adequately supportive to growth. at the same time, we must not forget to chart a course towards the country ’ s long - term economic development. as the thai economy is in need to upgrade growth potentials and increase competitiveness, the bank of thailand will contribute to this process of economic transformation by taking a proactive role in the financial sector development policy. ongoing in this sphere, there are at least three development plans under implementation, namely, the financial sector master plan, the payment systems roadmap, and the capital account liberalization master plan. although the three plans have different objectives, they complement each other and together form a strong foundation for the country ’ s financial sector development. i will highlight a few key elements we hope to get out of these plans. the first one is the financial sector master plan ( fsmp ) phase iii. approved by the cabinet in march this year to set out strategic directions for the next five years ( 2016 – 2020 ), fsmp iii is aimed to promote a competitive thai financial sector, to support more diverse needs at fair and undistorted prices, as well as promote regional trades and investments, with proper supervision to ensure macroeconomic and financial stability. in short, this plan ’ s motto is to promote a “ competitive, inclusive, connected, and sustainable ” financial system. after five years, the bank of thailand expects to see growing financial innovation with more diverse players, both banks and non - banks, especially those offering digital financial services. these services will allow a new segment of customers to gain access to financial services through new channels. smes entrepreneurs, for example, could pitch their ideas to a wider group of investors, through crowd funding and peer - to - peer lending platforms. new ideas would have a higher chance of being translated into businesses, thus promoting innovative spirit among the thai entrepreneurs. financial innovation will also promote competition and drive higher efficiency in the banking sector. at the same time, we expect most thai individuals to have access to basic financial services at a fair price and have an appropriate level of financial literacy. financially deserved enterprises should receive adequate funding, using proper financial instruments. we expect to improve households ’ financial literacy, leading to more prudent financial management and lowered households ’ indebtedness. for financial institutions, we encourage them to improve the level of consumer protection and quality of financial professionals, and to incorporate more sustainability practices into their core business operation. on the road to enhancing regional connectivity, under the asean banking integration framework

tarisa watanagase : thailand – its resiliency and medium - term challenges address by dr tarisa watanagase, governor of the bank of thailand, at the thailand investment forum, euromoney conferences, bangkok, 13 may 2008. * * * distinguished speakers and guests, ladies and gentlemen, i am delighted to join you at this gathering of prominent members of thailand ’ s public and business sectors. this year ’ s thailand investment forum by the euromoney conferences comes at an opportune time when we see clearer signs of the thai economy gaining growth momentum, supported by government policy measures and revival of private sector confidence. nevertheless, there are also imminent downside risks predominantly from external fronts, which could hinder the continuation of this positive trend. i will focus the first part of my talk on thailand ’ s resiliency to achieve healthy growth in 2008 and beyond. the second part will highlight key issues on competitiveness and strength of thailand ’ s economic future in the face of trade and financial globalization. judging from the list of experts from whom you will be hearing over the next two days, i would like to share with you my perspective from the policy making side. ladies and gentlemen, thailand ’ s record of economic resiliency to adverse shocks and uncertainties in the past should clearly demonstrate the strong underlying fundamentals. in 2007, notwithstanding political uncertainties which dented confidence since september 2006, the thai economy grew by 4. 8 percent. overall, the main growth driver continued to be net exports, which contributed to almost 60 percent of the overall gdp growth. while demand was weak in tandem with confidence, government pump - priming also helped achieve the favorable growth outcome. going forward, sustainable economic growth can be achieved through several different means. but, among them, the prerequisite is maintaining the healthy growth momentum with the right policy mix. i will elaborate on this point later. for 2008, the growth prospect hinges largely on the recovery of private consumption and investment, supported by increased government spending. this year, the strengths of these three growth engines will be particularly important, since exports – the fourth engine – is expected to moderate in line with the global economic slowdown. overall, the monetary policy committee expects the thai economy to grow by 4. 8 - 6 percent. due to continued high prices of energy and food, headline inflation is expected to be in a range of 4. 0 - 5. 0 percent for the whole of 2008. nevertheless, the