While we were once an export-driven economy, our resilient domestic demand has served as a strong anchor of growth when external demand became challenging in the aftermath of the Trans-Atlantic Financial Crisis. We have a long track record of sound macroeconomic planning and management. Today, let me focus on international reserves. Malaysia’s management of its international reserves has always been undertaken with integrity and prudence. Under meticulous management, the size of our foreign exchange reserves has grown substantially in the last two decades. The development of Malaysia’s international reserves has been under the media spotlight lately. It is important to note that speculation on the country’s international reserves, if not managed properly, can affect trust and confidence in the economy, financial system as well as its currency. The main purpose of international reserves is to serve as a buffer against external shocks. This reduces the likelihood of a balance of payments crisis, thereby preserving monetary and financial stability and orderly market conditions. The sheer magnitude of funds flowing between financial markets is now staggering. This is further complicated by the rapid pace at which these transactions may occur because of technological advancements. In such periods, changes in international reserves should respond accordingly. 2/6  BIS central bankers' speeches  But one area we should be mindful of is that reserves should increase and fall in an open financial market, serving as a buffer against potentially disruptive volatile financial flows. A decline in reserves during periods of capital reversal is not a new phenomenon.

Google has established its Center of Excellence in Cyberjaya. This centre would showcase a range of Google for Work products such as Google Apps for Work and Google Cloud Platform. Malaysia always subscribes to global best practice and standards. From national statistics to macroeconomic management, international organisations like the IMF and World Bank have long acknowledged Malaysia’s adherence to international best standards. A quick word on the impact of global standards on the real economy. Our adherence to international standards has extended to the quality of our products. From precision semiconductors to commodities, a wide array of Malaysia’s exports have gained international 4/6  BIS central bankers' speeches  recognition. A recent case in point is the palm oil industry, which also marks its 100th year of industrialisation this year. Since the introduction of the Roundtable Sustainable Palm Oil (RSPO) standards, our major palm oil players have redesigned their plantation strategies to comply with the strict RSPO standards. We have also gone a step further by introducing the Malaysian Sustainable Palm Oil (MSPO) certification to elevate the standards of smallholders. Malaysia’s economic and business policies are agile and pragmatic. Our world is increasingly fast-paced, with ever changing challenges. To remain competitive and relevant, policies must be agile and efficient. Malaysia’s policies have been flexible and pragmatic. Time and again, we have demonstrated the courage to take bold and unconventional measures to protect the economy and the interests of genuine investors.