On the third elements, rapid pace of globalization and change in global trade pattern have raised challenges to our economies and thus, shed lights on the necessity to improve the efficiency of regional production processes. Thus far, many industries in the GMS have stepped up their efforts to move up the value chains of production as well as integrate into regional supply clusters to better utilize the abundant resources. Nowadays, the GMS has shifted its focus from primary products to intermediate and final goods through the employment of advanced technology and high-skilled labour. This allows the GMS to continually expand the production capacity and speed up innovations that would foster the long-term regional economic growth going forward. Ladies and Gentlemen: 10. This journey of transformation is not a bed of roses and it could take some times to bear fruits. Yet, there are opportunities to be seized in pursuit of long-term sustainable development. With promising prospects await, what I expect to see in a very fast-approaching future is the interplay between different facets of development to strengthen the health of the economy and keep it well in balance. These recipes may sound familiar, if not already overheard. The key enablers that I view important to warrant the GMS’s smooth transformation towards strong growth foundation mentioned above include (1) infrastructure (2) in-house technological advancement and (3) sound financial system. 11.
In this regard, private sector’s improvement in technology and innovations, in tandem with other infrastructure development, can become a tailwind to support the GMS to overcome technology stagnation and provide a competitive edge to the private sector. This should also enhance the intra- regional trade and investment capabilities. 13. Last but not least, financial system can act as a blood-vein that nurtures the economy. We might not realize the necessity of having a healthy blood- vein system in our body. But if there is a blockage, one could experience a detrimental malfunction of the brain, and stroke may occur. The same applies to our economy; efficient and accessible financial system will ensure smooth and solid transformation of the economy. At this juncture, financial institutions are a key in keeping the efficacy and health of the financial system in check. On one hand, financial prudence through enhanced risk supervision and management will provide a strong backdrop for improvement in financial system. On the other hand, the favorable financial system should also be underpinned by financial inclusion, which is analogous to having the blood-vein reaches all organs in our bodies. As I previously pointed out, increasing access to financial services will bolster economic dynamism where vast financial opportunities can be better tapped by private sectors. Ladies and gentlemen, 14. To end my remarks today, allow me to reiterate that these key enablers will be necessary to support the areas of transformation for the GMS.