one of the top priorities as liquid and well functioning local capital markets would help the domestic financial markets withstand risks in the increasingly more volatile world capital market better. the important tasks in this area include improving the legal and regulatory frameworks to ensure investor protection and increase transparency, enlarging and diversifying the investor base, and finding ways to improve the quality of international and local credit rating agencies ’ over - the - cycle risk assessment. in addition to the above crucial works, i would like to stress the challenge in human resource development as the world becomes more complex. this crisis has notably demonstrated the lack of financial experts who are well - versed in financial innovation and risk management both in the public and private sectors. we need experts who can deal with problems through creative thinking as unforeseen risks likely lie ahead along the future path of integration. the sharing of knowledge and information will crucially help fill the gap among our regional experts. as for regional cooperation, it is essential to further enhance regional surveillance especially in the areas of financial markets. crisis management increasingly needs close regional coordination to strengthen effectiveness of the chosen measures and avoid beggar - thyneighbor actions. and in terms of the scope, we also need to reach out more to our neighbors in south asia and the middle east so that they become the more important partners in both trade and investment spheres. ladies and gentlemen, to conclude, asian economies have come a long way in this sea expedition of economic integration. throughout the journey, our boats have survived many storms. we know that we can lend a hand to one another if our fleet of boats moves together as a group. during this current heavy storm, we learn that we need to be wise in steering the boats to go forward. there is no turning back. after all, we know from experience that all storms will end one day and the more resilient fleets will recover faster and have a better chance of reaching the destination. thank you very much for your attention.

development which will increase competition in retail banking. the thai economy will become more open, with increasing intra - regional trade and investment, due to the growing importance of regional economies in the world economy as well as various trade and investment treaties. hence, financial institutions need to not only build resiliency and ability to adjust to these changes, but also build capacity to serve clients which will have growing needs for international businesses and risk management. moreover, demographic factors point to an aging - society in the future, thus increasing demand for wealth management. the regulatory framework will continue to evolve with due regard to international standards and local needs. indeed, with the current global financial turmoil, each of these challenges will become even more poignant in the future. the implication of these challenges to thai financial institutions is that they must enhance their operating efficiency and risk management, while also becoming more responsive to clients, with fair and transparent treatment. given these challenges, what do we envisage are the key features of the future landscape? we would like to see the banking system that is efficient, competitive, robust, and resilient at all times ; the banking system that is able to support continued economic growth, while providing better access to the underserved segments. different types of banks will operate in each market niche to provide better service via improved access, choice, and pricing. these banks will have enhanced efficiency via increased economies of scale and scope through voluntary mergers as well as expansion of business scope and deregulation, under a modernised legal framework. with this improvement, the local banking system will be better placed to meet the future challenges of market innovation and international competition. ladies and gentlemen, the policy framework to achieve these objectives under the financial sector master plan phase ii comprises three key pillars. firstly, improving the regulatory environment and reducing regulatory and legacy costs. secondly, enhancing efficiency by injection of competition in an orderly manner, and thirdly, by improving financial market infrastructure such as the legal system and information, key to effective risk management. let me turn to these three pillars in more detail. pillar i focuses on the assessment of the regulatory framework and streamlining regulations in order to minimize the burden of banks without compromising prudential imperatives. this will be done by shifting more to a principle - based approach focusing on risk, lowering operating costs stemming from regulation, as well as tackling remaining legacy npls. under pillar ii, the objective is to enhance efficiency by an orderly increase of competition and promotion of financial access