weak corporate sector spending, limited government resources, and lingering global uncertainty. we note that there are regional and global arrangements initiated to deal with infrastructure financing, to name a few : the asian bond markets initiative ( abmi ) under asean + 3 cooperation, the asean infrastructure fund ( aif ) under asean cooperation together with adb, global infrastructure fund ( gif ) under the g20 cooperation. further in national level, government has also set aside the funding for infrastructure development. would all initiatives be sufficient? 10. let us look into this question. how much does asia need to finance its economy? adb estimates that over usd1 trillion must be spent on infrastructure to maintain asean ’ s current economic growth trajectory in a ten - year period. furthermore, it is also estimated that during the same period, asia will need to invest approximately usd8 trillion in overall national infrastructures for energy, transport, telecommunications, water, and sanitation. in addition, the region will need to spend approximately usd300 billion on regional pipeline infrastructure projects, involving physical construction works and coordinated policies spanning two or more asian countries as well as having a significant cross - border positive impact. 11. financially, the demand for cross - border and regional infrastructure funding often competes with funding for improved national infrastructure. the tremendous need on building infrastructure projects has resulted a large financing gap, or the difference between total financial requirements and the likely available financing through direct public resources. bis central bankers ’ speeches 12. on that note, it is inevitably we need to redouble the effort of financing for development. allow me to name a few options. private - public partnership ( ppp ) is an alternative solution to accelerate infrastructure development. while it potentially advances infrastructure investment, we should be mindful of its risk to fiscal position as ppp typically creates contingent for future liabilities. good projects have to be selected carefully. good governance and strong regulation enforcement are necessary. 13. furthermore, financial sector should definitely play an active role in financing for development. strengthening prudential and safeguarding measures should also complement this role. with its sound macroeconomic policies, rising middle - income, high saving, abundant labor resources, higher education level, and rapid technological adoption, asia has the right components for sustaining growth and attracting investment. 14. i am also of the view that promoting capital market development and reducing heavy reliance of bank - based financial intermediation are both urgent and essential. asia has embarked into this area by furthering its integration in financial sector

governments in the developing world, unfavorable global climatic trend generally coupled by the lack of sufficient technology, human capacity and fiscal space may further limit the scope of policy requirements that could be extended to them. our coordinated and shared response to climate change must entail a systematic re - profiling and redirecting of global expenditures by both governments and businesses to the developing world. let me remind the audience that the bali road map emphasizes the provision of financial and other incentives to, scale up the transfer of clean energy technologies from the developed to the developing world. nations have also agreed to develop programs designed to scale up investment that will lead to the transfer of technologies to developing economies. while the government is going to be important even critical in dealing with climate change, an even more difficult task involves changing the incentives of the billions of individual consumers and companies in the private sector. consumers will need to reduce the use of carbon intense products and businesses motivated to develop alternatives. getting these incentives right and unleashing private sector innovation has to be a big part of the response. in that respect, if properly coordinated, climate change mitigation and growth can both be pursued at the same time. capturing the needs of countries to mitigate the impacts of climate change, new industries are already rapidly developing. the countries that get the incentives right by creating an environment for the development of these technologies designed are on the right path to becoming economic winners in the next great technological revolution. let us also not forget the most important aspect of any program in mitigating climate change, namely not to leave behind the world poor while countries develop and implement marketbased solutions to mitigate climate change risks. mechanisms for adaptation fund to help poor countries cope with climate change should be part of our partnerships for development. to properly define our role, as central bankers, in such a global effect, we need to spell out as precisely as we can the ramification of the macroeconomic impact of global climate change. as we gather in this room today, the world out there is struggling to deal with a crisis not, in my view, unrelated with the problem of global climate change : the unprecedented food and fuel price surge. unfortunately, it happens as the world finance is also in turmoil. the market consequences of all that have kept central bankers across the globe awake at night from time to time. fellow governors, ladies and gentlemen, before i conclude my remarks, let me reiterate that we live in a truly challenging time. viewed from