zeti akhtar aziz : the changing face of talent speech by dr zeti akhtar aziz, governor of the central bank of malaysia, at the aif ( asian institute of finance ) international symposium 2013 “ changing face of talent ”, kuala lumpur, 28 august 2013. * * * it is with great pleasure that i welcome you to the aif international symposium on the changing face of talent. in preparing for the future, a future that is going to be fundamentally different from the current environment, talent development and its management will need to be accorded with an even greater priority than previously. this is on account of two significant shifts in the landscape that we are operating in that will fundamentally affect the human capital that we need. the first is the rapid and significant transformation of the economic, financial and business landscape which will continue to have far reaching changes on the talent requirements. the second is the changes in the character and nature of the talent that is now coming on stream. these emerging changes have warranted new approaches to human capital development and management. to not recognise these changes and their implications will not only affect business performance but also the overall economic progress of a country. my address this morning will briefly discuss the fundamental changes that are affecting the financial and economic landscape and its implications for talent requirements. my remarks will then proceed with some reflections on the changing nature and character of the talent that is coming on stream. i will then conclude with some thoughts on the implications these developments on talent development and management, in particular, for the financial sector. the challenge for recruiting and retaining the right talent has also become increasingly more acute, particularly for the financial sector. therein lies the urgency for the greater focus of attention on these issues and the need to accord greater priority for this important agenda. the transformation of the economic and financial landscape the economic, financial and business landscape is rapidly being transformed and is continuously evolving. globalisation and internationalisation, accelerated by liberalisation and the rapid advancement in technology are increasing connectivity between economies and between financial markets across borders. this is resulting in greater international economic and financial integration and interdependence. regional integration in asia has for example created immense opportunities for economies of scale while paving the way for new and larger markets. a significant global shift in this environment is also the growing importance of emerging economies. as a result, many of these economies are becoming huge consumer markets. in asia, this is resulting in greater regional trade and cross border investment activity. a further fundamental

only in germany. we will keep explaining to our critics in germany – and also to german savers – that their country is one of the main beneficiaries of the euro. a stronger euro area, with inflation of below but close to 2 %, would be good for germany. as for the debate we may have from time to time with some academics in germany, i would say there is a certain irony in them taking us to task because we are focusing on our inflation target, since it is at germany ’ s insistence that the ecb was given that mandate – and that mandate only – in the euro ’ s founding treaties, and in my view rightly so. bis central bankers ’ speeches did the euro ’ s jump after your announcement on march 10 disappoint you? it doesn ’ t help your return - to - inflation goal … the ecb, as you know, doesn ’ t have a foreign exchange target. what i saw is that financial markets in general understood what we did, which is more important than the instant reaction of forex operators. the dollar / euro exchange rate is mostly driven by different monetary policies in the united states and europe. what would be more worrisome for us would be a further decline of emerging countries ’ currencies, and increased volatility of the pound sterling due to the eu referendum debate in the united kingdom. does the ecb have a plan for a possible “ brexit ”? i don ’ t want to meddle in a decision that is for the british people to make. however, as a citizen and a european, of course i want the united kingdom to remain in the european union, to which it brings so much. that said, it is normal for us to prepare for any possible scenario, and its impact on euro area banks. if the other scenario prevails and the united kingdom remains in europe, were you reassured by the results of the brexit negotiations between london and its partners? we had two main concerns. one was to make sure that the discussion would not make further euro area integration more difficult. the second was that it wouldn ’ t fragment the single market for financial services and strip the capital markets union project of its substance, notably the single rulebook for financial regulation. the final agreement is a balanced one and we have been reassured, even though ambiguities remain, of course. bis central bankers ’ speeches