Zeti Akhtar Aziz: Global leadership development Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Official Launch of ICLIF Alumni Association and ICLIF Leadership Competency Model, Kuala Lumpur, 30 November 2004. *  *  *  ICLIF Alumni Members, Distinguished Guests, Ladies and Gentlemen, It is my great pleasure and honour to welcome you to the official launch of the Alumni Association of the International Centre For Leadership In Finance (or ICLIF) and the ICLIF Leadership Competency Model (ILCM). ICLIF Alumni Association It was just over a year ago that we witnessed the Official Launch of ICLIF on 28 October 2003. Within this period, ICLIF has already made considerable progress in meeting its objective to provide a more focused and coordinated approach towards the development of world-class leaders in the financial services sector in Malaysia and in the region. To-date, ICLIF has successfully concluded two sessions of its flagship Global Leadership Development Programme or GLDP, in addition to a Directors’ Forum and a seminar on Scenario Planning. Besides providing participants with an opportunity to learn from the “top thinkers” from worldrenowned institutions and industry practitioners and experts, one of the key strengths of ICLIF’s programmes lies with the unique opportunity for the participants to establish strong social and professional networking and build lasting fraternity bonds. The launch of the ICLIF Alumni Association has been designed to play this role.

A more comprehensive consideration of the gaps in the Fund’s surveillance framework is necessary to strengthen the effectiveness of the Fund’s bilateral and multilateral surveillance. 4. Given its universal membership and deep technical expertise, the Fund is uniquely placed to identify global challenges, facilitate dialogue and propose policy adjustments. To leverage on such unique strengths, the Fund must earn the trust of its entire membership that its policy advice is formulated in an evenhanded manner. In this respect, the forthcoming  BIS central bankers’ speeches  1  spillover reports will be another important test of the Fund’s commitment to this principle. Therefore, we hope that such reports will be written in a balanced manner without concentrating the burden of policy adjustment needs on any particular country or region. Lastly, these expanded exercises should not neglect bilateral surveillance exercises, as they remain the cornerstone of Fund surveillance, offering the safe haven of confidentiality that encourages candid discussions between Fund staff and country authorities. International Monetary System reform 5. The arguments relating to the deficiencies of the IMS are by now well-rehearsed. Yet, a consensus on what the most critical problems – let alone solutions – are, remains elusive. For emerging market countries, resurgent capital inflows have complicated the task of policymakers, especially as policy settings are being normalized to manage inflation risk. While capital inflows are by and large beneficial in promoting growth and investment, large and volatile episodes can pose significant challenges and overwhelm some recipient countries’ ability to respond.