With the introduction of changes in the Board of Investment’s criteria for investment privileges, the government has geared up its effort in promoting high value added industries. It also announced Special Economic Zones in order to facilitate the growing networks of production, trade, and services initially with our neighboring countries. By expediting growth-enhancing infrastructure development and increasing ease of doing businesses, the government also helps promote crowding-in of private investment. Fiscal reforms are also in the pipeline in order to boost efficiency of the public spending, revenue collection, and other public administration. Reforms of state enterprises will also be vital to upgrading the country’s growth potential as they manage strategic assets of the country, and account for a large share of public capital expenditure. All in all, our car needs an engine overhaul. The government’s recent initiatives form an important part to uplift the car’s engine. In the meantime, I can assure you that we have a good suspension system to get through a bumpy road of market volatility ahead. Ladies and gentlemen, At this juncture – during which Thailand is going through multi-dimensional reforms – the Bank of Thailand will do our part to safeguard stability, support the economic recovery, and facilitate long-term structural reforms. 1  4  El-Erian, Mohamed A. “Navigating the New Normal in Industrial Countries.” Per Jacobsson Foundation Lecture. 10 Oct. 2010. Web. <https://www.imf.org/external/np/speeches/2010/101010.htm#P12_100>. BIS central bankers’ speeches  There are three main elements of our policy navigation that I would like to share with you this morning.

Indeed, this is in line with the principles of Maqasid al-Shariah (objectives of Shariah). Financial innovation, as has been shown in the recent crisis has led to adverse consequences for the economy. By learning from the lessons of the recent crisis, the process of innovation in the formulation of Islamic financial products and services must be done carefully and in accordance with Shariah in its entirety and to take into account the distinct risk characteristics of Islamic banking. The second dimension is on the need for continuous investment in human capital development. It is important for the Islamic financial services industry to continually promote human capital development and expertise to create a larger pool of experts and high calibre professionals. This involves enlarging not only the existing talent pool, but also building a robust pipeline of skilled human resources for the future. Bank Negara Malaysia is committed towards promoting human capital development. The establishment of the dedicated ancillary institutions such as the Islamic Banking and Finance Institute in Malaysia (IBFIM), the International Centre for Education in Islamic Finance (INCEIF) and the International Shariah Research Academy (ISRA) to focus on the area of training, education and research are aimed to meet this objective. We would like to see a higher degree of engagements by the financial institutions to meet the talent need of the industry. Islamic financial institutions are encouraged to collaborate and engage with these educational institutions, with exchange of staff, attachments, and internships.