Zeti Akhtar Aziz: Consumer protection and financial education Welcoming address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Financial Inclusion Policymakers Forum on “Consumer Protection and Financial Education”, Kuala Lumpur, 5 April 2011. *  *  *  It is my great pleasure to welcome you to this Financial Inclusion Policymakers Forum on “Consumer Protection and Financial Education”. Bank Negara Malaysia is most honoured to host this event that brings together senior officials from the regulatory community from this region and participants from agencies with an interest in developing more inclusive financial systems. Financial inclusion has now emerged as an important global agenda in ensuring sustainable long-term economic growth. The G20 summit in 2010 recognised financial inclusion as one of the main pillars of the global development agenda. This is a significant development as it reflects the global recognition and importance being given to social and economic development and for such growth to be inclusive in its outreach. Financial inclusion is an integral part of such an inclusive growth process. A high degree of financial inclusion will allow for the various segments of the economy, regardless of income levels, economic activity and regions to have access to financial services. At its most basic level, financial inclusion provides the means and opportunity for undertaking essential financial transactions for savings and the accumulations of financial buffers and having access to financing. Promoting financial inclusion, however, remains a significant challenge.

In Malaysia, the commitment to the financial inclusion agenda is legislated under the new Central Bank of Malaysia Act 2009 which provides as one of our primary functions – to promote the development of a sound, progressive and inclusive financial system. Malaysia’s financial inclusion agenda has been developed in concert with the development of the overall financial sector and encompasses the five broad strategies. Our blueprint for the development of the financial sector for the next decade will give special focus on financial inclusion and consumer protection. In the previous decade, the focus was  2  BIS central bankers’ speeches  to enhance the access to financing, financial education and putting in place the supporting institutional arrangements to enhance financial inclusion. While these efforts will be intensified further in this next decade, greater leverage will be made on technology and on new institutional arrangements to extend the outreach to the range of users from households to micro enterprises and small and medium scale enterprises. Also important is the development of the enabling environment conducive for innovation of the range of financial products and services needed for the spectrum of society and businesses and for cost effective pricing to take place. This will be reinforce by the supporting infrastructure for the effective management of risks by financial institutions; strengthening of the development financial institutions; and putting in place a comprehensive consumer protection, redress and education framework. These strategies are pursued under a collaborative approach that effectively combines with the efforts by the private sector.