This is because regional managers have incentives to optimize the economies of scale and scope through the use of regional factors of production to achieve competitiveness. Moreover, regional managers are likely to promote more regional-oriented investment, which means outward investment, direct as well as portfolio, from one local economy into other local economies within and outside ASEAN. Ladies and Gentlemen, Turning to the dimension of readiness, ASEAN labor mobility pertains only to skilled labor at present. Various country specific regulations continue to prevent completely free labor mobility. While greater mobility should yield substantial economic benefits especially for integration objectives, opponents of labor mobility tend to highlight the short term potential threats, particularly the “brain-drain” away from home countries. Mobility also raises fears relating to immigration and cultural impacts. What then can be done to improve readiness for labor mobility thereby strengthening ASEAN citizenship? For the benefit of further exploration, I would like to propose that we consider a threepronged strategy as part of a sustainable solution to this problem: First, we should try to reduce short and long-term obstacles to labor mobility. It is critical to recognize that greater labor mobility brings greater competition for local professionals. This means that, in the medium and longer term, the “brain drain” is usually offset by remittances and a “reverse brain drain”, which brings wealth, skills, experience, and their business and social networks back home. Therefore, actions are needed to further enhance the free flow of labor through increased use of mutual recognition of professional qualifications.
Tarisa Watanagase: Securing Thailand’s future with capital market development and the role of the Bank of Thailand Keynote address by Dr Tarisa Watanagase, Governor of the Bank of Thailand, at the Thailand Focus 2008, Bangkok, 17 September 2008. *  *  *  Excellencies, Distinguished Participants, Ladies and Gentlemen, Good morning, I would like to begin by thanking the Stock Exchange of Thailand for inviting me to deliver a keynote address at this year’s Thailand Focus. This annual forum, traditionally opened by the Prime Minister of Thailand, has firmly established itself as the event of the year where domestic and foreign investors meet and interact with Thailand’s top policymakers and leading listed companies. It is thus not only my great pleasure but also my great honor to be here. Ladies and Gentlemen, Given the turbulent time we are in at the moment, I am very pleased at the number and the composition of this year’s turnout. Glancing through the list of prospective attendees, I saw participants from Asia, Australia, Europe and North America, representing a large spectrum of investors. This is despite the fact that a number of invited fund managers were forced to cancel their trips due to the declared state of emergency that was lifted on Sunday. Moreover, I see that many of you have been long-time investors in the Thai stock market. All of these are quite reassuring, for they reflect your continued faith in the Thai economy.