It also strengthens the network among the workforce of the industry in the region. On this day, all of you have indeed achieved an important step forward in your professional career. The skills and knowledge acquired in achieving your qualifications will enhance your ability to contribute to the performance and development of the insurance industry. In this increasingly competitive and challenging economic and financial environment, knowledge has emerged as a critical factor in defining competitive advantage and success. Ladies and Gentlemen, Significant market developments continue to exert their influence in shaping both the global and the domestic economy. These developments include the increased pace of globalisation, the emergence of new technologies and the increasing importance assigned to the value of knowledge as a determining factor in a country's performance. As competition intensifies, and rapid and dynamic changes take place in the financial environment, the areas of comparative advantage will change. In recognition of these trends, Malaysia has allocated significant resources and attention to human capital development to strengthen the intellectual capacity of our nation. Indeed, human intellectual capital plays a pivotal role in driving future performance and competitiveness. In the financial services sector, the financial landscape will continue to evolve with the proliferation of financial products and services in line with the rapidly changing requirements of the economy and expectations of businesses and consumers. These trends are particularly evident in the insurance industry. Indeed, over recent decade, the insurance industry has seen significant progress and expansion.

However, the reverse can also apply: stock market developments also have some significance for the shaping of monetary policy. The price of  2/7  various assets, such as shares, is important in itself for the dynamics of a country’s growth and inflation trends. If, for instance, share prices rise, this stimulates household consumption and corporate investment, and vice versa. This in turn affects price trends. Thus, the stock market, like the housing market, can affect the Riksbank’s monetary policy decisions. Since the 1960s and 1970s, Swedes have been saving more and more in shares, both directly and via mutual funds and insurance, and the market has developed considerably during this period. The return on shares has been very good, seen over the past 30 years, but it has also been something of a roller coaster ride. Here I am thinking of periods of overvaluation, which have been followed by sharp price falls, for instance in connection with the financial crisis and the later IT bubble. Despite these periods of falling share prices, the percentage of shares in household wealth has increased, and stock market developments have thus become increasingly important for households’ consumption decisions and for inflation. Another reason to be interested in the stock market is its significance for efficiency and thereby for growth. An efficient securities market fulfils many important functions, for instance, as information bearer, channel for risk management and as mediator of capital.