Announcing the development of a national strategy for financial literacy As reflected in the theme of this conference — “Towards an effective financial education strategy in Malaysia”, I would like to share with you that work is currently underway to formulate a 5-year national strategy to elevate financial literacy. The national strategy rests on three main thrusts – the three “Cs” – clarity, collaboration and commitment: Clarity: In terms of having a clear vision to realise financial well-being of Malaysians. Collaboration: Financial literacy is a shared responsibility and, therefore, requires strong collaboration of all stakeholders. Commitment: Is towards having an outcome-oriented approach to implementation. Let me elaborate on each of these thrusts. The first is “clarity”. We have a clear vision — to realise financial well-being of Malaysians by advancing and elevating financial literacy. Our vision aims to shape the society characterised by – responsible financial behaviour; the ability to manage finances well; and to achieve financial security. A population with a high-sense of financial well-being has the financial freedom of choice to enjoy life. Financial well-being is a pre-condition for a more productive, resilient and inclusive economy. Indeed, the journey to attain individual financial well-being is a journey worth taking and it will be a long journey too. Thus, over the longer run, the implementation of the national strategy will be aligned to the longer term Government aspiration under the Finance Cluster initiative of the Transformasi Nasional 2050 — or the TN50.

In most emerging market economies, the mandate of the Central Bank is generally broader beyond monetary and financial stability to include development of the financial system to ensure effective and efficient functioning of the financial system, financial inclusion to maintain balanced growth and more recently preserving the environment to secure sustainability of our progress and development Special role of Central Banks in emerging economies Allow me to focus on the special role of Central Banks in emerging economies. Central Banks in most emerging economies are frequently called upon to have a role in the development of the financial system. A well-developed and robust financial system constitutes an essential foundation for sustainable economic growth as it enhances the efficiency of financial  2  BIS central bankers’ speeches  intermediation, contributing towards lower transaction costs and increased competitiveness. Many Central Banks have drawn up masterplans and blueprints for this purpose. The key building blocks are the strengthening of financial infrastructure, such as the payments and settlement system, the development of money and bond markets and in the implementation of financial reforms involving the deregulation and greater market orientation and liberalisation resulting in greater integration with the global financial system. Central Banks in many emerging economies are also tasked with promoting financial inclusion. Greater financial inclusion is a key component for an economy towards achieving a more balanced growth and thereby increasing the prospect for a more sustainable growth. What are the factors that have allowed Central Banks in the emerging economies to perform these roles?