zeti akhtar aziz : strengthening malaysia ’ s financial system speech by dr zeti akhtar aziz, governor of the central bank of malaysia, at the launch of the finance accreditation agency, kuala lumpur, 6 september 2013. * * * it is my great pleasure to join you this morning on the occasion of the launch of the finance accreditation agency. the establishment of the finance accreditation agency ( faa ) is part of the efforts to strengthen the financial system as it continues to evolve in a rapidly changing environment. the change in our financial system in this recent decade since the asian financial crisis has been transformational. it has encompassed major structural reforms in the banking sector, the development of a deep and vibrant securities market which has now assumed a key role in financial intermediation, the growth of islamic finance and the modernisation of the insurance sector. the regulatory and supervisory structure and approach has also evolved to become more risk - focused, more aligned with efficient capital and financial markets, and less reliant on prescriptive and direct controls. this has fostered greater innovation and competition in our financial system, while preserving strong incentives for prudent risk - taking. this has been reinforced through the supervisory oversight and increased market transparency. the evolution of business and distribution models has followed, with significant gains achieved in efficiency, greater financial inclusion and a more dynamic and responsive financial industry to better serve the economy. in addition, our financial system has become more global in its orientation, in turn lifting malaysia ’ s economic potential. the strategic importance of human capital has been central to this transformation. the quality of human capital has become a key driver and enabler of the change in this recent decade, with greater emphasis on productivity, and on elevating the skills and competencies of the talent pool in the financial industry. today, the financial sector workforce in malaysia has the highest total - factor productivity growth relative to other sectors of the economy. employment growth in the financial sector has also been in the higher skilled roles. this accounts for the higher level of wages in the financial sector which is more than one and half times the national average. financial services employees are also generally educated to a higher level, with higher expectations for individuals in key and senior - level positions within the industry to hold post - graduate or professional qualifications, in addition to relevant work experience. going forward, the human capital imperative will increase in importance – for the financial industry to sustain and reinforce the strong foundations that have been built, and to take

industry well or competitive. for existing talents, continuous professional and skills enhancement programmes organised by professional bodies like mii, would help the insurance and takaful industry in meeting the industrys ’ needs. conclusion let me conclude my remarks. as we advance forward into the future, the economic and financial landscape would evolve and it would evolve very rapidly. our duty as industry leaders is to build on the existing foundation that got us here. but moving the industry to next level would require strategic change. it would require fundamental rethinking to stay ahead of the curve and to meet the difficult challenges. the highest of priority needs to be given to raising performance standards, improving customer experience and retention, as well as bis central bankers ’ speeches attract new and fresh talent. but all this can only be achieved if we embark on a collective effort. only effective effort would ensure an industry that is vibrant and resilient. thank you, and enjoy the rest of the evening. bis central bankers ’ speeches