of growth this year. the risk to watch out for concerning exports, again stems from the monetary policy changes of advanced economies. these policy changes could cause economic slowdown in asean and china and further affect thai exports to these countries ; however, this type of risk is still remote. other fundamentals include our location and workforce advantages. thailand is located in the center of asean and has well - developed logistics, and acts as a hub for trade with clmv, presenting an opportunity to access fast growing markets. as for the workforce, our semi - skilled labor fills an important niche in the world market. looking at strong fundamentals just mentioned, we can see that thailand ’ s turnaround is no false hope. indeed, the return to net inflow of foreign investment since the beginning of april, indicates the return of foreign interest in thailand. however thailand ’ s structural improvement needs a long way to go. furthermore, economic fundamentals can be eroded if political uncertainty and global risks intensify. the prolonged political impasse will further reduce confidence, financial positions, and government spending. the labor force is already beginning to feel the stress, as recent surveys show the number of overtime hours worked has begun to shrink. now i have presented to you the future conditions, from sound fundamentals to possible risks. with these conditions in mind, i believe that maintaining status quo while waiting for the political situation to resolve is not the appropriate way out because sound fundamentals alone cannot lead to growth. thailand should use the current lull in activity as an opportunity to reposition for future growth. indeed the private sector is already in transition, but still has a way to go. further investment will both jolt some energy back into the economy and build an even stronger foundation for long term growth. bis central bankers ’ speeches supportive roles of the bank of thailand and financial institutions an economy in transition needs support from all sectors of the economy. the real sector, financial institutions, and the bank of thailand have their own important roles which i would like to elaborate. thailand ’ s economy should transition from efficiency to innovation to build competitive advantages. up to now, we have increased productivity by reallocating labor and capital. but this advantage diminished since the global financial crisis. firms may consider moving up the value chain to differentiate products and enhance value. there are two possibilities that exist in thailand depending on the industry. the industries that are behind need to catch up with the ongoing trend, and industries that have the opportunity, can leap ahead

muhammad bin ibrahim : future banking : reimagining banks – driving transformation and innovation keynote address by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the asli ( asian strategy & leadership institute ) 20th malaysian banking summit, kuala lumpur, 26 may 2016. * * * it is my pleasure to be here at asli ’ s 20th malaysian banking summit. the theme “ future banking : reimagining banks – driving transformation and innovation ” is especially relevant in light of the significant changes taking place in the banking industry and wider economy. the new world ahead the financial crisis may have struck almost a decade ago, but has left in its wake a profoundly transformed landscape. with global economic growth remaining slow and uneven, it is increasingly clear that this is no mere downturn in the business cycle, but a realignment of the world economic order. structural reforms continue to take place in many advanced and emerging economies albeit at varying pace across countries. such reforms are critical as this will contribute towards enhancing future growth prospects. in an environment of weak growth, authorities face considerable challenges in managing the immediate effects of some of the reforms. the limits of monetary policy under unorthodox and unprecedented policies continue to be tested in a number of economies, with outcomes that still remain debatable. broader forces of change are also underway. of significance is the accelerated pace of technological change, driven by increased processing power and connectivity. across various sectors, disruptive technologies are rapidly expanding the horizon of economic opportunities while challenging existing business models. in the case of banking for instance, we have already seen greater competition from new entrants amid the emergence of fintech. rapid urbanisation, which is more pronounced in emerging markets, and demographic changes such as an ageing population are other key trends which have major implications on economic and socio - political conditions. at the same time, there is a growing appreciation for the far - reaching impact of climate change, giving rise to calls for more sustainable growth models and innovation. all these developments that are taking place in the banking industry today have created an environment much different from the one prior to the crisis. and together with the implementation of the post - crisis global regulatory reforms, which remains a key priority, their implications require careful and deep thinking as banks plan for the future. domestic policy continuity and priorities our banking industry is facing the current rapidly changing and challenging economic environment from a position of strength, following the successful reform measures that were implemented