For publicly listed companies, there is the market discipline of the share price taking a beating for any perceived shortfalls in financial governance. Unfortunately, history is replete with incidences of the failure of such checks and balances, including the repeated failure of markets to impose financial discipline on corporations. Notable examples of the failure of corporate financial governance include the Carrian Group in 1983, Enron in 2001, Worldcom in 2002, and the numerous examples from the recent financial crisis. The narrow fixation on profit maximisation has, in many cases, led to the  4  Source: https://www.regjeringen.no/en/topics/the-economy/the-government-pension-fund/market-value-of-thegovernment-pension-f/id699635/. 5  Source: https://www.mti.gov.sg/AboutMTI/Documents/app.mti.gov.sg/data/pages/507/doc/ERC_Comm_MainReport_Part2_v2.pdf, page 77. BIS central bankers’ speeches  5  misallocation of resources, including the channelling of funds towards unproductive activities for purposes of rent extraction and speculation. This harms economic growth as productive segments are under-invested in. The functioning of markets also needs to be improved. Given the widespread abuse and attempts at manipulation, I believe that appropriate regulations, and their enforcement, can help to ensure that markets function as intended, and support the greater good of society, rather than just the greed and self-interest of the market participants. There is one final aspect of corporate financial governance I would like to mention, and this has to do with what I consider to be one of the biggest threats to future economic growth – environmental sustainability.

Through their sensitivity and expression, we are reminded of the things that we often take for granted, and sometimes highlighting how we fall short from attaining our fullest potential as a nation. Datuk Lat is one of such artists. A number of Datuk Lat’s artworks adorn Bank Negara Malaysia’s premises since the 1980s, reflecting the challenges we face as a central bank in ensuring a sound and robust financial system, in a light-hearted manner. This publication of the Financial LATeracybook aims to preserve these works for the benefit of our future generation. Financial LATeracy is also a way for the Bank to express its heartfelt gratitude and appreciation to Datuk Lat for his continuing support of our financial education initiatives. Today, Financial LATeracy pays a tribute to Datuk Lat’s enduring legacy in this important endeavour. Ladies and gentlemen The Financial LATeracy exhibition is taking place during a time when more than 200 global policy makers and practitioners in the area of financial education from all parts of the world are gathering here in Sasana Kijang to participate in the meetings of the International Network on Financial Education and in the High Level Global Symposium, a network under the OECD, to explore new paths and ideas in advancing financial literacy. I am certain that the works of Datuk Lat will continue to inspire not only Malaysians but many others from foreign shores in this important cause through his unique brand of humour and poignant reflections of our society. 2  BIS central bankers’ speeches