muhammad bin ibrahim : raising awareness of financial knowledge in malaysia welcoming remarks by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at karnival kewangan 2017, kuala lumpur, 13 january 2017. * * * it is my honour to be here this morning for the opening ceremony of the inaugural finance carnival. the carnival is an initiative formed through the collaboration of various ministries, agencies and financial institutions. it aspires to raise the level of public awareness in three important areas : financial services ; knowledge of financial management ; and consumer protection. i would like to extend my appreciation to yang berhormat datuk johari bin abdul ghani, second finance minister, who has graciously agreed to join us today in officiating the carnival. finance has the power to transform lives the pursuit of financial knowledge is a key economic imperative. it also has the ability to transform lives. in today ’ s world, the ability and knowledge to save, invest and borrow are essential life skills, be it for individuals or businesses. for businesses, including small enterprises, financial knowledge is particularly important in generating income and to secure financing. various efforts have been undertaken to improve financial inclusion in malaysia. the results so far are promising. currently, the majority of malaysians ( over 90 percent ) have access to formal financial services. 92 % of adults have a savings account, while 98 % of users have performing financing accounts. based on a survey that was conducted, consumer satisfaction towards financial services increased significantly from 61 % in 2011 to 73 % in 2015. we will continue to invest efforts towards improving the performances in this area. with loans amounting to rm1. 5 trillion as at end - november 2016, the banking industry is the main source of funds to households and businesses, including small and medium enterprises ( smes ). recognising the pivotal role of the banking sector in our economy, bank negara malaysia will continue to develop the financial sector in a progressive and inclusive manner to ensure that all segments of society can benefit from this financing ecosystem. financial knowledge among businesses and individuals must be continuously improved while results are promising, our efforts in achieving financial inclusion need to be further intensified. there remain gaps in access to financing for certain segments of society, which require collective efforts from all. the bank is receptive towards these needs and remain committed to assist the public at all times. among the issues raised by businesses are the difficulties in obtaining funding to start

regulatory framework. i hope that this forum will seize the window of opportunity to bring together mutual interests that have long been somewhat at odds. as a collective, all of us here today, have a common interest in ensuring that captives demonstrate genuine value and valuable economic purpose. achieving this calls for strong corporate governance practices, greater transparency and sound financial management that commensurate with underwritten risks. ultimately, a new reality needs to be embraced by captives. in the long term, investing in technology, technical expertise, better and stronger compliance frameworks are worthwhile endeavors. it ’ s no more a choice. at stake is the viability of individual captives and an enduring captive industry that will add breadth and depth to insurance markets. conclusion the captive industry may well be at a turning point. in moving forward, how we start matters. efforts to develop the captive industry should be focused on better risk management, promoting macro - economic stability and encouraging new growth rather purely concentrated on tax planning. there are promising signs, among business and regulatory sectors, that there is a growing space for captives to play a role. it is important that we move forward to harness this potential, responsibly and thoughtfully. 4 / 4 bis central bankers'speeches