klibor which has no direct correlation with the changes in the rental rate. actively promote the role of the market players the islamic financial services industry is expected to benefit from the recent increase in the number of players following the launching of islamic subsidiaries, the issuance of foreign islamic banking licences and the measures to issue additional takaful licences. the entrance of these players will contribute to an active participation in both the primary and secondary markets for islamic financial instruments. ladies and gentlemen, i hope this seminar will crystallize positive ideas to pave the way and contribute towards the development of a more vibrant and dynamic islamic financial system. i wish to take this opportunity to thank the speakers for accepting our invitation to share their invaluable knowledge and experiences in this seminar. the participation by researchers and practitioners in the islamic financial system is also important. on this note, i wish you all a successful seminar.

the euro crisis. in fact, there are already signs that asian exports, thailand ’ s included, are slowing. amid a slowing global economy, this drag on growth is unavoidable in the short - term. to grow out of the crisis and survive the shocks from outside, thailand must look within and unleash domestic engines of growth. long - term investment in productive infrastructure is one key engine of growth. another is domestic structural change spurred by two drivers of change in the region. the first driver of change is growth in china and the attendant rise of the chinese middle class and demand for a broader range of imported goods and services. chinese exports will also grow in sophistication. the second driver of change is trade liberalization in the region – such as free trade agreements with china and india as well as the asean economic community, or bis central bankers ’ speeches aec. aec, in particular, goes beyond free trade and also has the potential to foster not only goods and services integration but also cross - border labor and investment flows. because of the sheer size of these markets – china, india and aec – the regional pattern of production will change considerably to cater to new demands while leveraging on new comparative advantages and supply chain synergies. uncompetitive firms have to either upgrade themselves, or close down and free up labor resources to more competitive firms. this reallocation process implies that the country makes better use of labor resources and achieves higher productivity. ongoing financial sector reform will also build financial sector resiliency. thailand ’ s financial sector master plan, now in its second phase, continues, and focuses on liberalization through increased competition, raising efficiency, and strengthening the financial infrastructure. our research shows that the gains from structural change can be considerable although adjustment costs, in terms of the reallocation of labor and capital, will also be significant. now we arrive at the third and final question. given the euro crisis and thailand ’ s prospects for growth, what should monetary policy do? the dilemma here is how to bridge short - term stabilization with long - term goals of structural change. the challenge for policy is to maintain an overall framework where the trend of increasing economic integration can continue while containing crises. given our baseline scenario of a prolonged recovery without a liquidity seizure we lean towards long - term goals – for example, maintaining capital flow liberalization, financial sector liberalization and market - led exchange rates – but with a readiness for monetary stimulus should