now to the domestic economy. this year a theme that has kept recurring in my presentation of the thai economy is that of risks and adjustment. this is to say that, for thailand, this year has been a year of greater risks and the key theme has been adjusting to risks as the global economic and financial environment has become less helpful. the key external pressure an the thai economy throughout this year has been the higher oil prices, the higher global interest rates, and the potential impact an our exports of a slowing chinese economy. this year, we also have our own domestic challenges. these include the two episodes of bird flu that have affected production and exports of poultry, and the uncertainty linked to the situations in the south which has importantly affected consumer confidence and business sentiment. so, for the most part, the performance of the thai economy this year is essentially a story of how the domestic economy has been adjusting to the risks that emerged. this includes adjustments in the domestic financial markets and the real economy, as well as the implications for economic and financial stability. let me go through each of these points in turn. as for the domestic financial markets, the adjustment has been led by the repricing of financial assets that has been underway since the second quarter. yields on long bonds have been rising. equity prices have declined. there have been some outflows of short - term capital, and the baht has weakened from last year. in all, the adjustment has been smooth and orderly, and has benefited from the flexible market mechanism that underpins the movements of the economy ’ s key prices. and for the real economy, the adjustment has been accompanied by a moderation in growth in the first quarter to 6. 5 percent, led by the slowdown in agriculture because of drought and the bird flu. output of manufacturing and services, however, has continued to expand robustly. on the demand side, the dampened consumer confidence has moderated the momentum of private consumption in the first half of the year, but private investment and exports have expanded well and have been the key drivers of growth so far this year. on this point, it is comforting to note that domestic demand expansion has benefited increasingly more from the pick - up in credit extension, driven by ample liquidity in the system. private credit growth was a high 9 percent at end - june. turning to economic stability, with continued growth, pressure on resources has become more visible this year with output gap continuing to close, inflation rising, the trade surplus

pursued. central banks in advanced economies are widely anticipated to have already halted rate hikes and could be easing later in the year. these developments are expected to alleviate pressure on the ringgit. furthermore, the past two years of depreciation, which we have emphasised time and again as not reflecting domestic economic fundamentals and performance, have likely resulted in an undervalued ringgit. the undervaluation and the easing of global financial conditions in 2024 thus set up for a recovery in the ringgit. the current undervaluation should be attractive for investors. bloomberg consensus forecasts point towards a stronger ringgit in 2024. favourable economic fundamentals, including plans for structural reforms to materialise, will lend further support to the ringgit in the longer - term. we can also do our part. the reality is, our individual actions collectively also contribute to the ringgit's performance. let's then play an active role supporting the ringgit. allow me to share just three suggestions. first, for exporters and importers. indeed, there can always be additional gains from holding foreign currencies, taking advantage of the trend and the higher foreign interest rates on offer. but these actions will not help the ringgit. and relying on foreign exchange gains cannot be a sustainable business strategy. perhaps it's then time to look through these gains and focus on the actual business at hand, which could be more fruitful. manage your foreign currency and ringgit conversions, with a view to best protect and support the ringgit. second, corporates, investment houses and institutional investors on the other hand should focus more on domestic investment. indeed, now there is a compelling case to direct investments domestically. we have highly liquid government and corporate bond markets with attractive yields and a historically undervalued equity market presenting attractive investment opportunities. there will also be many growing opportunities for investment in the new and emerging sectors. third and finally, all of us as everyday consumers can also do our part. this includes a malaysia - first attitude, from purchasing goods, services, travelling for holidays and even investing in domestic unit trusts or ringgit - hedged investments. as we each do our part to boost our domestic economy, a strong ringgit recovery is within our grasp. 2 / 5 bis - central bankers'speeches ladies and gentlemen, the malaysian financial system is ready to play its role in intermediating investment and economic activities. i am glad to see that on many fronts,