achieving greater economic efficiency through electronic payments ; ( viii ) empowered consumers ; and ( ix ) talent development for the financial sector. a strong focus in the blueprint is on developing the financial ecosystem to enhance funding for innovation which represents a key transformative agenda in our new economic model. ten initiatives in the blueprint are devoted directly to nurturing sources of financing for innovative enterprises in all sectors and at various stages of development. over the next ten years, steps will be taken to achieve a wider range of funding sources for new ideas, including new conduits for financing and investments in innovative industries. with the foundations now in place for greater liberalisation, the blueprint extends this path by assuming a more regional and international complexion. this will entail positioning our financial sector to participate more effectively in the mobilisation of regional surplus funds to productive investments in the region. the financial sector will also advance the country ’ s external orientation by serving malaysian corporations in their regional and international operations, as well as facilitating greater participation of international and regional corporations in our economy. malaysia will also continue to spearhead the internationalisation of islamic finance to facilitate greater cross - border islamic financial activities. the blueprint will also pave the way for the integration of the existing national - level shariah councils into a single apex authority on shariah matters to be established for all institutions offering islamic financial services in malaysia. in the blueprint, financial liberalisation will be pursued in the best interests of malaysia. the goals for financial liberalisation are twofold. firstly, to improve allocative efficiency to productive economic activities, to increase the operational efficiency and lower further the intermediation costs, and to encourage greater financial innovation. secondly, to strengthen further malaysia ’ s economic and financial linkages with the region and other parts of the emerging world. key recommendations in the blueprint include more flexible limits on foreign participation in financial institutions, the issuance of new licenses to financial institutions with specialised expertise that are able to contribute to malaysia ’ s economic aspirations and financial sector development. in implementing these strategies an assessment will be made on the factors contributing to the best interests of malaysia. in addition to the prudential criteria that must be met, the presence of strong and well - managed domestic banking groups that will account for a significant share of resident deposits will remain important for the orderly growth and development of the financial sector and of the malaysian economy. as our financial sector continues to advance over the next decade, priority will continue to be

zeti akhtar aziz : enhancing financial literacy for sustained economic prosperity dinner address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the citigroupinsead financial education summit 2005 : a forum promoting financial education in asia pacific, kuala lumpur, 12 december 2005. * * * it is my great pleasure to be here tonight at this second citigroup - insead financial education summit. malaysia is particularly pleased to host this year's summit here in kuala lumpur given that enhancing the levels of financial literacy is being accorded a high priority on our agenda. effective participation in the economy essentially needs to be an informed participation. this is more so now than ever before. we are now living in an environment of rapid change. the advances in technology, product innovation, the removal of regulatory restrictions, deregulation and greater competition have dramatically transformed the financial system and the economy. the environment is marked by increased access to financial services, broader range of products and services, a far more competitive financial services industry and more complex financial transactions. it is the demands of this new environment that has created a greater need for financial literacy to not only ensure the efficient functioning of the financial system but also enhance the potential for the economy to prosper and thrive. this evening, i would like to focus on financial literacy from the perspective of the central bank, given that the function of the central bank has widespread implications on financial markets, businesses and the public as large. the main responsibilities of the central bank includes the formulation and implementation of monetary policy, ensuring the soundness and stability of the banking system, and finally ensuring the integrity and reliability of the payments systems. in all these areas, the actions of the central bank have direct implications on the business community and the public at large. the ultimate aim of the policies are to make the economy strong, and to ensure the health of the financial system that is vital to supporting the economic growth and development process. knowledge of what the central bank does and the reasons for its actions are essential for the efficient functioning of the financial markets and the effectiveness of the policy initiatives. in all these areas, the behavior of businesses and consumers at large are important in determining the final outcome. having the knowledge and understanding of the issues would better equip consumers to manage their financial matters and to make well informed decisions regarding their own finances. in addition, it would also contribute to the soundness of the banking system and the efficiency of the payments system. in