while the 3 - month intervention rate was maintained at 5. 5 % for the first nine months of the year, the low interest rates ensured that monetary conditions were conducive to reinforce other counter - cyclical measures to promote domestic activity. following the events of september 11 and the heightened risks towards further weakness in the domestic economy, bnm reduced the intervention rate by 50 basis points to 5 % on 20 september. low and stable interest rates, ample liquidity and the low inflation rate contributed towards providing a positive domestic environment. in the low interest rate environment during the year, bank lending and financing via the bond market increased. total financing through loans extended by the banking system and pds issued by the private sector increased by rm33. 5 billion or 6 % in 2001. at the same time, financing to the small and medium enterprises ( smes ) was sustained. the significant progress that was achieved in financial sector reform and restructuring in 2001 has enabled bnm to shift its focus from managing banking sector problems to the medium and longer - term issues of developing a more competitive and resilient banking sector. the financial sector masterplan that was launched in march 2001 aims to provide the blueprint for the development of financial sector over the next ten years. to date, 9 out of the 119 recommendations under the fsmp have been fully implemented. in addition, 22 recommendations are being implemented on an on - going basis. outlook and prospects for the malaysian economy in 2002 as we enter the year 2002, indications are that world trade is expected to recover to about 2. 5 % in 2002. growth in the major industrial countries as a group is expected to stabilise at 1. 1 %, reflecting a stronger growth of 1. 4 % in the us economy. malaysia is well positioned to benefit from the emerging recovery in the global economy. real gdp growth in the malaysian economy is projected to recover to 3. 5 % in 2002. the projection is based on stronger growth in private consumption, a modest recovery in private investment, sustained public sector expenditure and moderate growth in exports. current domestic indicators suggest that the malaysian economy is in the early stages of recovery. the index of leading indicators has shown positive growth for six consecutive months. both the decline in exports and manufacturing production have also begun to moderate. while inflation is expected to edge up slightly, it is forecast to remain below the 2 % level. on the domestic front, resilient domestic demand and the recovery in external demand is expected to

jessica chew cheng lian : opening remarks - central bank payments conference opening remarks by ms jessica chew cheng lian, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the central bank payments conference, kuala lumpur, 11 june 2024. * * * first and foremost, i would like to thank the organisers, currency research, for inviting me to speak today. evolution of payments the payment system lies at the heart of economic activity. if money is the lifeblood of the economy, then payment systems represent the veins that allow money to flow to where it is needed. while this fundamental reality has not changed, over the past few decades, technological advancements have dramatically changed the form, methods and experience of payments in our daily lives. not too long ago, we waited anxiously for cheques to clear to pay our mortgages or for funds to transfer across borders for our family needs or children's education. carrying cash in our purses or wallets was as automatic as putting clothes on to leave our homes. today, many of us conduct daily financial transactions digitally and through our mobile phones – with a level of convenience not possible or imaginable before. in the wholesale payment space, the transformation has been no less significant. we have moved to highly automated, real - time systems that enable continuous and instantaneous settlement. the financial system has also become more efficient as settlement cycles for securities have been gradually reduced. similar to retail payments, many of these improvements have been enabled by technological progress, creating greater efficiencies in the financial system. central banks'mandate for payments these developments have important implications for the role and responsibilities of central banks in relation to payment systems. while this role may vary across countries, central bank responsibilities over payment systems generally stem from an interest in : supporting the implementation of monetary policy ; preventing systemic risks that can arise from the transmission of financial stress through the payment system ; and promoting fair, efficient and inclusive operations of payment systems given their central role in the economy. 1 / 5 bis - central bankers'speeches in the case of bank negara malaysia ( bnm ), our responsibilities have two dimensions. first, as overseer to ensure the safety, reliability and efficiency of the payment system. second, leading and supporting a developmental agenda to ensure that the payment architecture remains fit for purpose in support of economic activity. significant changes occurring in the payment landscape have impacted the way central banks view their responsibilities for payment systems in at least two ways.