally incorporated bank and one subsidiary, which was just recently inaugurated. Japanese non-bank financial institutions providing personal loans, nano-financing and insurance services also maintain a strong presence in our Thai market. 4  BIS central bankers’ speeches  Looking around in the region, we are proud to be the country with the most active and most comprehensive Japanese financial service providers. Indeed, Japanese financial institutions have taken the lead to use Thailand as a strategic foothold for spreading their wings in the region.

As a case in point, the Bank of Tokyo-Mitsubishi recently acquired a microfinance bank in Cambodia, using the Bank of Ayudhya in Thailand as a base for the acquisition. Such financial linkages will serve Japanese enterprises and tap opportunities in one of the region’s exciting emerging markets. The strong presence of Japanese financial institutions in the region will surely be an important conduit for non-financial companies in Japan to leverage on the promising prospect of the GMS region. Ladies and gentlemen, We have indeed come a long way and have gone through several tests of external disturbances. Let me assure you that the Bank of Thailand will continue to strengthen our macroeconomic resilience and stay firmly committed to financial stability as one of our principle mandates. We also embrace continuing reforms and upgrades in the financial sector to remove obstacles to the development of regional trade and investments. We are confident that Japan, Thailand and the region can mutually benefit from broader and deeper linkages, both economically and financially. With stronger economic and financial ties, I am excited to see how we, together, will move the region forward and continue to work closely in the global arena. Again, it is my great honor to be here tonight with our close and longtime friends who have supported Thailand’s economic and financial development. Thank you very much for your friendship, your commitment, and your contribution to the Thai economy. I look forward to further cooperation between our countries for many years to come. Thank you very much.