These applications are using a “matchmaking concept” to link customers to trustworthy financial advisers, based on their unique investing needs and personality. In addition, different pricing strategies could also be explored. These should be commensurate with the profile of a prospective Gen Y customer. For example, fees can be adjusted in proportion to a younger customer’s income level, rather than linked to assets under management, as is typically the case now. Flat fees or hourly charges may also be considered for customers with smaller account balances. Conclusion I have spoken at length about the key tenets of a trusted adviser today, but I also understand that transforming the profession into where it needs to be in the future is not something that can happen overnight. Like any other transformation, the effort will require meticulous planning, strategy and sheer determination through the many changes to come. Professionalism, independence and adaptability will all be hard-won victories. While Bank Negara Malaysia stands ready to support initiatives in this direction, it is the industry that must ultimately collaborate to create the business models and value propositions that will define the financial advisory services of the future. The Association serves as an excellent platform for such collaboration, with the potential participation of 618 registered financial advisers’ representatives to date. I welcome the innovations that are to come from the Association and the members.

Factors supporting higher inflows in 2002 include the further liberalisation of domestic regulations especially in the services and construction sectors; open and liberal trade regime; low cost of doing business; overall macroeconomic stability; high quality physical infrastructure; and efficient financial system. The Government emphasis on customizing incentives to meet the specific needs of industries and investors has also provided added stimulus. BIS Review 21/2002  3  Economic, Monetary and Financial Management in 2002 The immediate policy concern in 2002 is to ensure that recovery of the Malaysian economy gathers momentum and that any downside risks are minimised. Given Malaysia's strengthened fundamentals, Malaysia is well positioned to tap the emerging global recovery. Macroeconomic measures have provided a positive environment that contributes to improving the enabling environment for businesses. Malaysia macroeconomic policies are essentially already in place. The focus of policy is therefore on supply side measures to enhance Malaysia's competitive advantage. Emphasis is therefore on policies to accelerate further structural adjustments. Supply side measures aim to address the issues of enhancing efficiency and productivity to reduce the cost of business operations in Malaysia. Improving efficiency requires strengthening institutional infrastructure as well as more specific measures that contribute to increasing efficiency of public services, lowering cost of inputs to be in line with international prices, raising education and skill levels and enhancing use of information technology to widen technical capacities. These measures would essentially reduce operational costs and improve the nation's competitiveness. In this more uncertain environment a stable exchange rate is a major competitive advantage.