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Strategic alliances with third parties, including those within and outside Malaysia, provides efficient opportunities to capitalize on the strengths of each partner and in the process promote development, the transfer of skills and improvement of best practices and pave the way for successful cross-border ventures. The second relates to the area of international standard setting. With the gaining momentum of international standards in such important and pervasive areas such as capital adequacy standards, financial reporting and cross-border activities, it is important for financial institutions to participate more constructively in the standard setting process together with the regulatory community in order for such developments to take into account domestic circumstances and risks. The third is in the area of ongoing negotiations on trade agreements. Banking institutions need to follow these developments and negotiations closely to consider implications it would have to their organisations and future business strategies. The last area of influence relates to communication strategies. With increasing market discipline, effective communications has become more critical. Institutions will need to be more active in responding to consumer and business expectations and the building of long term customer relationships in order to be able to implement longer term business strategies. This is a significant challenge which demands deliberate, planned and well-designed communication strategies and resources dedicated for this effort. Conclusion Ladies and gentlemen,  BIS Review 83/2007  5  This decade has demonstrated the capacity of the banking sector to reinvent and transform.