Over the last two years, we have taken important steps forward within the financial sector in Malaysia. The establishment of the JC3 in 2019 by Bank Negara and the Securities Commission in partnership with the industry, has served as a key focal point for collective climate actions in the financial sector and across multiple stakeholders. The JC3 continues to coordinate and lead efforts in five priority areas. First, we are introducing frameworks for the identification and classification of economic activities that meet climate objectives and are environmentally sustainable. A principles-based taxonomy has been issued to encourage financial flows to activities that support the transition to a lowcarbon and climate resilient economy. With the taxonomy in place, our focus will be to support its consistent and credible implementation within the financial sector. These efforts are being complemented by the issuance of sectoral guides under the Value-based Intermediation Assessment Framework (VBIAF) to help financial institutions conduct ESG risk assessments at a more granular level. Such guides have been issued for three economic subsectors, with three more to be published for consultation by the end of this year. And today, we will be launching the VBI Takaful Framework (VBITF) which outlines the implementation approach for activities in the takaful industry that is aligned with sustainability considerations. Second, we are strengthening practices in the treatment and disclosures of climate risks by financial intermediaries. As part of our supervisory approach, Bank Negara expects financial institutions to consider and integrate climate risks in their business strategies, risk management framework and practices.

Dear ladies and gentlemen, The new agreement, similarly to the previous one, enables the Bank of Albania to be part of a rich, deep and diverse programme of bilateral assistance and capacity building for central banks. Through qualifications and capacity building, the goal of the cooperation agreement is to perfect the analysis, the decision-making and, consequently, the policy-making processes at the Bank of Albania. I think that we have already established firm foundations that guarantee an even stronger partnership for the second phase. Expected outcomes from the implementation of the second phase include: monetary policy decision making sustained by improved forecasting capacities, macro-prudential policy formulated based on a larger body of knowledge about various risks; and research further enriched with the best research methodologies and practices. These goals form the core of our medium-term strategy. The Bank of Albania aims to increase the impact of research results on decision-making, extend research to other departments, and adopt highest standards on ethics and rigorous research, which renders it one of the priorities of the cooperation. Many of the current developments and challenges in certain countries or regions may appear as distant and alien to us, but globalisation and economic integration disregards borders and their effect and impact may spill over into our economy. The problems that persist from the financial crisis, the continuation of quantitative easing programmes and the new normal for the monetary policy affect the functioning of the central bank.