Financial market conditions are expected to be increasingly complex with rapid changes in technological advancements. The ever-changing geopolitical positioning also continuously shifts investment priorities and risk appetite. Closer to home, while domestic growth is expected to remain sustainable, many uncertainties and challenges persist, and thus it is critical to ask ourselves, how do we respond? With the current 10-year Financial Sector Blueprint approaching the end of its horizon in 2020, the time has come to chart our path for further development. At the Bank, we are in the midst of 2/4  BIS central bankers' speeches  much research, analysis and formulating possible paths for our future. Based on this, we will be looking to engage financial markets stakeholders to set the framework for market development over the next five years. We have set a shorter horizon, acknowledging that in this era, changes occur rapidly and the longer horizon is rife with greater uncertainty than before. While these discussions are ongoing, I wish to share three main focus areas for the next plan as follows: Firstly, given the active adoption of advanced technology in all aspects of our lives, the digitisation of the financial markets is not only an obvious step forward but an inevitable one. With evolving business practices and economic activities, there is urgency for us to adapt and elevate our infrastructure to ensure that our markets remain competitive and dynamic, while preserving an environment of financial and market stability.

Similarly, the Appointed Overseas Office framework which was expanded in 2017 has facilitated wider access to the Malaysian market. The launch of the AOO pilot programme in August this year has further enhanced market liquidity and reduced transaction costs for larger volume transactions by allowing inter-AOO squaring of positions for more efficient price discovery. With 168 AOOs from 22 banking groups operating in 36 countries, market access to the onshore Malaysian markets continues to grow. To meet the need for continuous communications with investors, market participants and intermediaries alike, the Bank developed dedicated webpages for investors interested in the developments of the Malaysian financial market. There are continuous updates on what is new in our markets, and important updates on Foreign Exchange Administration rules that market participants may use as a point of reference in their ringgit dealings. Many of these initiatives focus on increasing efficiency, access and transparency. However, the reality is that markets will always be imperfect. In the 1970s through to the 1990s, we were told that financial markets can be relied upon to be efficient, that prices will reflect all available public information and hence appropriately reflect the fundamentals of an instrument or asset. Regulators were asked to leave markets alone. Liberalisation and deregulation were the two key themes and policy push on emerging markets that would enable the development of liquid financial markets. Then in the 1990s, the Asian Financial Crisis happened. Together with liberalisation and deregulation came excessive speculation and destabilising capital flows.