continue slowly but on course. japan also has an optimistic outlook, given a series of government stimulus measures to pull the country out of deflation. improving outlook for the global economy should underpin a gradual recovery in export for asian economies, including thailand. we have forecasted the gdp growth this year at 4. 9 percent. however, given a stronger than - expected gdp growth in 2012, this forecast is likely to be revised up for the next release in april. inflation is expected to remain low, with headline inflation around 2. 8 percent. the second round minimum wage increase is unlikely to have significant impact on inflationary pressure, given that many firms are able to make necessary adjustments in reducing costs and increase productivity by shifting to more capital - intensive production. robust domestic demand should continue to be the major driver for thai economy. private consumption is backed by many supportive factors such as the first - car scheme from the previous year and cuts in personal income tax and accommodative monetary and fiscal bis central bankers ’ speeches policies. private investment is also expected to expand well, given the crowding - in effects of public infrastructure investment projects. export sector should pick up pace towards the latter half of this year on the back of moderate recovery in the global economy. nevertheless, there are still many challenges lying ahead for the thai economy. the state of the global economy, while improving somewhat, remained fragile. and a firm recovery is still subject to risks and uncertainties. domestically, although inflation seems to be benign, there is a possibility of rising inflation pressure from oil prices after global demand started to pick up gradually. supply constraints, mainly from tight labor market, may also add on to wage - price inflation in the future. as a central bank, we always have to remain vigilant on price stability. of more immediate concern ; however, are potential threats to financial stability stemming from developments in asset prices as well as household indebtedness. activities are increasingly active in the stock market and real estate market. we see more and more construction of condominium and residential houses in bangkok, peripheral and major provinces around the country where prices of some of these projects have gone up rather fast. we also see household debt trending upward to over 70 percent of gdp. we will continue to be watchful and make sure that the situation does not get out of hand to threaten financial and economic stability. ladies and gentlemen, this leads us to the second part of my talk this evening. given recent economic and financial

anselmo l s teng : corporate governance in the financial sector welcome speech by mr anselmo l s teng, chairman of the monetary authority of macao, at the fsi - seanza regional seminar on corporate governance for banks, macao, 22 april 2008. * * * distinguished guests, dear delegates, ladies and gentlemen, good morning, i would like to extend my warmest welcome to all of you, on behalf of the monetary authority of macao, for attending the fsi - seanza regional seminar in the next three days. it is our honour that fsi and seanza hold this prestigious seminar in macao, a fascinating city of a unique mix of eastern and western heritage and recreation, featured by various historical and nostalgic constructions as well as gigantic entertainment complexes. i am very pleased to have the privilege to make an opening remark in this occasion and to share with you some of my views on corporate governance in the financial sector. undoubtedly, this is a prominent topic drawing extensive discussion amongst regulators and entrepreneurs in developed and developing countries at all times. to put the discussion in a nutshell, i would like to start with a study of the idea enshrined in the term “ corporate governance ” which is a legacy of our ancient wisdom. the word “ corporate ” comes from latin, meaning the formation of a body, and the word “ governance ” originates from greek, implying to steer a vessel across the sea. these concepts of ancient wisdom is still relevant nowadays, since the protection of shareholders ’ or stakeholders ’ interests as well as the board ’ s role to lead an institution to sail through uncertainties and challenges is the essence of modern corporate governance. in the context of the financial sector, effective corporate governance practices are indispensable to maintaining trust and security and critical to the proper functioning of economic and social system as a whole. poor corporate governance may lead to loss of public confidence in the ability of a financial institution to manage its assets and liabilities in a prudent manner, trigger more serious impacts on the financial sector through contagion effects and may even end in systemic crises. different from other sectors, financial institutions, particularly credit institutions, have “ duties of care ” not only to their shareholders but also their stakeholders, namely, depositors and customers. as the sole regulator of the financial sector of the macao special administrative region, the monetary authority of macao has exerted a lot of efforts to strengthen corporate governance in order to