specifically in the ringgit non - deliverable forward ( ndf ) market. measures taken by the bank in december last year were aimed at further developing the onshore financial markets and limiting the influence of speculative pricing of the ringgit in the offshore market which had undermined the stability of the domestic foreign exchange market. since the implementation of these measures, the exchange rate stabilised, with the 1 - month implied volatility recording a lower average of 4. 5 %, against 9. 9 % before the measures were put in place. the average intraday movement recorded a daily average of 76 points while the bid - ask spread recorded an average of 25. 0 basis points since end - february 2017. of importance, the onshore foreign exchange market continues to record a healthy daily average volume of usd10 billion. prior to the measures, the daily volume was around usd8 billion. the malaysian bond market remains resilient. the last two primary auctions of government bonds recorded a healthy bid - to - cover ratio of more than two times. following higher market demand, mgs benchmark yields have eased lower between 8 – 32 bps across the yield curve. non - resident holdings of government papers have also been pared down from a peak of 34. 7 % to 25. 3 % as at end april 2017. more importantly, our surveillance indicates that the composition of stable and long - term investors is now much higher, with previous outflows mainly due to short - term speculative positions exiting the market. this is definitely a positive development. malaysia remains a highly open economy and will continue to welcome the participation of longterm investors. indeed, we remain a highly attractive destination for foreign direct investment. returns on malaysia ’ s fdi assets have averaged 12. 9 % per annum between 2010 to 2016, higher than nominal gdp growth of 7. 7 % over the same period3. payoffs from investing in the real economy are one of the highest in the region, making malaysia an important profit centre for investors. 4 / 6 bis central bankers'speeches in the next seven months, the bank will introduce further regulatory measures to strengthen the foundations for a strong and resilient banking system. first, we will implement a mandatory employment reference check for financial industry employees which is aimed at removing employee information asymmetries during job transitions. second, we will share with the industry proposed revisions to the outsourcing policy to improve the governance and supervision of financial institutions, especially involving crossbor

muhammad bin ibrahim : “ state of the industry address ” remarks by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the asian strategy & amp ; leadership institute ’ s ( asli ) 21st malaysian banking summit, kula lumpur, 25 may 2017. * * * thank you for the opportunity to speak again at the asli malaysian banking summit. around this time last year, i recall delivering the keynote address at this summit after assuming the office of the governor. a year has passed, and it was indeed an eventful year. in the past year, we witnessed major forces that shaped the world. some improbable, others familiar. some transformative, others polarising. some deep - seated, others fleeting. in short, it has been a year of contrasts. in more ways than one, our perception of reality is also changing dramatically. the human brain can now communicate directly with computers, from powering prosthetic limbs to flying drones. months ago, both uber and airbus unveiled separate plans for flying cars. additionally, just earlier this week, artificial intelligence surpassed the world ’ s best player in go, believed to be the most complex strategy game, with more possibilities than atoms in the visible universe. on many levels, these developments contrast starkly with conventional wisdom and the traditional state of play in respective industries. yet, they are also driving thought leadership and genuine innovation. this theme of contrasts will underpin my observations today on the economy and the banking industry. a world of contrasts : synchronous recovery amid uneven risk profiles since the global financial crisis almost nine years ago, the pursuit of a sustained global economic expansion has eluded policymakers. global growth has been slow, fraught with risks and shrouded by uncertainties. there have been several false starts, with uneven and sometimes divergent growth momentum among regions. in fact, 2016 marked the slowest global gdp growth recorded since the crisis. positive developments have, however, recently emerged. a pick - up in industrial activity and trade, along with the increase in commodity prices, points to a quickening in growth momentum. significantly, this growth upturn is characterised by a synchronised expansion in both the advanced and emerging countries. this has given policy makers some cautious optimism for a sustained recovery of global growth and international trade. in particular, the improvement in advanced economies is encouraging as it is led by recovery in investment activity. emerging economies are benefiting from