Traditional institutions and conventional policy-making have less influence than before. This calls for a new approach to governing and policy making, one that combines high-level strategic clarity with experimentation and dynamic implementation at a micro level. Since 2000, the Government has produced 39 blueprints, roadmaps and master plans, including the Financial Sector Blueprint. This is more than double the number of master plans introduced between 1970 to 1999. From a different perspective, over the last 17 years, the country introduced two blueprints a year, compared to only one plan in every two years during the period 1970 to 1990. There is no denying that the plans have laid a great foundation for the nation to move forward. Indeed, the Economic Transformation Plan played a catalytic role in spurring, what we at the Bank like to refer to, as the Investment Renaissance period between 2011 and 2014. Going forward, there is a critical need to overlay these existing master plans and blueprints with micro-cellular transformations. We have been advocating this approach at every opportunity available. It is just as relevant for industry, including the banking sector. Very often, implementation pitfalls caused the failure of the strategic vision of leaders. I believe this gap can be bridged if each component, layer, and cell, within the ecosystem, whether at an institution or 5/6  BIS central bankers' speeches  industry level, is empowered to support and even lead transformation.

The revisions also aim to better support the development of domestic expertise and capacity in core functions of the banking industry. Third, a shared security operations centre for the financial industry (FINSOC) will be established in coordination with the industry to support the continuous and proactive monitoring of cyber threats. Finally, by 2018, we hope to operationalise an industry-wide implementation of e-KYC for the on-boarding of customers. Further progress has also been made on the development of the policy framework for domestic systemically important banks (D-SIBs). Survey results collected from banking institutions and financial holding companies earlier this year are currently being analysed and will facilitate further refinements to the assessment methodology to identify D-SIBs. This will form part of the D-SIB policy framework which will be released later this year for industry consultation. Beyond the immediate term, the Bank is also looking at introducing enhanced standards on measuring capital requirements and outline expectations on recovery planning, in line with global reforms. In doing so, we will engage the industry on the potential domestic implications, and make adjustments where necessary to ensure that these standards are phased-in seamlessly. A World of Contrasts: Shifting From Macro Masterplans to Micro-Cellular Transformation Malaysia’s transition to a high-income economy will require careful attention to the context in which policies are developed and pursued. In particular, behavioral changes shape the way people live and work. Thanks to globalisation and digitalisation, individuals are much freer to dictate their living, working and financing arrangements.