of capital over the medium - term. malaysia has since progressively further liberalised its rules for foreign exchange transactions culminating in the removal of most of the rules in april 2005. strengthened regional financial cooperation during the 1997 / 1998 crisis, asia did not come together to collaboratively and cumulatively act to contain the crisis and subsequently to facilitate its resolution. perhaps, it was due to the nature of the crisis, its severity on the financial markets and the economies. domestic stability had to be first restored before time could be taken to formulate a holistic crisis management solution. the instability in the currency markets lasted for about one and a half years. there was also no entity in the region during that period that provided any authoritative assessment on whether the programmes that were subsequently being implemented would in fact produce the desired outcomes. while efforts to strengthen the domestic economies and the financial systems will continue, this has now being reinforced by the improved regional surveillance including on cross border financial flows, and by institutional arrangements that would contribute towards crisis containment and management. the regional cooperative efforts going forward will continue to gain momentum. these efforts should not be seen as attempting to substitute but rather as efforts to complement the existing international arrangements. the objective to be achieved is the same, that is, to build the regional capacity to be better positioned to prevent, contain and resolve any potential crisis at minimum costs to our financial systems and to our economies. in conclusion, the cumulative effect of the changes since the asian crisis has transformed asean – opening up new opportunities and making the region resilient and a dynamic centre of growth. the asean “ tigers ” are back, and poised to leap on to the next wave of economic advancement and prosperity.

norhana endut : navigating climate risk stress testing in malaysia catalysing dialogue and charting the course opening remarks by ms norhana endut, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the workshop " navigating climate risk stress testing in malaysia : catalysing dialogue and charting the course ", jointly organised by bank negara malaysia ( bnm ) and the joint committee on climate change ( jc3 ) subcommittee 1 transition and physical risk working groups, kuala lumpur, 23 september 2024. * * * a very good morning to everyone. it is my great honour to welcome you to this workshop on " navigating climate risk stress testing in malaysia : catalysing dialogue and charting the course ", jointly organised by bank negara malaysia ( bnm ) and the joint committee on climate change ( jc3 ) sub - committee 1 transition and physical risk working groups. this capacity building workshop brings together financial industry players and experts in related fields to share experiences, learn best practices and exchange ideas as we collectively prepare to conduct our first industry - wide climate risk stress test. we firmly believe that climate change is an immediate challenge that poses risks to our financial system. to this end, allow me to describe how the central bank is approaching financial regulation in this space. in malaysia, we have taken steps to put in place the foundational components to improve the ability of financial institutions to identify, measure and manage climate - related financial risks. there are five key pieces to these foundational components. firstly, a climate taxonomy establishes a consistent and common classification system for the identification of climate - related exposures. second, mandatory climate disclosures by financial institutions will create an impetus for financial institutions to obtain information on their borrowers and investee firms. this, in turn, creates a virtuous cycle of informational flow. third, regulatory standards on the management of climate - related risks set expectations for financial institutions to reflect these risks in their governance, strategy and risk practices. fourth is a focus on transition planning. this is to ensure financial institutions set clear climate goals and concrete transition plans. with these building blocks in place, we are now in a good position for the fifth component, which is to accelerate industry capabilities via the conduct of the industrywide climate risk stress test. ladies and gentlemen, allow me to shed more light on the motivation behind the implementation of the climate risk stress test. the exercise is primarily intended to enhance capacity building among financial institutions in