If we could not resolve the debt problem in a timely manner and adopt new work practices, it will be next to impossible to compete successfully in the world market. The Bank of Thailand and the Government are alert to this challenge. And the Government has already initiated the process of overhaul. One notable attempt at debt restructuring is the establishment of the Thai Asset Management Corporation (TAMC). The entity was set up to reduce distressed assets in the banking system through centralization of NPLs' management. This should allow banks to resume their normal function and new lending. New lending is needed to provide the working capital to support corporate restructuring as well as business expansion. This way, our energy will be channeled toward more productive enterprises. And, with the authority to liquidate and rehabilitate businesses through swift legal procedures, the TAMC is unique in its unprecedented power. Next, given that a substantial share of distressed assets remains outside the purview of the TAMC, I see the need to expedite the process of corporate debt restructuring which requires a speedy passage of the reformed bankruptcy law. This action will be testimony to the sincere effort that we in the authorities can make for the benefit of our future generations. Insofar as the banking sector is concerned, the Bank of Thailand regards better enforcement of the banking and financial institution regulations as a priority. This is an area that the Bank of Thailand takes leadership role to strengthen the soundness and efficiency of the financial institutions.

Every small country should be able to seize the opportunity if policymakers get a few fundamental things right. I am now going to name four of these fundamentals. Four cornerstones of competitiveness The first, if not the most important, cornerstone of competitiveness is society’s openness to new ideas, its willingness to communicate and ability to adapt. Of all factors that support economic growth, openness is universally considered the most important. Openness to ideas allows better understand and make use of the global marketplace. Policy-makers can do a lot to promote openness. Efficient telecom infrastructure and Internet penetration serves as one way to do it. Market liberalization and competition are the keywords here. Another equally important factor is the country’s ability to attract highly mobile professionals. Consequently, issues like security, quality of public and social services, language skills and clean environment are also becoming increasingly relevant in ensuring competitiveness. The second and equally important factor in supporting innovative society is the spirit of entrepreneurship and culture of risk-taking. Openness makes the world and its ideas accessible to people. However, you need an entrepreneur to make use of these opportunities and ultimately bring benefits to the whole society. Today, competitiveness is directly and positively correlated to the ease of doing business. There are several areas where policy developers can encourage risk-taking. For instance, better access to public services is one of the most instrumental ways to reduce red tape and increase the efficiency of business environment, either by means of the Internet or any other means.