His Excellency the Deputy Prime Minister and Minister of Finance,
Secretary-General of the Securities and Exchange Commission,
Managing Director for Asia-Pacific Operations, the CFA Institute
Distinguished Guests, Ladies and Gentlemen,
It is an honour to be here at the Thailand Investment conference, organized by the Securities and Exchange Commission (SEC), the CFA Institute and the CFA Society of Thailand.
The topic for this conference, the opportunities and challenges for Thailand in the evolution and development of Greater Mekong Region, is not only important but also timely. The Mekong Region is an area of strategic importance to the future growth of Thailand and is a key part of the emerging ASEAN Community. This, together with the recent opening up of Myanmar, makes the region an area of great opportunity for trade and investment.
Over the past two decades, the countries in the GMS region have made substantial progress in economic cooperation. Equally important, this area is also an area of peace and stability. These factors have allowed the GMS countries to develop a shared vision of future cooperation for growth and development.
At the Greater Mekong Subregion (GMS) Summit in Nya Pi Taw at the end of last year, we agreed on a new GMS Strategic Framework for the next ten years. One of the goals is the new economic corridor development that concentrates on broadening and deepening of existing transport corridors. This will allow for greater flows of goods and services that will also complement the ASEAN Economic Community, providing strong foundations for economic growth in the region.
One of the key factor in supporting sustainable growth and development is connectivity. I am pleased to learn that there has been significant progress in building the North-South, East-West and Southern Economic Corridors as this will help ensure better logistics and supply chain connectivity. As a country that sits at the center of the ASEAN region, Thailand has a major role to play in supporting connectivity and transport network. That is why we are accelerating the 90 billion US dollar investment in water management and infrastructure development.
For water management, investment includes short term flood prevention investment that is already in place for this year rainy season as well as a new long term water management plan. For transportation projects, the investment in high speed rail links from Thailand to Laos and southern China, will allow for quicker transport of fresh products to markets throughout the region.
I wish to highlight the development of Myanmar’s Dawei deep sea port which Thailand is supporting. Following my discussions with President Thein Sein in New York last week, the two sides have agreed on both a mechanism and road map for the development of Dawei. This project will link Dawei witth Laem Chabang deep seaport on the eastern seaboard. This new linkage between the Indian Ocean and pacific will reduce transportation routes and cost, which will lead to more trade and investment in the region.
On the capital market front, I am pleased to see that the SEC has been active in promoting cooperation with neighboring countries to help develop capital markets in the GMS region. This will allow GMS economies to grow together and ultimately build a more competitive ASEAN market.
A key initiative is the introduction of the infrastructure fund which is a fund raising vehicle committed to the investment of infrastructure development project such as rail transportation, deep sea port, airports, water supply and telecommunications. These projects will benefit all GMS countries as there will be greater capital inflows into the GMS economies leading to the growth of both the real sector and capital markets. More importantly, the fund will help limit the burden on government’s budget and public debt.
Ladies and Gentlemen,
In conclusion, I have great confidence in the GMS region and that all GMS economies will continue on this path towards sustainable growth and economic prosperity. On Thailand’s part, we are proud to have played an active role in driving regional growth and development. Looking forward, we intend to contribute even more to the development in the GMS region.
Lastly, I would like to thank the SEC Thailand, the CFA Institute and the CFA Society of Thailand for their efforts in organizing this event. I wish you all a very successful and enjoyable conference.
Thank you.