flexibility and compromise shown by the members of the executive board in agreeing to the package we have at these spring meetings. it is indeed a delicate balancing act, having to take into account the differing views and interests of all member countries. we particularly underscore important progress that we made to agree to a more transparent quota formula. with the inclusion of gdp at purchasing power parity in the gdp variable, and the tripling of basic votes, the quota reform could better account for the dynamism of emerging economies, while improving the representation of low - income countries. while no quota reform package is perfect, it is broadly in line with the objectives set out in the singapore resolution. like many others, however, we are disappointed that the headline shift of quota shares from advanced countries to emerging market and low - income countries – which will be the public ’ s point of focus – is a meager 1. 1 percentage points. 11. difficult compromises have been made, and we believe it is now time to bring this important issue to a close. agreement on the package by the fund ’ s membership will be critical to restore the fund ’ s credibility and legitimacy. within our constituency, many of us will still be highly under - represented after the second round of ad hoc quota increase. however, in the spirit of compromise and flexibility, we are prepared to support this package on the understanding that this is the first of many steps in a reform process which will eventually see all countries close their under - representation. in this connection, we underscore the importance of future realignment of quota shares on a periodic basis, beginning with the fourteenth general review of quotas, as is currently proposed in the package. we maintain that ppp gdp and compression factor should remain in the formula for it to credibly capture the dynamic contribution and relative economic size of countries in the world economy. we also support the future work program, in particular further refinements to the definitions of openness and variability to guide future realignment of quota shares. 12. the new income model is also a critical element of the reform package, without which the fund cannot discharge its functions properly. we are pleased to note the broad consensus on the core elements of the proposed new income model for the fund and are prepared to give our support to the emerging package. we would simply underline the importance of establishing the necessary governance arrangements that allow the board and the management to deal effectively with the risks that broadening the fund ’ s investment

to build immunity to lessen the impact of unwarranted risks. among others, afca could serve as a forum to ensure that cooperation on cyber security is brought to fruition. regulators also need to strengthen their cooperation to minimize possible cross - border spillover risks. on this note, i am glad to report that tomorrow cbrc and the bank of thailand will enter into a mou on banking supervision. the third area of cooperation is to enhance financial inclusivity in our region. the financial sector must be aware of its social responsibility and take active roles in promoting financial access and inclusive growth. people at large need to have access to basic financial products at minimal prices, together with adequate financial literacy and financial planning skills. in summary, financial connectivity can be and needs to be enhanced in asia. afca, with its diverse membership, is in a unique position to deepen financial cooperation and promote connectivity among its members. afca can play significant roles to strengthen the asian financial sector and asian economies by improving productivity, building stronger immunity, and promoting more financial inclusivity. in closing, i would like to congratulate once again the chinese leadership, cbrc, and afca. i wish afca very fruitful years ahead. thank you.