candid discussions on policy effectiveness and unintended risks that could arise go a long way in minimising potential policy missteps. while capital flow volatility will remain a key feature of the global financial system, we have to acknowledge that with heightened uncertainties prevailing in the global economy, capital flow volatility would only intensify. for example, in malaysia, two - way capital flows have increased by almost three - fold in the aftermath of the global financial crisis. yes, we have had large swings in capital flows before and we have been able to manage these surges. what worries me, however, is the fact that monetary and financial stability risks posed by large and destabilising capital flows are expanding, evolving and becoming more entangled. we are very familiar with the risks posed by volatile capital flows. at the extreme, capital flows can lead to the build - up of domestic vulnerabilities, such as currency mismatches, external indebtedness and broader financial imbalances. these risks are becoming more entwined and complex than ever before. capital flows undoubtedly complicate efforts to achieve monetary and financial stability. allowing exchange rate adjustment to deal with capital flows may also be too simplistic. 1 / 3 bis central bankers'speeches while capital flow risks have become more complicated, the issue faced by policymakers remains unchanged – that is, how can we better manage these risks and yet maximise the benefits that come with capital flows. the experience of our economies in dealing with capital flow volatility underscores the need to ensure our economic fundamentals are robust. while this is necessary, it is not sufficient. we have seen how external developments that are beyond our control, such as taper tantrum and trade tensions, could trigger periods of sharp capital flow volatility in emerging economies with severe consequences. there are “ innocent bystanders ” who are gravely impacted. it is therefore imperative that collectively, we continue to urge the global community to better manage the risks arising from financial openness. more needs to be done at the international level to have, to quote imf md christine lagarde, “ safer capital flows ". nevertheless, we have to recognise that it is not easy to expect change at the international level. it will definitely take time. while the global community continues to debate and explore possible solutions to manage spillovers and spillbacks of policies in advanced economies, our economies will have to continue to grapple with

customers, then that relationship will sustain the insurance company or takaful operator even during distressing periods. regularly benchmark against the best to measure your performance benchmarking exercises have proven to drive performance improvement by facilitating comparison and performance measurement amongst industry players. it is a yard stick that measures how your company faired in delivering its mandates to its shareholders and customers. the bank has been conducting an industry - wide benchmarking exercise since 2001, in line with recommendations of the financial sector master plan to drive performance improvement. i believe the industry has benefitted from this initiative to improve the standard of services provided to its customers. going forward however, it is timely and economically sensible for the industry to collaborate and assume this role to develop its own range of indicators. if we were to strive for quality, the benchmarking should be against the world ’ s best, and not confined to our domestic market alone. the benchmarking could cover a wider range of indicators including financial and operating statistics, distribution channels as well as customer service indices that will benefit every member company. in many countries, it is the industry associations that undertake this role. in this regard, i call upon the associations present here tonight to give this matter a serious thought. collaborate and cooperate with others as synergy drives efficiency for the ultimate benefit of customers synergy creates new value and has a multiplier effect on outcomes that would not be possible, individually. studies have shown that even the best individual efforts cannot stack bis central bankers ’ speeches up against today ’ s complex and interconnected problems. the challenges of market liberalisation will require players to achieve more despite limitations in individual resources. but having to do more with less, simply means having to do it together. the industry through pooling of capacity, expertise and resources can addressed, perennial issues faced by individual companies, collectively. heightening collaboration is no longer a choice but a necessity to achieve the industry ’ s common goal in a more competitive market environment. one way in which the industry can collaborate, is in the area of digitalization. digitalization is a costly exercise and global survey findings forecasted an average growth in annualized spending on big data analytics of approximately 25 %. therefore, it makes sense for the industry to collaborate and share resources in this endeavour. drawing from the industry ’ s effort to develop the fraud intelligence system is a very good step. i envisage seeing more collaborative digital propositions from the industry in the near future. the industry must be committed