As a case in point, the Bank of Tokyo-Mitsubishi recently acquired a microfinance bank in Cambodia, using the Bank of Ayudhya in Thailand as a base for the acquisition. Such financial linkages will serve Japanese enterprises and tap opportunities in one of the region’s exciting emerging markets. The strong presence of Japanese financial institutions in the region will surely be an important conduit for non-financial companies in Japan to leverage on the promising prospect of the GMS region. Ladies and gentlemen, We have indeed come a long way and have gone through several tests of external disturbances. Let me assure you that the Bank of Thailand will continue to strengthen our macroeconomic resilience and stay firmly committed to financial stability as one of our principle mandates. We also embrace continuing reforms and upgrades in the financial sector to remove obstacles to the development of regional trade and investments. We are confident that Japan, Thailand and the region can mutually benefit from broader and deeper linkages, both economically and financially. With stronger economic and financial ties, I am excited to see how we, together, will move the region forward and continue to work closely in the global arena. Again, it is my great honor to be here tonight with our close and longtime friends who have supported Thailand’s economic and financial development. Thank you very much for your friendship, your commitment, and your contribution to the Thai economy. I look forward to further cooperation between our countries for many years to come. Thank you very much.
Allow me to highlight some of our resilient features: •  We continue to have a strong current account position with the current account last year registering a surplus of 9 percent of GDP, or around 35 billion US dollars, thanks largely to a substantial saving on energy imports. •  Our international reserves have been at a healthy level, standing at three times of the short-term external debt we hold. •  Our capital markets are relatively less exposed to the risk of capital flight, with foreign holdings at less than 9 percent of the Thai government and Bank of Thailand bond outstanding, compared with more than 30 percent in some other emerging markets in the region. •  External debt of the Thai corporate sector has been relatively low, hovering around 13 percent of total corporate debt. And, most of the external debt belongs to large corporations which have used the proceeds to finance their investment aboard and are able to manage their exchange rate risks sufficiently well. As a result, the currency mismatch does not pose a threat to the Thai corporate sector, unlike what they experienced during the 1997 economic crisis. Taken together, the strength of Thailand’s external position on many fronts has helped the Thai economy withstand the recent global financial turmoil, and would continue to provide cushions against possible external shocks in the future. Nevertheless, it would be a mistake to be complacent with where we stand and fail to anticipate greater challenges ahead.