•  First is the introduction of the “open sky” policy which has opened up opportunities for new potential players, at a scale large enough to create a strong viable network of airlnes providing regular services with more competitive prices. •  Second, investment in necessary infrastructure has been undertaken, such as airport facilities, landing slots, and aeronautical radio networks to facilitate flight communication. •  Third, rules and regulations, especially on cross-border of services, were more harmonized to support the airlines’ operation. Visa requirements and custom procedures were also streamlined to accommodate travelers. •  Fourth, authorities lifted up standards for pilots, crews, and airlines’ staff, driving the airlines to actively promote their human resource development to be on par with international standards. •  Lastly, the airlines have been encouraged to leverage on investments in specialized facilities in other countries in the region to lower costs, for instance, by using common aircraft maintenance centers and pilot training facilities. This combination of the right business model and appropriate policy supports has yielded tangible benefits to the region. A stronger regional airline network brings in higher competition, lower costs and better service quality, thus improving people’s livelihood and paving way for other types of businesses to benefit and grow. Ladies and Gentlemen, The bigger question is how to replicate the low-cost airlines’ success story in other service industries in the region, where large rooms for improvement have yet to be addressed and a lot of potentials to be unlocked.

In this light, the Bank of Thailand is keen to collaborate with our regional counterparts to promote payment systems connectivity within the region. The third foundation is the work towards standardized rules and regulations. Given our countries’ diverse financial systems, the harmonization of rules and standards should be given a priority so as to strengthen financial interconnectedness on a sustained basis. In the same way that the airline industry harmonizes the regulation on cross-border supply of services, the finance industry should aim at employing internationally accepted principles on finance, which already exist, to help drive harmonization of rules and regulations. Take the payment systems for instance. Currently, different legacy systems among our countries mean that we are not able to “talk” with each other as seamlessly as we wish. Adhering to the same standards, such as the one on financial messaging schemes, can help overcome this challenge. At this stage, the work to achieve harmonization on diverse aspects of banking businesses is underway, and if completed, will make financial transactions within the region much easier. The fourth factor is human capital development. Financial professionals both working in the finance industry and regulators must be well equipped with a set of skills required to serve people of the region. The fast pace of technological and financial innovation indeed urges us to upgrade our capabilities in order to understand more complex financial activities and to cope with growing risks including those related to cyber security.