of principles - based regulations and an increased focus on harnessing market forces and discipline, as well as internal oversight functions, to reinforce prudential regulation and supervision. the aim is to promote a more efficient and responsive financial system. in this connection, bank negara will soon introduce a more facilitative process for product innovations with revisions to the new product approval framework. the changes are aimed at improving time to market for the introduction of new products by financial institutions, while ensuring that institutions put in place a sound product management programme within their respective institutions. the new framework will provide for more simplified regulatory processes and allow greater flexibility for well - managed banks and insurers to introduce new products more quickly in the market. qualifying banks and insurers are expected to exercise this flexibility responsibly and in particular, with due regard to the interests of consumers. the realignment of the regulatory and supervisory structures within the central bank in november 2006 has marked a significant turning point in consolidating these regulatory changes. as a result of the realignment, the bank is better positioned to conduct effective surveillance of the financial system ; to address regulatory overlaps and duplication within the system ; to deal more strategically with the weight of multiple objectives and range of issues confronting the financial system, and more importantly, to preserve regulatory neutrality in the management of similar risks between different financial service providers. ladies and gentlemen, these emerging trends in the international and regional environment will have an important bearing on the changing climate shaping the banking sector. while it brings new opportunities, it will also bring challenges. let me return to the theme of this summit – the continued reinvention and transformation that needs to be considered for the industry going forward. i would like to focus on three main areas. the first concerns human capital development. this is vitally important for the future development and growth of the financial sector. going forward into the future this will become the pivotal factor determining the capacity to reinvent and transform. financial institutions have two broad options. one would be to “ buy talent ”. this remains a viable option as long as productivity growth remains aligned with wage increases. banks, however, need to be wary of bidding up wages without commensurate efficiency improvements or increases in value - add. this would not be sustainable and given the prevailing competitive market conditions, such a strategy will eventually erode the banks'competitiveness resulting from the additional costs. the other option is to “ build talent ”. this can be achieved

##s to plan ahead to secure a sustainable future. looking ahead into the future, it is important for us to be agile and to continuously innovate in facing emerging challenges and the fast changing environment. while the pandemic taught us the importance of economic and financial resilience, it also paved the way for a rapid adoption of digital financial services. this is evidenced by the world bank's finding in their global findex 2021 report which revealed that 79 % of malaysian adults use digital payments, of which 42 % did so for the first time after the pandemic. 2 / 4 bis - central bankers'speeches while the rising importance of digital financial services is welcomed, the adoption of such services without sufficient understanding and knowledge could pose risks to consumers. malaysian consumers are vulnerable to the manipulation of online frauds due to low level of digital financial literacy. common mistakes that led to consumers being scammed include sharing bank account passwords or pin numbers, not paying attention to the legitimacy of a website before making transactions and also clicking on suspicious links a€ “ all of these enable scammers to commit fraud more easily. in our recent publication of the financial stability report, we shared some of the findings of the financial capability and demand survey which bank negara conducted recently. among other findings from the survey, a troubling finding is that, more than a third or 37 % of respondents stated that they have no issue or are willing to share their bank accounts passwords or pin numbers with their close friends. this reflects the lack of understanding on the importance of being vigilance and safeguarding our banking information. as financial transactions and services become increasingly digitalised, malaysians must learn to be more responsible in managing their financial information, well - informed and sensible in assessing investment opportunities, while at the same time increase their vigilance against scams. this is where you, as practitioners, could enhance your role as consumers advocates. it is important for financial planners to continuously provide awareness and alert clients against the latest frauds and scams. public awareness, alongside preventive measures and coordinated enforcement actions, must be elevated to combat this crime and safeguard the hard - earned finances of malaysians. once consumers are sufficiently equipped with the knowledge on using digital financial services responsibly and have a high level of trust in the reliability and security of online services, only then can we reap the full benefits of digitalisation. this ties in with one of bank negara malaysia's aspirations in