Adnan Zaylani Mohamad Zahid: Speech - National Financial Literacy
Symposium 2023
Speech by Mr Adnan Zaylani Mohamad Zahid, Deputy Governor of the Central Bank of
Malaysia (Bank Negara Malaysia), at the National Financial Literacy Symposium 2023,
Sasana Kijang, 10 October 2023.
* * *
Bismillahirrahmanirrahim
Assalamu'alaikum w.b.t and a very good morning
Emeritus Professor Datuk Dr. Norma Mansor, the President of the Malaysian Economic
Association, Encik Mohamad Hafiz Kassim, Chief Financial Officer of the Employees
Provident Fund, Encik Azaddin Ngah Tasir, Chief Executive Officer of the Credit
Counselling and Debt Management Agency, distinguished panellists, and esteemed
guests.
First of all, let me congratulate the Financial Education Network and the Malaysian
Economic Association for jointly organising this Symposium and thank you for inviting
me to deliver the keynote address.
Just yesterday, we celebrated the announcement of the 2023 Nobel Prize in Economic
Sciences, which was awarded to Claudia Goldin for her contributions to our
understanding of women's labour market outcomes. This prestigious award recognises
the profound impact of research on human endeavour to understand and make the
world a better place. It also illuminates the invaluable insights that research offers in
shaping policy design that improves decision making and solves problems. This is very
much relevant with the context of advancing financial literacy. Take, for instance, the
contributions of 2017 Nobel Prize laureate Richard H. Thaler in the field of behavioural
economics. His work has revolutionised the way policy makers and practitioners
approach financial education worldwide - introducing nudges to guide consumers
towards good financial behaviours and decisions. By highlighting the critical role of
deposit insurance in effectively preventing bank runs, the work of the 2022 Nobel Prize
laureates, Diamond and Dybvig, has also brought to light the relevance of financial
education in equipping consumers with the knowledge and tools to protect their
finances. Today, the work of the newly minted Nobel Prize laureate, Claudia Goldin,
inspires us to maximise the potential of financial education to bridge gender gaps and
advance financial inclusion.
Indeed, providing an impetus for stronger research culture and greater intellectual
discourse is at the heart of the National Financial Literacy Symposium today. Our
collective goal is to harness the power of research to shape the design, implementation,
and monitoring of financial education initiatives. The ultimate aim is to improve the
financial well-being of consumers, through evidence-based and tailor-made initiatives
that target the right segments and solve the right problems for the society.
The Symposium, with its theme of "Empowering Communities for Sustainable
Wellbeing," offers a platform for robust discussions on major contemporary financial literacy
issues, involving senior policy makers, market practitioners and distinguished
academicians. Over the course of this Symposium, we will be presented with
opportunities to discuss and exchange ideas with domestic, regional, and international
experts on three critical issues:
1. First, transforming behaviours: Financial literacy is a key foundation to build
our financial futures. While advancing financial knowledge through education is
essential, it is not enough. The challenge presented upon us today is to cultivate
good financial habits that would lead to positive, long-lasting behavioural changes.
2. Second, driving sustainable change: Conversations surrounding financial
literacy are expanding to encompass a new dimension - namely the pursuit of
environmental, social and governance goals. Financial literacy strategies should
strive to help businesses and individuals better appreciate the far-reaching impact
of their financial choices on society and the environment. It should also equip
them with the tools and capabilities to make informed financial decisions that not
only enhance their well-being, but also align with our collective vision of a more
sustainable and equitable future.
3. And third, enhancing digital financial literacy: The digital revolution has
reshaped how we manage finances, offering both risks and opportunities for
financial inclusion. I am hopeful that the interesting discourse over these two days
will bring us closer to fully unlocking the transformative impact of digitalisation, to
achieve meaningful financial inclusion.
More importantly, as the National Strategy for Financial Literacy (2019 - 2023) nears its
conclusion, I anticipate that the insights gathered in this Symposium would provide
significant input to the design of a new national strategy for Malaysia, moving forward.
In our quest to nurture a strong research culture, we must remember that it extends
beyond conducting studies and publishing papers. Research that ends up on a shelf in
a library will not bring added value to the community. Research must give perspective
to past mistakes, answer present questions, and meet future needs. In this regard, we
should cultivate a mindset of problem-solving and innovating, as well as commit to
translating research findings into practical tools and strategies that elevate financial
literacy.
It is heartening to note that the Symposium has attracted 42 paper submissions, with 10
papers shortlisted through a rigorous evaluation process to be presented at this
Symposium. I trust that these research presentations will offer fresh ideas and
innovative solutions that can bridge the gap between theory and practice, to promote
better financial education outcomes.
I am confident that all your excellent work will inspire many others to contribute
highquality research to advance academic literature in the area of financial literacy. With
continued participation and support from the academic community, it is my wish to see
the National Financial Literacy Symposium become a strong catalyst for advancing
research on financial literacy and well-being, both domestically but also at the global
stage. Perhaps, one day, the Symposium itself could be the breeding ground for quality
research that earns a Nobel Prize in Economic Sciences!
Before I conclude, allow me to reiterate that advancing financial education and literacy
has never been more urgent in today's rapidly evolving economic and technological
landscape. This dynamic environment demands greater agility in our approaches to
empower consumers to navigate financial challenges and uncertainties effectively.
As we gather over the next two days, we are engaging in a mission to drive positive
change. I urge each one of us here to actively participate in the Symposium, by
contributing to the conversations and exchanging ideas that will sharpen our ability to
realise our shared goal of empowering communities for sustainable well-being. With
that, I wish you all a productive Symposium ahead.
Thank you.