zeti akhtar aziz : economic ties between china and malaysia address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the launch of industrial and commercial bank of china ( malaysia ) berhad, kuala lumpur, 28 april 2010. * * * it gives me great pleasure to be here today on the official launch of industrial and commercial bank of china ( malaysia ) berhad ( icbc ). the establishment of icbc in malaysia, the largest commercial bank in the world today, represents an important development in forging stronger economic and financial ties between the people ’ s republic of china and malaysia. this licence is issued pursuant to the arrangement entered into between the government of malaysia and the people ’ s republic of china in 2009, reinforcing a long - term relationship that has been strengthened over the years. the presence of icbc, in our financial system will pave the way for increased business and investment opportunities between our two countries. as asia leads the global recovery and with the progressive liberalisation in the region, the economic integration of the asian region can be expected to strengthen further. today, intraregional trade in asia has increased to an average of 50 % of the total exports of the region as compared to 32 % in 1995. the underlying structural and demographic changes in asia are expected to reinforce this trend. in addition, as domestic demand in the regional economies increases, it will provide further impetus to intra - regional trade and to the overall prospects for asia. in the area of infrastructure development in asia, the overall investment requirements for the next ten years are estimated to be about usd8 trillion. to support these developments, the regional financial integration process in asia needs to be accelerated and deepened. significant progress has already been achieved in strengthening cooperation and collaboration efforts amongst regional policymakers within the asian region to ensure that financial stability in the region is preserved. efforts have also been taken to develop the financial markets in asia. in addition, after a decade of financial reforms, the financial systems in asia have emerged resilient. while the financial systems in several of the advanced economies continue to be confronted by unresolved challenges, financial systems in the region have continued to function and perform well to support private sector economic activity. financial institutions in asia, have in fact, continued to expand their reach within the region during this period to support and facilitate the regional financial and economic integration. as regional financial integration accelerates moving forward, this would contribute towards sustaining the future

range of users from households to micro enterprises and small and medium scale enterprises. also important is the development of the enabling environment conducive for innovation of the range of financial products and services needed for the spectrum of society and businesses and for cost effective pricing to take place. this will be reinforce by the supporting infrastructure for the effective management of risks by financial institutions ; strengthening of the development financial institutions ; and putting in place a comprehensive consumer protection, redress and education framework. these strategies are pursued under a collaborative approach that effectively combines with the efforts by the private sector. let me conclude. policymakers have a critical role and a distinct opportunity in these present times to effect significant and positive change in the development of more inclusive financial systems. this change will not only catalyze progress for the poorest and marginalized segments of society, but also uplift those groups that are already in the financial mainstream but are highly challenged by the environment. this will ultimately serve to achieve truly inclusive growth and development. this is an important agenda, and our efforts must be trained on interventions that will encourage competition, provide the right incentives to both financial service providers and individuals, and help overcome access barriers in ways that will contribute to growth and stability. while the challenges are significant, the prospects for improved living standards and hopes for the millions of people in poverty and the struggle for survival should encourage us to persevere and advance forward with greater focus and purpose. before i end my remarks, allow me to express my appreciation to our key partners in making this forum a reality. i wish to record my appreciation to her royal highness princess maxima for her support to this forum in her capacity as united nations special advocate for inclusive finance for development. the alliance for financial inclusion, the consultative group to assist the poor and the oecd ’ s international network on financial education have become important collaborators in our aspirations to promote more inclusive financial systems. i would also like to thank representatives from aflatoun and centiq in the netherlands and all the policymakers who are participating as speakers and experts at this forum. on that note, i wish all of you a productive forum over the next two days. bis central bankers ’ speeches