m r pridiyathorn devakula : financial markets and new financial instruments opening address by mr m r pridiyathorn devakula, governor of the bank of thailand, at the seacen - imf institute course on financial markets and new financial instruments, bangkok, 6 september 2004. * * * dr. subarjo joyosumarto, mr. sunil sharma, distinguished speakers and participants, it is indeed a pleasure for me to be here this afternoon to officially open the seacen - imf institute course on financial markets and new financial instruments. on behalf of the bank of thailand, i would like to extend a warm welcome to everyone of you to bangkok. today ’ s course is the second of three seacen courses that the bank of thailand plans to host this year. we are pleased to be given the opportunity to support the work of the seacen centre, and all its member central banks. these series of courses are indeed most topical, as the global economic recovery gathers momentum, financial market activities also pick up, along with innovative financial practices and instruments. the imf recently adjusted its forecast of global gdp from 4. 6 percent to 4. 9 percent, the highest growth rate in nearly three decades. economic performance in asia has also been in sharp contrast to the situations we faced four or five years ago, reflecting the synchronized recovery of the global economy. with the strong economic recovery comes the demands from firms and enterprises for more sophisticated and efficient services from their financial intermediaries. this is expected to happen in asia as well. the authorities therefore need to be mindful of the inherent risks associated with new financial instruments and practices. to promote growth and financial stability sound macroeconomic and prudential policics are required, as well as vigilance in the supervision and regulation of markets and intermediaries. these include being better prepared to withstand increased volatilities in financial markets and improving the structural resilience of the financial system. as we all know, the cost of financial instability can be grave not only for the country in which thc financial turmoil emerges, bot also for the international financial system as a whole. we saw this in the mexican crisis in 1994 / 95 and again in the asian crisis in 1997 / 98 where international investors ’ confidence was undermined thus imposing significant economic and social costs in all affected countries. the globalisation of markets and the increasing importance of financial stability have prompted central banks to be active and vigilance in

prasarn trairatvorakul : the asean economic community ’ s impact on the greater mekong subregion ’ s economies keynote address by dr prasarn trairatvorakul, governor of the bank of thailand, at the euromoney conference “ the greater mekong investment forum ”, bangkok, 12 june 2014. * * * excellencies, honorable speakers, distinguished guests, ladies and gentlemen, 1. it is an honor for me to be back here at the euromoney greater mekong subregion investment forum. let me thank the organizers for inviting me to speak at such a distinguished forum once again. this conference takes place at an important juncture as we are on the eve of the asean economic community which will be launched at the end of next year. my remarks today will focus on how the aec will have meaningful impacts on the gms economies. also, i will share with you some thoughts on how we can overcome challenges to capitalize on the region ’ s growth and prosperity. 2. the gms has become one of the most vibrant regions in the world, transforming itself into a new investment frontier. the global attention on this region is reflected in the large inflows of foreign direct investment, which have increased dramatically in the past two decades. according to world bank statistics, the fdi inflows to the clmv countries over this period increased forty - fold to around 13 billion dollars in 2012. 1 this wealth of investment opportunity has been underpinned by the smooth transition to market - based economies, the rich and diverse resources as well as the improvement of intra - regional logistics. 3. most importantly, we are in an exciting time for the gms when the aec draws closer. as most gms countries are members of the aec, the gms will significantly benefit from the growth opportunities of the aec in the coming years. 4. with integrated markets being forged under the aec, this will greatly benefit the gms through a more interconnected production base. let me give you three key examples where i see this will materialize : 5. first, on the tariff reductions. much has already been completed here, with the group of asean - 6 countries, 2 including thailand, having already removed tariffs for almost all of our products since 2010. the plan according to the aec blueprint, will see clmv countries ’ tariffs being removed by 2015. the benefits will of course multiply throughout production