part of a broader set of bsp reforms on liquidity standards. this initiative was preceded by the issuance of the liquidity coverage ratio ( or “ lcr ” ) framework in march 2016. it will be followed by issuances on the implementation of the net stable funding ratio ( or “ nsfr ” ), which is part of the basel iii liquidity standards ; and intraday liquidity reporting requirements. vigilance as we build the economic landscape looks good, with conditions ripe for building. however, as we build, we must be mindful and vigilant of challenges. for example, there could be some transitory upside risks to inflation owing to the possible impact of the proposed tax reform program along with pending petitions to raise power rates. this notwithstanding, inflation expectations continue to be within target over the policy horizon. the bsp also continues to watch against financial market volatility emanating from uncertainty in the pace of normalization of u. s. monetary policy as well as geopolitical issues that may have impact on the stability of financial markets, on movement of capital flows, and on continued economic activity. infra supports the superstructure at the bsp, our mandate is to provide policy direction in the areas of money, banking and credit. we do not ourselves build the finfrastructure. rather, our task is to promote an environment for those that do ( this includes many in this prominent audience ).... we do this through implementation of rules and regulations, through the launching of initiatives, and through sound, prudent and progressive banking reforms. as i say this, the fact that what we do in the bsp is slightly invisible becomes apparent. but insight is that the very word itself, “ infrastructure ” is preceded by the latin prefix, infra... which means “ below ”... which while underneath and invisible, provides support to the superstructure flourishing above it. in this sense, i am heartened. what an honor for the bsp to serve in this way! 2 / 5 bis central bankers'speeches the finfrastructure agenda at the bsp, our agenda on finfrastructure focuses on financial sector and market infrastructure reforms that aim to enhance access to credit and other financial services, deepen local currency debt and foreign exchange markets, and digitalize our financial system. these are strategic and complementary reforms that reinforce sustainable economic growth and push further our financial inclusion agenda. over the years,

##ing in the advanced economies, more moderate growth in china and continued volatility in the global financial markets. for the last two decades, malaysia has been becoming more integrated with the regional and global economy. the recent conclusion of the asean banking integration framework and trans - pacific partnership agreement, if properly sequence and implemented, provide further opportunities for malaysian companies to expand abroad. but expansion beyond our shores poses new challenges as financial institutions will navigate unfamiliar territory. the operational environment will be different. the business model will require remodelling. board members are therefore expected to familiarise themselves with the economic, financial and social environment of foreign markets if they are to be effective and successful. bis central bankers ’ speeches along with higher expectations, there has also been a noticeable increase in the absolute demand for financial institution directors in malaysia. since a decade ago, the number of directors in the malaysian financial sector has increased significantly. this can be attributed to several factors. one reason is the increase in the number of financial institutions arising from the establishment of new islamic banking and takaful entities within existing banking and insurance groups. besides that, financial institutions have also progressively strengthened the composition of their boards. this was largely driven by the need to bring more diverse perspectives and skills to the board to meet the growing demands placed on it, and to better prepare for board succession. in the process, we also saw independent directors forming a majority on boards of more financial institutions, including some of the largest domestic financial institutions in the country. it is important to emphasise that this growing demand has not been just about numbers ; it is more importantly about the quality of talent that boards must have to perform their role effectively. fide forum and icilf – working together to increase their impact and influence it is against this backdrop of growing demand that fide forum has stepped in to offer financial institutions a platform to connect with potential directors from both within and outside malaysia. the directors register achieves this in two ways. firstly, by identifying board - ready individuals who already have the necessary skills, knowledge and experience. and secondly, by initiating into the talent pool individuals who have the calibre to serve on financial institution boards, but require development in certain areas, such as those specific to the banking or insurance industry. by significantly widening the supply sources, this initiative is in many ways a game - changing initiative to strengthen the talent pipeline for financial institution boards. the directors register complements the education programmes that have already been introduced for financial institution directors under ic