all. financial literacy becomes even more important for those who are financially less privileged. for households with limited resources, it becomes vital for them to manage the finances even more effectively to attain financial security and improve economic well - being. improving access to finance and responsible lending by the financial institutions coupled with sensible and prudent use of credit by the borrowers are an imperative for the consumers and for the wider economy. being financially competent can also act as the first line of defence against falling prey to financial scams or frauds and abusive selling practices. indeed, financial education initiatives complemented by fair and responsible business conduct are not only essential complements to financial inclusion, they contribute to broader financial stability and consequently improving the lives of members of society. for financial educators and policymakers, the challenge ahead is a daunting one, given the scope of the task and the rapidly changing environment. there has been no time like the bis central bankers ’ speeches present, where the financial education and financial inclusion agenda has risen to such prominence at the global, regional and national levels. we should seize this opportunity. the increased visibility of financial education and financial inclusion should at least make our work a little bit easier especially in securing top level commitment to advance this agenda and ensure better alignment among various stakeholders. it is in this context that the global leadership of institutions like the oecd, the alliance for financial inclusion ( afi ) and the world bank is important to sustain the momentum for greater progress and champion the financial education and financial inclusion agenda. more can be done collaboratively with national agencies to propagate successful financial education strategies ; to promote more effective coordination with financial inclusion and financial stability mandates ; and to develop frameworks, tools and guidance that can be adapted to local conditions. frameworks for evaluating the effectiveness and measurement of financial education initiatives should be developed to avoid pitfalls that can lead to poor outcomes despite significant time and resources invested in many activities. at the regional level, consumer protection measures are being developed in tandem with the proposed economic measures to achieve greater economic integration under the asean free trade area. for the region, enhancing financial literacy of consumers will be an important consideration in raising the standards for consumer protection frameworks and in promoting financial inclusion. i expect that this will be discussed at the asean roundtable which will take place tomorrow and i encourage your active contribution to this important dialogue. the roundtable discussion will provide opportunities for asean policymakers to share countries ’ experiences, exchange key insights on promising approaches and to explore

muhammad bin ibrahim : creating an inclusive, sustainable and prosperous labuan speech by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the labuan industry annual dinner 2017, labuan, 27 october 2017. * * * it is a pleasure to speak at this dinner. last year i spoke on the urgent need for labuan international business and financial centre ( ibfc ) to reinvent itself to stay relevant – in other words, for us to reinvent ourselves in order to survive in a new world reality. in my remarks tonight, i will build on last year ’ s theme and touch on three imperatives for change in labuan, namely : 1. first, to ensure the local community benefits from economic activity ; 2. second, to transform the economic structure to become one that is more diversified, resilient and sustainable ; and 3. third, to rationalise and enhance tax incentives consistent with international best practices. ensuring the local community reaps the benefits of economic activity labuan has come a long way. after two and a half decades, it is now home to close to 14, 000 companies, 54 banks, more than 200 insurance related entities, foundations and leasing companies, respectively. nonetheless, the growth of the financial sector should have more spillover benefits to the local community. two facts illustrate this : 1. first, gains in income must be more evenly distributed across the local population. the top 20 % earns more than 5 times the income of the bottom 40 % household group1. in addition, we must improve the inequality in labuan as measured by the gini index. it has to improve to at least the national level. high inequality in income affects growth, productivity and opportunities for social mobility ; and 2. second, the average unemployment rate at 5. 1 % in the recent years continues to be above national average in malaysia. while this might be cyclical because of the downturn in the global oil and gas industry, we need a diversification strategy so that over reliance over certain sectors is avoided. further, the workforce participation rate, especially among women, is markedly lower than the national averag2. both reflect a worrying trend where the labour market is not tailored to meet the needs of the local community. this state of affairs is disappointing and cannot persist. it reveals that an improvement in the current economic operating model is warranted. a new model must be designed that can benefit the local community in a more