market, this will have positive spillovers in lifting the quality of jobs in the industry more generally and reversing the brain drain of insurance talent. secondly, insurers need to stay ahead of the curve in leveraging new technologies to be more accessible, more efficient and more agile. many forces will be driving insurers to be more innovative. the removal of tariffs and changes introduced under the life framework will drive the growth of new products and delivery channels. as social media and other forms of communication change the way insurance is accessed, traditional business models will be at risk of being “ uberised ”. even where face - to - face contact remains important, for example in the purchase of long term life insurance, the effectiveness and cost efficiency of agents will be transformed by enhancements in productivity arising from better data analytics. the bank will continue to pursue the innovation agenda. technology advancement is here to stay. revolution in business brought about by technological advancements will change the way we live and do business. as a catalyst for such innovations, i am pleased to announce that following a public consultation process, the bank has today issued details of the financial technology regulatory sandbox. effective immediately, financial institutions and fintech companies will now be able to pilot innovations in a controlled, live - test environment with appropriate flexibilities accorded. this will include flexibilities under existing regulatory requirements that apply to outsourcing arrangements and access to customer information, subject to compensating safeguards. the experience from the sandbox will provide input into formulating more proportionate regulations that will spur the orderly growth of new innovations in the financial industry, including insurance. we see significant potential for positive disruptions to transform the business of insurance and takaful in malaysia – from the way insurance is consumed, to opportunities for addressing leakages to drive insurance costs lower. indeed, the greatest gains from technological innovations may well be reaped in the more mundane aspects of running a business efficiently. today, money is still being left on the table from inefficiencies and leakages in the insurance system. from inefficient manual bis central bankers ’ speeches processes to the slow take - up of electronic payments, there are large gaps in the supply chain that unduly increase the cost of insurance and limit efforts to combat insurance fraud. the insurance industry needs to accelerate its pace in terms of its technological adoption or else events will dictate the shape of the industry ’ s future.

aznan bin abdul aziz : banking and esg revolution – going beyond aspirations closing remarks by mr aznan bin abdul aziz, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the aicb - abm 2nd malaysian banking conference, kuala lumpur, 27 june 2023. * * * y bhg tan sri azman hashim, chairman of the asian institute of chartered bankers ; y bhg dato khairussaleh ramli, chairman of the association of banks malaysia, vice chairman of aicb and group president and ceo of maybank group ; esteemed guests, ladies and gentlemen assalamualaikum and salam sejahtera it's past 5 pm. and i have the unenviable job of keeping you from leaving after a highly productive and packed day. it is simply incomplete to adjourn without the regulator relaying its thoughts and expectations. i understand that the day started with a focus on where we, as a country, are in the climate journey. we know that 2050 is the year – the earliest point by which malaysia aspires to reach net zero ghg emissions. many significant policies are now either in place or are due to be finalised soon to get us to 2050. these include key frameworks and roadmaps for malaysia to transition such as the long - term low emissions development strategy ( lt - leds ), nationally determined contributions roadmap ( ndc roadmap ) and national energy transition roadmap ( netr ). these policies will enable yourselves and your clients to better align your transition plans. for the international community, these policies provide a clear signal on the country's seriousness about 2050, despite contributing only 0. 7 % of global ghg emissions. along the transition journey, there are risks to manage, and opportunities to be seized. technology is key. so is finance. your actions and responses are critical. the partnership between you and your clients is critical. your clients would need the " how " in terms of new forms of financial instruments – transition finance, adaptation finance and blended finance to name a few. for the smes, this goes beyond financing. for instance, they need the " how " in terms of where and how to begin greening their operations, tools to help them understand, measure and track their own emissions profiles. i am delighted and encouraged to see the malaysian ecosystem and accompanying tools continue to mature. the progress thus far is