A number of initiatives have already started, such as the current negotiations over an ASEAN-India Free Trade Agreement, which will further help to cement this relationship. The private and public sectors of both sub-regions could benefit from this synergy and ride on the momentum of growth towards what many have termed “the Asian Century”. There is an immense potential to realize from the individual comparative advantages of all the countries in South and East Asia. While China’s trade share with India as a fraction of India’s total trade stands at 7.7%, another 15.6% of India’s trade is with the other 8 Asian economies. India has the potential to lead trade and economic growth and specialization in the South Asian region. I note with great interest the developments under the landmark agreement to create a South Asian Free Trade Area (or SAFTA), which includes Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. As I understand it, the SAFTA, scheduled to come into effect on 1 January 2006, will more than double the size of the market in the region. Implementation of the SAFTA along with the needed reforms to facilitate intra regional trade could spearhead growth and investments within the region. These in turn could raise the profile of the South Asian region as another pillar of growth of the global economy. We recognize all too well that the process of reform, deregulation, and trade liberalization takes time and a strong political will, as well as business sector understanding and acceptance of change.

Zeti Akhtar Aziz: Financial inclusion in Malaysia Welcoming remarks by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Financial Inclusion Advisers Programme, Kuala Lumpur, 18 January 2010. *  *  *  Introduction It is my pleasure to welcome you to the Financial Inclusion Advisers (FIA) Programme. While the global financial landscape is experiencing fundamental changes and as the discussions for financial reforms are being deliberated, of equal importance is the due attention to the financial inclusion agenda. This is vital to achieve balanced sustainable economic growth and broad based job creation. Bank Negara Malaysia is most honoured to host and to jointly organise this Financial Inclusion Advisers Programme with the Japan International Cooperation Agency (JICA). This programme aims to provide practitioners from the financial services industry with a platform to share experiences in the development of successful business models for financial inclusion. It is also an opportunity for regulators to share knowledge and the experience on how to improve the enabling environment for financial inclusion including the institutional arrangements and ensuring its soundness and stability, thereby ensuring its sustainability. Challenges in achieving financial inclusion The global financial crisis and the consequent global economic slowdown in 2009 had implications on the financial inclusion agenda. Disruptions in the functioning of financial markets has brought the focus of attention on financial stability issues. In addition, the collapse in demand following the financial crisis in the major economies resulted in a contraction in world trade.