emerging countries enjoy better coverage ratios from their fx reserves, even if historical experience reveals that, when other fundamentals are weak, high reserves may not offer much protection against market volatility. second, inflation expectations now appear better anchored in a broad range of emerging countries, as a direct consequence of the growing credibility of inflationtargeting regimes. in several cases, public debt is also better managed than in the past, with countries extending the average maturity of their debt and increasingly relying on local currency - denominated issues. finally, the real effective exchange rates appear to be mostly fairly valued or even undervalued after their widespread depreciation in 2018. this said, endogenous sources of vulnerability to future global market turbulence still exist in emerging countries. they need to be addressed if future bouts of local market volatility are to reduce in both size and duration. i would like to mention, in particular, the growing indebtedness of the corporate sector and, to a lesser extent, also of the household and government sectors, which means that, for most of the emerging page 7 of 10 countries, total debt ( public plus private ) is now well in excess of the levels that prevailed before the global financial crisis. similarly, an increase in fx liabilities ( mostly by the private sector ) and, in several cases, growing mismatches between fx - denominated assets and liabilities poses risks in some countries. indeed, even if there is no such mismatch at present, the levels of both fx assets and liabilities are often large relative to gdp, which means that any changes in valuations can quickly generate important swings in a country ’ s net international investment position. finally, the experience of south africa also highlights the dangers linked to an increased financial fragility of state - owned enterprises ( soes ), as the hard - currency liabilities of soes can rise quickly, eventually turning into additional credit risks for the sovereign. policy options to deal with turbulent times in the beginning of these remarks, i pointed to the support which emerging market currencies and fixed - income assets have received from the rising expectations of us interest rate declines and the fall in long - term bond yields, both in the us and in other advanced economies. such developments ensure that the yield differentials between emerging countries and their advanced counterparts remain relatively wide, offering some buffer against capital outflows. however, this equilibrium is fragile. if the world economy proves more resilient

financial requirements are becoming increasingly more sophisticated. this has resulted in a major reorientation of the banking industry to become consumer driven and to become more focussed on consumer needs. this has brought new financial products and services for consumers. the rise of consumerism demands that products and services can no longer be just generic but must now be tailored to meet consumers'evolving needs. with the rise of consumerism, the need to create informed consumers is even more important. as the financial sector continues to rapidly evolve, offering sophisticated products and services to cater for greater and more diverse needs, consumers need to become even more financially savvy. while the consumer has an important responsibility to become more informed, financial service providers, the regulators and the authorities have an important role to provide the enabling and conducive environment that nurtures consumer empowerment. indeed, consumer empowerment begins with financial awareness and consumer education. this in part can be achieved through greater disclosure and by increasing the education outreach to consumers thereby enhancing their ability to make informed financial decisions. ladies and gentlemen, this exhibition aims to provide an enabling platform for consumer empowerment. myfex2007 is a conscious effort to raise financial awareness by bringing together the various entities in the financial system that includes the industry, regulators and other agencies that provide information, the avenues for redress and financial advice with the aim of creating financially informed consumers. in essence, this one stop centre creates a comprehensive opportunity for consumers to improve their financial literacy and for the financial players to engage the consumers. an important thrust of our policies at the central bank is financial inclusion. this is to ensure that every economic activity, geographical region and segments of society have access to financial services thereby promoting a more balanced growth. financial inclusion is supported through a number of strategies amongst which includes increased access to financial services, access to financial information and advisory services and consumer education. currently, 98 % of the adult population in malaysia have a savings account. given this greater financial inclusion, banks need to recognise their role and their special relationship with their customers. customers expect banks to provide relevant financial information to them to ensure that they will be able make informed judgments. avenues for the public to seek redress is also an important part of the financial safety net. the financial mediation bureau provides an alternative redress mechanism between the service providers and consumers on financial disputes. in addition, with the objective of promoting prudent financial management, the credit counselling and debt management agency offers free advisory services. this is to ensure the