Besides, it has also estimated that roughly 8 trillion US dollars2 will be required to meet the infrastructure needs of Asia over the next decade. Although this amount is daunting, I believe that it can be fulfilled, given the current global capital surge and the fact that Asian savers put away around 7 trillion of US  1  2012, ADB website (http://www.adb.org/countries/gms/news-releases)  2  http://www.adbi.org/files/2009.08.31.book.infrastructure.seamless.asia.pdf pp.181  BIS central bankers’ speeches  1  dollars3 each year. Like directing the flow of flood to the right river so that it can become benefit for those living in the area, this overflowing capital can be harnessed to benefit needed long-term projects. 7. To meet the region’s financing requirements, we should look into new means to attract funding. Firstly, by promoting private sector participation in infrastructure development through public-private partnership (PPP). The PPP model can improve the efficiency of long-term projects by adopting the private sector’s expertise and reducing the burden on government budget. Although the PPP model has long been discussed, the implementation of this model is still a trial-and-error practice. Regardless, I believe that through clear governance and suitable regulatory framework, PPPs could promote private sector’s participation and bring in the untapped resources. Secondly, by customizing innovative financial instruments. This calls for inter-agency collaborative efforts to introduce innovative financial instruments which link specific funding requirements and market preferences. To name a few, Thailand has recently launched its first infrastructure fund to finance its sky train extension.

On an international scale, financial cooperation initiatives, such as the ASEAN Infrastructure Fund (AIF) would also complement domestic endeavors in channelling intraregional savings to needed projects. 8. This leads me to the second of the preparatory work, which is improving supportive framework for private financing. The Mekong river is made up of small tributaries flowing towards the same end to form a large fertile river. The benefits we receive from the confluence of these small tributaries as opposed to one waterway are incomparable. Likewise, strengthening domestic capital markets would help allocating available savings to the most productive use, thus, facilitating real sector’s economic activities and supporting economic growth. 9. A deep and liquid financial market could reduce business over-reliance on bank financing channel. On the other hand, it could also serve as a less-expensive alternative source of funds for local entities. The initial stepping stone towards a well-developed financial market is to improve the cross-country interconnectedness of local financial markets. Financial connectivity could be enhanced by linking capital and bond markets, creating regional exchange trading system, as well as developing a network of payment and settlement system. Another important step is to streamline rules and regulations to facilitate cross-border movement of capital. Such a process can be achieved through promoting flows of capital among member countries via reducing regulatory obstacles to stimulate foreign participation and outward investment. Currently, Thailand allows non-residents of ASEAN to issue both foreign currency-denominated and local currency bonds. The derivative market also serves investors to hedge against financial risks.