Nor Shamsiah Mohd Yunus: Advancing digitalisation for recovery,
sustainability and inclusion
Speech by Ms Nor Shamsiah Mohd Yunus, Governor of the Central Bank of Malaysia (Bank
Negara Malaysia), at the MyFintech Week 2022, virtual, 24 January 2022.
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Assalamualaikum, bismillahirrahmanirrahim and welcome to MyFintech Week 2022.
MyFintech Week is an important event for Malaysia's financial sector. It is here where
changemakers from finance, technology, government, business and other disciplines come
together to discuss how we can shape the future of finance through technology and innovation.
The theme of this year's conference is "Advancing Digitalisation for Recovery, Sustainability and
Inclusion". Over the last two years, we have seen an accelerated pace of digital adoption across
government, society and business unmatched in recent history. Against this backdrop, this
theme aims to tap into the enormous potential of digital technology to transform finance and help
build a more inclusive, resilient and sustainable economy of the future.
Over the next five days, over a hundred speakers will discuss a broad range of issues ranging
from environmental sustainability, the future of money, emerging technologies and the financial
health of consumers.
At MyFintech Week 2019 two years ago, I spoke about the dynamic shifts that the world was
undergoing, and in turn, the opportunities and risks they presented to the financial industry.
These included changes in the global economic order, climate change, rising income inequality
and the advancement of technology.
In the two years since, the severe global health and economic crisis faced by the world has
brought these trends into even sharper focus. For example, the pandemic has highlighted and
deepened long-standing vulnerabilities in Malaysia and many places around the world. These
include the fragile state of social protection systems, under-investments in health and
infrastructure, and the need to improve our education system. As a result, vulnerable groups
bore much of the economic, social and health cost of the pandemic and they continue to be at
risk. This will affect economic and social resilience and thus not only our prospects to recover
and bounce back from the pandemic, but also to deal with other existential challenges further
ahead, like those in the environment and climate.
On the bright side, the pandemic has demonstrated the power and potential of finance to
address the pressing problems of our time. The financial system has been resilient, with the
ability to provide critical support to households and businesses during the difficult times. Digital
financial services like electronic payments have made it easy for people and businesses to
continue making transactions in a low touch setting, with even greater ease. The financial sector
has also stepped up to provide various forms of relief to customers over the last two years, such
as by giving borrowers breathing space and helping them get back on their feet while ensuring
that depositors' interests are not jeopardised. All this was made possible on account of efforts in
recent decades to develop and strengthen the financial system.
In the same way, the financial sector will continue to have a central role in providing solutions to
the challenges ahead - be it in bringing about an orderly transition to a greener economy, or
helping households and businesses become more resilient to financial shocks in an increasingly
dynamic and fast changing economic environment.
And so, while we have been busy directing our minds and energies dealing with the here and
now of the pandemic, we have not stopped thinking about the future.
Today, we will be launching the Financial Sector Blueprint 2022-2026. It sets out Bank Negara
Malaysia's vision for financial sector development over the next five years, and our broad
strategies for getting there. This includes the vision for the financial sector to be agile and
resilient to support the transition of our nation to its next stage of development.
We have identified five priorities that will anchor our efforts - working together with the
government, industry, business and social enterprises and other stakeholders - to promote a
financial system that will secure long term growth, planetary health and shared prosperity. The
five priorities are:
1. First, funding Malaysia's economic transformation;
2. Second, elevating the financial well-being of households and businesses;
3. Third, advancing digitalisation of the financial sector;
4. Fourth, positioning the financial system to facilitate and orderly transition to a greener
economy;
5. And fifth, advancing value-based finance through thought leadership in Islamic finance.
We are excited about the Blueprint, and we look forward to engaging further and working with you
to transform these aspirations into reality. But before that, allow me to share with you our
approach and thinking behind this Blueprint. I will make four key points that have informed our
approach and thinking.
First, with the benefit of two decades of development of the financial sector behind us, we are
building on strong foundations as we look to the future. This means that we believe the financial
industry is well positioned to play a stronger role in leading transformation and changes at the
industry level.
Second, as the shifting trends around us become more pronounced, we are committed to foster
conditions for greater market dynamism to respond to the changing needs of the economy and
society. This calls for more and diverse actors in the financial system, operating within
welldefined parameters that encourage healthy competition and innovation, alongside prudent and
responsible conduct.
Third, it is our firm conviction that the purpose of finance is to serve the needs of the real
economy, improving lives and livelihoods. Ultimately, financial services must help people and
businesses grow their wealth, engage in trade and commerce, and build resilience. It must help
customers manage financial risks and adverse events - including climate and environment
related risks to secure lasting prosperity. To this end, the Blueprint seeks to align the financial
sector with the national aspiration to not only become a high value-added and high-income
economy, but also lay a solid foundation for a more dynamic, inclusive and sustainable
development path.
Fourth, we continue to be firmly anchored on the Bank's monetary and financial stability
mandates. As we have always emphasised, sustainable economic growth can
only happen within a context where monetary and financial stability is preserved, and where the
integrity of the financial system is safeguarded.
This Blueprint is the fruit of the labour of many, both from within and outside Bank Negara
Malaysia. For this, our heartfelt thanks goes out to all who have generously given ideas, insights
and time to make this Blueprint possible. I would also like to thank Yang Berhormat Senator
Tengku Datuk Seri Utama Zafrul Aziz, Minister of Finance for gracing this event and launching the
Blueprint.
While producing the Blueprint has been a lot of hard work, the greater task for us is to turn its
vision into reality. This requires us to work and think outside the box as the nation enters a new
stage of development. It is our desire and belief that the financial sector will continue to serve
Malaysia well in the years ahead, doing its part to improve the well-being of people now and for
the generations to come.