industry, for example, our regional low cost carriers have significantly increased interconnectedness among asean countries. the economic spillovers from this increased connectivity cannot be ignored. by opening up access to lombok, for example, these low cost carriers have contributed to a surge in tourists, marking the fastest growth of tourist arrivals in indonesia. this has incentivised the indonesian government to provide more infrastructure development, including solar power plants, water treatment facilities and roads. this is only one of the many other success stories from our regional home - grown champions. it is my hope that we keep nurturing more, and that their footprints in asean bring even greater benefits to our people. ( b ) role of financial integration 1 / 3 bis central bankers'speeches the private sector ’ s role in enhancing shared prosperity in asean must be facilitated by an enabling environment for efficient cross - border business transactions. this has been achieved through greater financial integration in asean including deeper banking integration ; smoother capital mobility ; and efficient payment and settlement systems. asean central banks have made significant strides towards this end, but by no means will we coast on by. we will continue to champion financial integration that benefits all. an asian development bank study in 2013 has shown that banking integration mobilises savings towards more productive investment, thereby increasing productivity and accelerating growth. this study also showed that smoother capital mobility will facilitate more competitive and productive cross - border lending and borrowing, while promoting financial sector and capital market development. lastly, an efficient cross - border payment and settlement systems promotes cost - effective transactions by reducing the cost of doing business. hurdles faced by asean like it or not, the path to achieving the strategic objectives of the asean economic community ( aec ) 2025 will be filled with hurdles. the pace of convergence within asean would be shaped by members ’ different levels of development. it is harder for countries with resource constraints to shoulder the high costs involved in undertaking structural and institutional changes, which are required for effective integration. in overcoming such hurdles, i stand proud in acknowledging that asean adopts a gradual and phased - in approach that ensures a win - win situation for all. to illustrate this, let me share with you an anecdote from asean ’ s financial integration experience under the aec. the core principles of our framework are inclusiveness and readiness. for example, under the asean banking integration framework, two or more asean countries can liberalise their banking sectors if they are mutually ready. but what if a member is not ready

? do we leave them behind? the answer is, no, we do not. instead, asean countries help each other by providing capacity building to those who need them the most. this pragmatic approach is unique, but it allows us to continue pursuing integration without compromising national priorities. the way forward for asean close cooperation among member states and appropriate safeguards are therefore crucial to ensure integration creates a more resilient asean. this can be made possible through greater collaboration between private and public sector to develop innovative solutions. this is where asean business advisory council ( abac ) plays an important role to further strengthen this partnership. abac has been active in promoting this partnership and providing consultation to assist asean integration initiatives. for example, abac ’ s asean business award – it not only recognises businesses that contribute to the growth and prosperity of the region, but also brings to the spotlight small - and - medium sized enterprises that have the potential of becoming global economic players in their respective industries. in addition, it also serves as a platform to disseminate aec - related information. moving forward, greater investment by the private sector in human capital development and innovation is critical for us to maintain the current momentum. the return on investment on these two areas will be visible in the reduction of the development gap among asean countries. public - private partnerships to address this gap is essential to foster sustainable economic growth and achieve a globally competitive asean. asean has come a long way in fostering cooperation and collaboration to achieve current levels of development and integration. the principle of ‘ prosper - thy - neighbour ’ is the defining mantra of the asean movement and has been integral to our achievements so far. therefore, let us 2 / 3 bis central bankers'speeches develop mutual understanding on the varying degrees of economic development and strategically address the needs of each member country. let me conclude with a quote, by the author virginia burden : “ cooperation is the thorough conviction that nobody can get there, unless everybody gets there ”. i believe the spirit of cooperation and dynamism will accompany us on our journey towards building a more vibrant asean economic community by the year 2025. 3 / 3 bis central bankers'speeches