zeti akhtar aziz : enhancing financial literacy for sustained economic prosperity dinner address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the citigroupinsead financial education summit 2005 : a forum promoting financial education in asia pacific, kuala lumpur, 12 december 2005. * * * it is my great pleasure to be here tonight at this second citigroup - insead financial education summit. malaysia is particularly pleased to host this year's summit here in kuala lumpur given that enhancing the levels of financial literacy is being accorded a high priority on our agenda. effective participation in the economy essentially needs to be an informed participation. this is more so now than ever before. we are now living in an environment of rapid change. the advances in technology, product innovation, the removal of regulatory restrictions, deregulation and greater competition have dramatically transformed the financial system and the economy. the environment is marked by increased access to financial services, broader range of products and services, a far more competitive financial services industry and more complex financial transactions. it is the demands of this new environment that has created a greater need for financial literacy to not only ensure the efficient functioning of the financial system but also enhance the potential for the economy to prosper and thrive. this evening, i would like to focus on financial literacy from the perspective of the central bank, given that the function of the central bank has widespread implications on financial markets, businesses and the public as large. the main responsibilities of the central bank includes the formulation and implementation of monetary policy, ensuring the soundness and stability of the banking system, and finally ensuring the integrity and reliability of the payments systems. in all these areas, the actions of the central bank have direct implications on the business community and the public at large. the ultimate aim of the policies are to make the economy strong, and to ensure the health of the financial system that is vital to supporting the economic growth and development process. knowledge of what the central bank does and the reasons for its actions are essential for the efficient functioning of the financial markets and the effectiveness of the policy initiatives. in all these areas, the behavior of businesses and consumers at large are important in determining the final outcome. having the knowledge and understanding of the issues would better equip consumers to manage their financial matters and to make well informed decisions regarding their own finances. in addition, it would also contribute to the soundness of the banking system and the efficiency of the payments system. in

, a region covering 2, 200 sq. km. located in the state of johor, in the south of peninsular malaysia. up to usd100 billion investments in the region are expected over the next 25 years. as at the end of april 2008, more than usd10. 4 billion of investment have been committed by investors, accounting for about 70 percent of the usd15 billion investment targeted by 2010. the targeted sectors identified for development in the region are financial advisory and consulting services ; creative industries ; logistics ; educational services ; tourism related services ; and healthcare. as an international islamic financial hub in the asian region with a track record of almost three decades in islamic finance, malaysia is well positioned to promote stronger economic linkages between our two regions. malaysia is not only already highly integrated to the asean region and to the greater asia, but also has own initiatives and exciting development projects. on that note, it is our hope that the malaysia country showcase be an engaging event for the business and financial communities from this region and the malaysian delegation. it is hoped that this greater engagement will lead to increased economic and financial ties between our regions. thank you.