the notion of additionalities is not new, their link to how the development institutions are managed and governed remains generally weak. as a result, their important contributions are often not translated into tangible outcomes that are seen and felt by the stakeholders and the public at large. this leads me to my second point. traditionally the achievements of development institutions have always been measured predominantly by the volume of financing provided to the targeted sectors. there are several reasons for this. non - financial development additionalities are harder to quantify the cause and effects are also not always clear. as such, more effort and investments are required to collect the data for measuring socio - economic and development outcomes that are associated with such programmes. however, this must not hold back efforts for us to do better. they are a major channel for directing development, both at an international and domestic level. it is therefore, imperative that there is confidence in the effective and efficient use of funding aid to achieve the intended development goals. providing this confidence can be enhanced by creating a broader and robust mechanism to measure performance. performance measurement systems that accord greater quantification of development impacts will strengthen accountability frameworks, with many attendant benefits. it will further reinforce the government ’ s developmental agenda. it will provide a mechanism to address market failures. it will ensure that funds are allocated to the right sectors within the economy. effectively done, it 2 / 4 bis central bankers'speeches will increase the development financial institution ’ s credibility, reputation and potential as key players in advancing socio - economic development. in malaysia, we are encouraging these institutions to improve performance measurement frameworks to better capture the development impact of business activities. a number of them are already implementing frameworks to provide broader performance measures for value - based intermediation activities ( vbi ) which focus on the impact on the economy, community and environment. of particular importance, they need to measure granular outcomes such as creation of good paying jobs and expansion of capacity and capability. another commendable example is the performance measures published by the industrial development corporation of south africa ( idc ), which linked its activities to the creation of more than 340, 000 jobs in the economy between 2013 to 2017. out of this, 10 % were based in rural areas. approximately usd3. 3 billion of idc ’ s financing - related activities could also be traced to the specific economic empowerment of targeted groups such as youth and women. cultivate a strong culture of innovation within to increase value - add and catalyse

the non - lending roles more than ever, development financial institutions need to step up to promote new growth areas. they should perform a broader role to stimulate economic activity that would not otherwise take place. they could also improve the quality and scale of such activities. they can provide unique value propositions in terms of advisory and nurturing new growth sectors to become profitable and thus, attractive for private investors. i will highlight two successful examples. firstly, in the korean wave example, they were the first to spearhead investments in the film and music industry. at that time, commercial banks did not have the capability to assess the viability of the industry, nor accept the intangible assets offered as collateral. it was only much later, 1 / 4 bis central bankers'speeches when the industry recorded healthy profits that private investments followed. the success speaks for itself. between 2008 and 2011, private domestic and foreign investments in the culture content industry had quadrupled to more than usd 157 million. the second example is uganda ’ s first ever private bond issuance by a multinational mobile telecommunications company. the provision of a financial guarantee by a development financial institution helped to connect uganda ’ s poor and low income population in more than 20 rural communities by enabling access to telecommunication services. this culminated in the telecom industry that now provides 135, 000 jobs for ugandans and contributes 1. 4 % of its gdp. taking lessons from these examples, i believe that development financial institutions need to possess three key traits to promote and champion the new growth areas : a. first, they must have specific mandates to develop and prioritise niche segments identified to be of strategic and economic importance. these will give them legitimacy with funders and partners ; b. second, affiliations with government, ministries and agencies to facilitate the design of appropriate government support. this will enable them to take higher risks ; and c. third, a broader focus on socio - developmental goals allows risk - return trade - offs to take into account positive externalities for the economy. the lessons we learnt imply that leaders must recognise and align their priorities to steer their respective institutions to contribute more broadly and strategically to economic development. this will include playing a more active role in technical assistance, and serving as key repositories of specialist knowledge, resource aggregators for strategic development projects and credible advisers to the government. these ‘ additionalities ’ are important ingredients in ensuring the effectiveness of development financial institutions. strengthen accountability frameworks through performance standards that emphasise development additionalities while