The rise in intra-regional trade and investment flows has resulted in greater importance being accorded to stability of the exchange rate against regional currencies. The monetary policy decision-making process at the Bank has also been redefined in which the governance for monetary policy is based on the Monetary Policy Committee to achieve a more optimal process for policy making. Monetary policy communication and increased transparency have also become highly important in this framework. Thus, while the Central Bank's responsibility towards promoting monetary stability conducive to sustainable growth has remained unchanged since the inception of the Central Bank in 1959, the strategies, framework and instruments have evolved substantially to ensure its effectiveness in delivering the desired objective. Financial sector development A key focus of the Central Bank during these five decades has been institutional building, financial market development and putting in place the financial infrastructure. The evolution of the financial system has seen its transformation from a rudimentary financial system that was dominated by the banking sector to a highly diversified financial system, from a highly controlled financial system to greater market orientation, from a highly fragmented system to one that is more consolidated and rationalised, and to a financial system that is supported by an extensive legal regime and regulatory and supervisory framework, and a financial system that is more liberalised with stronger international linkages. Part of the institutional building was the establishment of regulatory institutions that have clearly defined mandates.

The proposed Act will also institutionalise many of the practices that have been introduced in this recent decade which are deemed as critical in ensuring that the Central Bank has the necessary authority and state of readiness to face future challenges. In concert with these, the new Act will further reinforce the existing governance framework with adequate mechanisms to ensure sufficient checks and balances are in place. The governance framework will further facilitate and enhance high quality decision-making in the Bank, institutionalising both existing and new procedures and processes to enhance accountability, professionalism and transparency. The strengthening of governance and accountability will form the prerequisite for the Bank to maintain our public legitimacy and autonomy, as well as to ensure the integrity of the Bank as a public institution in serving the nation's interests. BIS Review 12/2009  5  Conclusion Bank Negara Malaysia's experience during these fifty years in preserving monetary and financial stability and in supporting the sustainability of economic development has seen many challenges. Throughout this journey, we remained focused on what needs to be achieved and the vision of where we want to be. Key to our effectiveness is the internal capacity of the Bank. At the heart of this are the people in the Bank. While the operating environment has changed significantly and the policy focus has evolved, the values that the Bank represents, of integrity, respect for diversity, professionalism and expertise, have been enduring and reinforced over time.