money as the lifeblood of any economy. on many fronts, we find ourselves in unchartered territory – often uncomfortably so. in response, central banks and financial regulators are similarly expanding resources both to better leverage technology in performing our core functions of promoting monetary and financial stability, and to defend against its attendant risks. central to both these goals is our ability to evolve – and in many respects, re - define – our governance, risk and control environment for the age of disruption. why is this necessary? because new financial technologies are presenting significant opportunities, but also enormous challenges for central banks and financial regulators. 1 / 4 bis central bankers'speeches they hold out the promise for achieving broader and more inclusive access to financial services, characterised by greater speed and convenience, and lower costs. the emergence of new financial institutions and multiple payment systems could dramatically improve financial intermediation and reduce concentration risks. greater access to data also carries tremendous value for better surveillance and policymaking. however, these developments also carry with them new risks and challenges – from more interconnected systems through which risks can transmit in and across organisations and financial systems ; to concerns associated with privacy, misinformation, security and criminal abuse. moreover, as financial systems continue to undergo major technological transformations, their resilience remains largely untested during periods of crisis. technological disruptions will continue to push the limits of our ability to identify and pre - empt risks. this will also increasingly place authorities who are responsible for financial stability, at odds with a desire to encourage and not stifle innovation. managing this balance will require us to approach governance, risk and controls with fresh lenses. for bank negara malaysia, this has entailed a number of strategic imperatives. the first has been a sharper focus on strengthening regulation and supervision to promote resilience. the bank recently published new standards on risk management in technology for financial institutions and strengthened our expectations on the management of outsourcing risks by firms. financial institutions will also be required to develop recovery plans for surviving a range of stressed scenarios, a key objective of which is to preserve the continuity of critical economic functions performed by systemic financial institutions. work is also in progress to establish a financial sector cyber threat intelligence platform. the platform which will be operational in the coming year, seeks to overcome barriers to critical information sharing on cyber threats and will have the capacity to collate, aggregate, analyse and share cyber threat information from multiple sources in real time. we have

muhammad bin ibrahim : scaling up excellence – creating opportunities while mitigating risks keynote address by mr muhammad bin ibrahim, deputy governor of the central bank of malaysia, at the regional conference on money services business “ scaling up excellence – creating opportunities while mitigating risks ”, kuala lumpur, 19 may 2014. * * * i ’ m glad to be here with you today to join mr mathew a. verghis in welcoming you to this regional conference on money services business. on behalf of bank negara malaysia, i would like to thank the world bank, the malaysian association of money services business, and the international association of money transfer networks who partnered with us in organising this event. this conference aims to bring together regulators and industry players to review developments in the money services business industry at a time when there are significant changes occurring in the financial industry. in many countries, money services business plays an important role in complementing banking institutions to provide financial services to the community, in particular, the unbanked and small business communities. given the forces of change that are reshaping the financial industry, it is timely to consider how these forces impacted the expectations, opportunities and challenges for money services businesses. the money services business industry contribute to an important purpose in our communities. they provide financial services to segments of society in both the developing and developed world that do not have access to basic banking facilities and services. increasingly, money services business provides and support tourism, business travel and cross - border trade activities in a more globalised world economy. according to a world bank report, it is estimated that nearly 1 out of 7 persons is a migrant, reflecting the large and diverse diaspora community in the world today. worker remittances to developing countries were in excess of usd400 billion last year and represent a key source of external resource flows. these flows support economic growth in developing countries, far exceeding official development assistance. more than usd 1 trillion was spent on global business travel expenditure in 2013 and more than 1 billion in international tourist arrivals are recorded each year. in 2013, business activities supported world trade volume of over usd 23 trillion. all of these developments have created new and greater demand for remittance, currency exchange and other financial services that can be offered by money services businesses. the industry itself has also become more diverse. advancements in technology have enabled new business models, offering new product and service, innovations and forming of new alliances. these enhancements have the potential to further lower cost and increase convenience