regulator and regulatee bond has thus been nurtured. however strong our bond is, our relationship is not an easy one to manage. our perspective does not necessarily converge at all times. tension arises between us from time and time. there are times when the regulator takes measures that banks may believe to be wrong or misconceived. we understand your fears that the proposed regulations may be too complex, inappropriate in geographical scope, or not conducive to level playing fields. we, as regulator, may not only see strong regulatory measures as the prerequisites for banks to do business, stay in business and thrive in business, but essential for the stability of the financial system as a whole. sometimes, banks may decide not to challenge or criticise existing or new regulatory requirements in order not to upset the regulator – of this also we are aware. but it is important that you understand that criticisms of regulations which you believe are going to impact the sector, are wholly welcome as part of the constructive dialogue to get regulation right. nonetheless, together we have been able to take forward the banking sector. the banking industry in mauritius has traversed a long way to assume its present stature. governor gary stern of the federal reserve bank of minneapolis at the international conference on russian banking, 1994. bis central bankers ’ speeches following the biggest financial tremor in the history of banking in mauritius in 2003, many efforts have been made by banks to step up their internal control systems. despite all care and diligence, banks are not totally shielded from fraud risks or financial crimes. recently the banking sector has been shaken again out of its comfort zone. it was not a moment of glory for bankers and the central bank to realize that they have been outwitted by scammers using the loop holes in the regulatory framework. as of date, the total amount reported at our help desk has crossed rs769 million, with 2, 031 victims and if you take into account those who did not come forward, the total amount of the scam may be estimated as being quite close to the billion. it was certainly not flattering to any of you to learn that a number of your bankers may have fallen prey to the ponzi schemes – we cannot put this on their financial illiteracy, can we? it is rather a worrisome fact. it is my duty as regulator to remind you of the importance of stepping up your compliance functions to protect your institutions from being used as condu

, and by 2035 we will be the first developing country to become a hyperaged society by the definition of the world health organization — meaning 20 percent of the population will be over the age of 65. this change will have implications on at least two fronts, both very important to the business sector : labor force, and consumer spending. impacts on labor force let me first start with implications on the labor force. the thai labor force has already passed its peak in 2013 and will only keep declining. for businesses, the shrinking and aging labor force will have an impact especially on labor - intensive sectors such as textile, apparel, leather, and wood and furniture, which account for around 7 percent of the value - added in the manufacturing sector. businesses, particularly those that are labor - intensive, will need to rethink business models and find ways to increase productivity, be it through process automation or focusing on r & d to create higher value - added products and services. retaining and retraining employees will also have to become an integral part of businesses. impacts on consumer spending the second implication of demographic shift will be on the market, as consumers ’ spending will change, both in terms of value and composition. thailand ’ s aged dependency ratio — the ratio between population aged 65 and over to the working age population — is projected to increase from less than 20 percent today to more than 50 percent twenty years from now. this demographic shift would impact the country ’ s productivity and present a challenge to the country ’ s fiscal sustainability, as nearly half of thai people are not enrolled in retirement plans. with the majority of the people having high household debt, low savings, and little financial security, aging population will add more burden to households in the form of increased spending for elderly care. moreover, people tend to consume less as they grow older. a study by tdri found that thais in their 50s will decrease their consumption by more than 20 percent when they are in their 60s. aging population will introduce a dramatic change to the consumer market. but this is also an opportunity : the domestic market for the seniors will become larger. in 2017, consumption of thai population older than 50 is worth 2. 8 trillion baht or around 18 percent of the gdp. this will only continue to grow, creating a large niche market for businesses. realizing this will open doors for many opportunities ahead. the demand for products focused on senior lifestyles such as orthopedic shoes and anti - slip floorings will grow.