countries. these international regulatory standards have no direct international enforcement power. before the global crisis, the governance is based on discipline which came from the market discipline, but now market discipline has diminished. bis central bankers ’ speeches also the influence and discipline from the imf program or fsap may have been somewhat countered by growing importance of regional financial assistance mechanism with their own governance. each country or region would be more likely to adopt these new standards if they buy - in to the rationale of the reform. inclusiveness and coordination are therefore keys for commitment, and the pillars of the new governance for bodies such as the basel committee and financial stability board ; this is perhaps the new bretton woods. turning to longer - term challenges and strategy, asia ’ s increased economic importance will rise as a consequence of its development efforts in liberalizing the economy and the financial system, allowing market forces to enhance efficiency and productivity. these forces will accelerate with increased integration of the asean economic community, asean plus 3, and plus 6. for intra - asia ’ s financial flows, asia is not “ homogenous ” – the “ north asia ” and financial center economies are developed, and some are mature economies facing their own challenges. the rest of asia is emerging economies, some facing middle income trap, and some facing the transition challenges from centrally planned to market economy. “ north asia ” will tend to have savings surplus, and need growth potential and to export of fdi. “ south asia ” will need savings to finance investments. there is a natural synergy in resource allocation, industrial and logistic linkage. thus, regional financing and growing role of regional - centric financial services would naturally follow. the most critical challenge emerging asia faces is to build economic and financial infrastructure fast enough to properly harness the growth energy and put these capital into productive use. without adequate financial infrastructure, namely market and legal infrastructure, and financial literacy, there is potential risk that emerging asia cannot absorb such flows. this could result in misallocation of resources, including asset bubbles and instability. in parallel, public investment in infrastructure projects, as well as social investments in education and healthcare, are keys for increased productivity and economic upgrade. the challenge lies in getting the right balance between growth and stability, in managing large and long - term financing, increasing public investment, while keeping financial discipline. these are complex issues on how to ensure efficient resource allocation. a key strategy is to enhance the role of the market mechanism of the financial sector in asia

accommodative stance without compromising financial stability. 8. with that said, preparation on the side of the private sector is equally important. in this regard, i would like to encourage commercial banks to help raise the private sector ’ s awareness and encourage the use of the available financial instruments to manage their fx risks. i wish to point out that in these uncertain times where outcomes are driven as much by expectations as by the underlying fundamentals, protection against the fx risks should be viewed as the dominant strategy. that is, protection should be recommended irrespective of whether there is any observable trend of the currency and irrespective of whether one is on the importing or exporting side of the trade. also, if your clients are engaged in intra - regional trade, recommending using a regional currency to reduce overreliance on the major currencies may be worth considerations. 9. ladies and gentlemen, i would like to touch upon two more important developments in the thai financial markets before concluding. the first of these is the launch of the code of conduct for fx dealers by the end of this quarter. on behalf of the bank, i would like to thank everyone involved, especially the aci, for your considerations and suggestions that have made this long - term project a feasible one. i hope that the code of conduct will help guide fair and ethical market practices and increase confidence among the market participants for many years to come. 10. another development is in the area of market reference rate reform. the transaction - based valuations to the benchmark calculations for the thai baht implied interest rates ( thbfix ) will be introduced in the second half of this year, in place of the current survey - based model. the change is in line with the approach adopted by many other countries to reduce the risk of rate manipulation that has become the subject of vast discussions over the past few years. with these reform efforts underway, i hope the thai financial markets will continue to inspire confidence among the market participants and allow us to move through these uncertain times with minimum disruptions. 11. ladies and gentlemen, without further delay, let me conclude by congratulating the winners of the fx awards once again. i would also like to reiterate my thanks to thomson reuters for the invitation as well as for your continuing support as an important facilitator and information provider in the thai financial markets. with several factors both internal and external having materialized over the last several weeks,