It will require concerted, deliberate and sustained efforts by all parties concerned. Finally, the progress made in advancing financial literacy needs to be tracked. This will allow for insights to assess the capacity of the financial system to handle greater levels of innovation and free market practices. 2  BIS Review 85/2005  In Malaysia, a comprehensive approach has been adopted to enhance financial literacy in the country. The Financial Sector Master Plan, which was launched in 2001, includes a 10-year consumer education program. This agenda includes infrastructure and institutional capacity development in the areas of financial education, advisory services, distress management and rehabilitation. For this purpose, the Central Bank in partnership with the financial industry and other government agencies, has introduced the Financial Mediation Bureau, Deposit Insurance Scheme, Basic Banking Services Framework, Credit Counselling and Debt Management Agency, as well as created a new class of licensed Financial Advisers. These initiatives are also being reinforced by a higher level of transparency and disclosure. A series of consumer education programs has been introduced, such as Bankinginfo and Insuranceinfo, both of which are delivered through various channels. These include road shows, pamphlets at the branches of financial service providers and dedicated Internet sites hosted by the central bank. Savings and education programs are also being promoted in schools. More recently a one-stop centre was established within the Central Bank for the public to obtain information about financial services in Malaysia and to provide face-to-face customer service on general enquiries and complaints.

The main responsibilities of the Central Bank includes the formulation and implementation of monetary policy, ensuring the soundness and stability of the banking system, and finally ensuring the integrity and reliability of the payments systems. In all these areas, the actions of the Central Bank have direct implications on the business community and the public at large. The ultimate aim of the policies are to make the economy strong, and to ensure the health of the financial system that is vital to supporting the economic growth and development process. Knowledge of what the Central Bank does and the reasons for its actions are essential for the efficient functioning of the financial markets and the effectiveness of the policy initiatives. In all these areas, the behavior of businesses and consumers at large are important in determining the final outcome. Having the knowledge and understanding of the issues would better equip consumers to manage their financial matters and to make well informed decisions regarding their own finances. In addition, it would also contribute to the soundness of the banking system and the efficiency of the payments system. In this current environment, the issue of financial literacy from these perspectives has become more urgent, particularly in the emerging market economies of Asia, where household consumption is becoming an important driver of growth. The expanding cumulative domestic market in Asia is becoming massive, a factor that has been important in facilitating intra-Asian trade and thus driving the economic integration of the Asian region.