contribute towards the growth of the tourism and the retail sector in our economies. with extensions being sought to include debit and credit cards, money transfers and mobile banking services, businesses will be able to leverage on these services to reduce transaction costs and improve efficiency for such transaction. conclusion let me conclude my remarks. despite the distinct cultures, histories and languages that make each asean nation unique, there is a common thread that runs through the region that keeps us cohesive – a unanimous and unwavering commitment to empower our people together. this solidarity will however also require the asean business community to complement the efforts made by the regional authorities. malaysia looks forward to being the chair of asean in 2015 to build on the progress that has been achieved to further advance the regional financial and economic integration. this will also include the agenda of promoting asean as a destination for global investments. asean integration is a joint responsibility that has always been embraced. let us demonstrate that in the case of asean, the whole is greater than the sum of its parts. bis central bankers ’ speeches

particular, intra - regional trade and investment activity has increased significantly in this recent 15 years. since 1990, asean intra - regional trade has grown from 18 % to 24 % of total trade, and intra - regional investment has quadrupled since 2000, from 4 % to 17 % of total investment. while there has been a trend towards greater intra - regional trade and investment, financial integration in the region has lagged behind. this has raised questions on whether in fact regional financial integration is important, given that the lack of it has not been an inhibiting factor to economic integration. asean economies, however, have now reached that stage of development in this decade whereby greater regional financial integration will raise further our growth potential. an important key to unlocking our full potential is to accelerate this integration and cooperation within the asean region. main benefits of financial integration an intensification of financial integration in asean will not only serve to enhance growth at the national level, but also act as a catalyst to achieve a growth that is mutually reinforcing bis central bankers ’ speeches for the economies in the region. regional financial integration will bring about the more effective intermediation of funds and thus the efficient allocation of resources in the region. excess savings in one country can be channeled into productive investments in another country within the region, thereby promoting growth. the asean region has one of the highest savings rate in the world, at approximately 30 %, as well as international reserves amounting to usd800 billion. the bulk of asean ’ s surplus funds, however, are intermediated mainly through the international financial markets before being reinvested back into the region. in particular, more than 90 % of cross - border portfolio investment flows are channeled to the advanced economies. given the immense funding requirements that asean has, particularly for large investment projects and infrastructure development, greater financial integration will facilitate channeling part of the region ’ s surplus funds towards productive investment opportunities in the region. regional financial integration will also allow for more efficient risk diversification of assets to include foreign assets from within the region. this will not only reduce vulnerability to external developments but will contribute to achieving more stable conditions in the regional financial markets. additionally, this trend has been reinforced by greater coordination and cooperation among the regional central banks and regulatory authorities to safeguard financial stability. the collective actions that have been taken have enhanced the ability to manage and respond to risks confronting the region. greater financial integration has also created an enabling environment for businesses. it has facilitated improved access