Zeti Akhtar Aziz: Launch of International Centre for Leadership in Finance
Welcoming address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Official
Launch of International Centre For Leadership In Finance (ICLIF), Kuala Lumpur, 28 October 2003.
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Yang Amat Berhormat, Dato Seri Dr. Mahathir, Prime Minister and Minister of Finance,
Distinguished Guests,
Ladies and Gentlemen,
It is my great pleasure and honour to welcome you to the official launch of the International Centre for
Leadership in Finance (ICLIF). This Centre is being established with the objective of providing a
focused and co-ordinated approach towards the development of world class leaders in the financial
services sector in Malaysia and in the region.
Ladies and Gentlemen,
The unprecedented economic and financial transformations in this decade have created new
operating environments that demand new leadership skills. This is most evident in the financial
services sector which has become increasingly more complex, more competitive, more uncertain and
ambiguous and more challenging.
It is therefore essential to have leaders who are able to see the new emerging opportunities, deal with
the high level of unpredictability and navigate through turbulent conditions. The pressure on leaders
has become increasingly more immense. In emerging market economies where our aspirations are to
elevate our level of performance and development, the demands are even greater. Indeed, in this new
environment the role of leadership has changed. Our objective in the establishment of the International
Centre for Leadership in Finance (ICLIF) is to contribute to this process of developing a generation of
leaders in the financial services sector that will achieve our objectives in the development of the
financial sector in particular, and our overall economic prospects in general as we advance forward in
this new environment.
Ladies and Gentlemen,
We are most honoured today by the presence of Yang Amat Berhormat Dato Seri Dr. Mahathir
Mohamad to launch our International Centre for Leadership in Finance. This is particularly special in
view of the leadership he has demonstrated for a period of more than two decades in bringing
Malaysia to our present level of development and prosperity. The most significant being his leadership
in overcoming the 1997-1999 financial crisis experienced by our region. It represents a lasting legacy.
In the most testing of times during the crisis, critical decisions were made with the firm conviction that
it is a country's legitimate right to defend itself during extreme conditions. At that time, we were able to
avoid being put under an IMF programme as we were in a position to meet and repay all our foreign
obligations. We have since emerged from this turbulence much strengthened and on a solid and
steady growth path. Indeed, this is one debt that the country will not be able to repay. Malaysia will
always be indebted to you, Yang Amat Berhormat, for your leadership and your vision.
Ladies and Gentlemen,
The financial sector in our region has now reached a new stage of development. Over the years, the
role of the financial system has evolved, facilitating the various stages of development and growth.
Increasingly, the financial services industry is also becoming a source of growth, especially as several
countries in the region are moving towards a knowledge-based and services-led economy. In the
process, the dynamic changes taking place are also being driven by technological advances and an
increasingly competitive environment.
As financial restructuring and reforms progress to a more advanced stage, financial institutions are
also moving on to make the necessary adjustments to become more productive, innovative, and
strategically more focused. Efforts are now focused not only on the creation of a sound and resilient
financial sector but towards institutional development and capacity building of the financial sector to
elevate it to a higher level of performance, efficiency and excellence. This represents an important
phase in the development of the financial sector as highlighted in our 10-year Financial Sector Master
Plan that was released almost three years ago. It represents an important development prior to
moving towards a more deregulated and liberalised environment. In this context, we are envisaging
forward-looking financial institutions that will be able to face the challenges of financial liberalisation
and globalisation as we progress into our next stage of development.
In this context, leaders need to be visionary to see future trends focused on organisational vision, to
stay competitive and be able to adapt rapidly to changes. In addition leaders need to take into account
the corporate social responsibility so that the profit mindset is balanced against the objective of
longterm sustainability. When we talk about enhancing leadership capability we are talking about leaders
who are continuous learners, who are on the cutting edge of excellence, leaders who have strong
convictions and beliefs, and yet having humility and recognising the need to reinvent themselves and
inspire their organization to adapt to the new challenges and changes. This is vital if the financial
services sector is to forge ahead and remain at the forefront of new innovations, an element that is
critical to securing long-term competitiveness. We need the remarkable force of corporate leaders to
fuel the drive towards long-term growth and stability. We need dynamic leaders to push the frontiers of
excellence - leaders who are constantly learning and possess the courage to take on new challenges.
In this process, avenues for continuous learning must be actively sought.
The establishment of ICLIF is part of our commitment towards providing such an avenue to enhance
our leadership capability and develop world-class leaders in the financial services sector. Towards this
endeavour, the Centre is currently in the process of developing a unique leadership competency
model that will analyse and understand what makes for great corporate leaders in our regional context.
At the same time, the Centre is putting together a world-class Global Leadership Development
Program (GLDP) with leading consultants and drawing faculty from the best schools in the world. The
Global Leadership Development Program represents ground-breaking design in terms of an executive
education program. By drawing faculty from not just one or two, but up to five leading institutions, the
Centre will be able to combine the best ideas and thoughts in the world on the various key leadership
issues and concerns. The Centre's role will not be to replicate the roles of institutions of higher
learning, but rather to facilitate and provide specific, directed and targeted learning based on the
requirements of our industry.
In addition to its Board of Directors, the Centre will also be governed by an International Advisory
Panel comprising eminent personalties. In the process, participants will benefit from the best of all
worlds in terms of the latest thinking on leadership issues. It is envisaged that the Centre will also
serve to complement and supplement the existing capacity building facilities in the financial and
corporate sector to become a regional centre of excellence for leadership training in finance. The
Centre aims to reinforce the notion that investments in human capital, including the pursuit of
leadership excellence, is a continuing process in this ever-changing environment so as to enhance the
calibre of our human capital in the financial and corporate sector in meeting the challenges ahead as
we advance forward in this new millennium.