, it is timely for insurers including intermediaries, to assess how best to improve insurance penetration going forward. there are some fundamental questions that need to be asked. would attracting a larger agency force be the most effective solution in this more liberalized environment? or, should the focus perhaps be on expanding the diversity of the intermediaries in general, to ensure consumers have more alternatives to receive high - quality and suitable advice? whatever the response to these questions, what is obvious is that investing in human capital is an important common denominator, not only to enhance the existing level of expertise of intermediaries but also to attract the right people to ensure a continuous supply of talents into the profession. it is from this perspective that an incentive package is being considered by the bank to subsidize the costs related to minimum professional qualifications for fas. we hope that it will entice more agents to consider upgrading themselves to become successful fas. growing demand for independent financial advisory services as our economy continues its track towards high income nation status, and as our society becomes more affluent and discerning, we envisage an increasing demand and preference for high - quality, independent and personalized advisory services among financially - savvy consumers. apart from rising levels of disposable income and financial sophistication, malaysians are expected to live longer now than ever before. it is projected that by 2040, 17 % of the malaysian population will live beyond the age of 60 years old compared to about only 8 % of the total population in 2010. this creates the need for more effective long - term financial planning on the part of consumers to ensure they have sufficient funds to see them through their golden years. in this respect, as part of the government ’ s initiative to encourage savings among malaysians to better prepare for their retirement, the government had announced a tax relief of rm3, 000 for individuals who have bought an annuity plan for the next 10 years commencing in 2012. bis central bankers ’ speeches an increased competition within the financial sector and evolving demographic structures has also led to the introduction of new and more complex financial products offered by financial service providers. while financial consumers now have a greater array of choice, the challenge is in choosing the most appropriate financial product commensurate to their needs. lessons learned from other markets showed that high - profile cases of mis - selling of investment - linked and pension products extols the importance of ensuring consumers are properly advice

- related activities. a more dynamic and intelligent system, based on real - time data analytics supported by artificial intelligence and machine learning would be useful in detecting and halting such transactions. importantly, we need to have the capability to detect the interconnectedness between terrorism financing and other crimes including robbery, fraud, kidnapping and drug trafficking. threats of proliferation financing every jurisdiction has a vital role to play in hindering the proliferation of weapons of mass destruction. we must be attentive to the various methods of circumventing sanctions relating to proliferation financing. our monitoring and detection systems must be dynamic to incorporate changes in our environment. there are many documented cases of sanctions circumventions due to lapses in the system. this includes deficiencies in establishing beneficial owners which allows sanctions to be circumvented through conduits such as real estate firms and shell companies. accounts opened with inadequate customer due diligence or transactions without appropriate screening are loopholes that can be exploited. these serve as important reminders that we must be wary and alert at all times in the daily operations. responsibility collectively, the roles and responsibilities that we have, extend beyond the scope of our individual organisations. prevention of financial crimes and terrorism financing is an important element to fortify the agenda of monetary and financial stability of the country. complying adequately with international standards and best practices is consistent towards instilling confidence among stakeholders on the integrity and credibility of our financial system. more importantly, keeping financial crime and terrorism financing in check helps contribute towards the country ’ s security and stability, which is an important catalyst to a balanced economic growth and development. allow me to share some of the ideas and expectations with regard to the responsibilities of compliance officers. as we are all aware, the requirements imposed are now moving towards principle - based rather than that of prescriptive or rule - based. this provides institutions with the authority or freedom to develop their own internal policy that commensurates with their risk and profile while upholding the policy intent. thus, it is up to compliance officers to support the institutions to develop such comprehensive policies and to ensure they are properly implemented within the institution and by all relevant staff. the compliance office should also be proactive in providing accurate and proper information for their clients, especially the general public, on the intent and requirement of their policies to avoid misrepresentations of regulatory requirements and the institutions ’ own business decisions. compliance officers should be proactive in recommending efforts and initiatives within