Zeti Akhtar Aziz: Launch of the Financial Mediation Bureau Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the launch of the Financial Mediation Bureau (FMB), Kuala Lumpur, 20 January 2005. *  *  *  Bismillahirrahmanirrahim, YB Tan Sri Dato’ Seri Haidar bin Mohamed Noor, Pengerusi, Biro Pengantaraan Kewangan Dif-dif kehormat Tuan-tuan dan Puan-puan hadirin sekalian Assalamualaikum warahmatullah dan salam sejahtera Our financial landscape is continuously being redefined. The objective is the development of a financial system that best serves our nation. To achieve this, a comprehensive approach has been adopted, addressing all the key elements and building blocks in the respective components of the financial system so as to form a solid foundation on which an effective, efficient and resilient financial system could be progressively built. An important component in the system that has not been neglected has been the consumer protection framework. The requirements and expectations of consumers are changing rapidly in tandem with increased education levels, growing wealth and greater affluence. Consumers are becoming more discerning and demand better product choices, more efficient delivery channels and more customer centric practices from financial institutions. These trends have become important in reinforcing the more competitive environment in the financial services sector. Tuan-tuan dan puan-puan, Antara komponen utama Pelan Induk Sektor Kewangan ialah usaha meningkatkan kesedaran dan kefahaman pengguna tentang produk dan perkhidmatan kewangan, di samping mewujudkan infrastruktur sokongan untuk melindungi pengguna, serta mengukuhkan rangka kerja kawalselia untuk meningkatkan tahap ketelusan.

The external financing needs, within the current scenario, are expected to be covered by further inflows of foreign direct investments and by the public borrowing for infrastructure purposes. The current forecast points to a rather stable external debt to GDP ratio. No major pressures are foreseen in the following two years on foreign reserves, and they are to be maintained at the adequate level. Risks surrounding this baseline macroeconomic scenario should not be neglected. For us, as a small an open economy, they mostly come from the external environment and our main trading and financial partners. Although with the latest monetary easing of the ECB the downside risks to the euro zone growth are less pronounced, and in general the global growth risks are more balanced, they are still present and if being materialized, could impact the economy. Additional source of risks are the sharp and sudden swings in the primary commodities prices, which for country like ours, can change the envisaged economic profile to a large extent. A new, additional source of risks is the current domestic political context, which can harm the economy, if not being tackled swiftly. Of course, the risks are challenging and are to be closely monitored. This is even more pronounced, given that the policies’ space at the current juncture is to a great extent exhausted. Hence, the continuation of the structural reforms remains paramount and a challenge, as it can further increase the resilience of the economy, mitigate the risks and reduce the policy burden.