that advancements in the statistical field have spurred an even more rigorous and scientific approach to surveillance and policy formulation. given that policymakers are often faced with wide - ranging, difficult and significant trade - offs, sound statistical analysis has a fundamental role in managing both short - and long - term policy challenges. in the current environment, forward - looking macroeconomic and financial surveillance is more important than ever to detect potential risks early, so that pre - emptive policy action can be taken. of importance, is the need to be aware of rapidly changing information sets amid increasing financial innovation and greater global interlinkages. policymakers have therefore developed tool kits that have not only taken into consideration baseline forecasts, but crucially, on other plausible scenarios. in this aspect, larger and more diverse data sets that are complemented by more sophisticated analytical tools have allowed policymakers to improve the effectiveness of macroeconomic management. through more rigorous scenario analysis exercises, authorities are better able to identify challenges, and form a more complete view of future conditions. this is well exemplified by the recent emphasis on the need for regular stress testing to understand the effects of shocks on the solvency of individual banks, the stability of the entire financial system, the broader economy and, more importantly, the feedback effects. the roles of granular statistics and sound stress testing methodologies have become vital. while the recent global financial crisis has necessitated a substantial policy focus to address short - term challenges, policymakers also need to keep sight of the economy ’ s long - term vision. continuous structural reforms are needed to strengthen fundamentals and improve economic resilience. this involves measures to remove structural bottlenecks, improve productivity and promote innovation and enhance competitiveness. formulating such structural policies to improve growth prospects hinges on rigorous empirical research in these areas. for malaysia, the economy is currently undergoing a transition towards becoming a higher value added economy. this has involved setting clear, time - bound and measurable targets, to allow for the policy approach to be focused. this has depended heavily on the availability of good data and statistics that capture developments across all sectors. it also enables us for the monitoring of the progress and the effectiveness of the policies. it is also now widely recognised that economic growth can only be sustainable if it is inclusive. growth will only slow as income disparities widen. it is also recognised that financial inclusion is an important contributor towards achieving such a more inclusive economic development. bank negara malaysia has therefore over the decades implemented initiatives to extend

and improve the access of quality financial services to all segments of society. advances in data collection and computation methodologies has been a crucial enabling factor in the progress made on financial inclusion not just in malaysia, but also in many other countries. unconventional information is now often used to assess a person ’ s credit worthiness when there is insufficient traditional information to build a credit score. this can range from electronic records of past utilities bill payments and even reputations on social media 3. this has led to vast improvements in access to credit for the previously excluded segment of population. meanwhile, the compilation and analyses of detailed data on the financially underserved is a significant area that underpins international cooperative efforts to advance the global financial inclusion agenda. the alliance for financial inclusion ( afi ) for example, lenddo in the philippines, mexico and colombia. bis central bankers ’ speeches comprising of more than 90 member countries established the need for measurable national goals based on a set of quantifiable and time bound common indicators among its membership. these results serve as an objective basis for the afi members to share experiences on the effectiveness of their policies. statistical enhancements for a better tomorrow great strides in the field of statistics have resulted in significant economic benefits. however, as the world further transforms, new challenges emerge and much more needs to be done going forward. the increase in availability of data and information is not without risks. while the wealth of new data has indeed made markets more efficient and has supported better decision making by the private and public sectors, it has also brought about new risks of fraud, theft and invasion of privacy. therefore, existing confidentiality policies, regulation and data governance need to be reviewed and updated to account for these new risks, so that innovative activities can thrive without threats to individual safety and interests. additionally, in managing the increase in global interconnectedness, greater international collaboration and coordination in the field of statistics is needed to enhance cross - country data coverage, promote greater standardisation of data and, more importantly, to create a shared understanding of cross - border risks and transmission of shocks. the dynamic nature of the global economy and financial system implies that the relevant set of data needed is a constantly moving target. therefore, continuous and concerted efforts by both the users and compilers of statistics to close data and information gaps are indeed crucial. finally is the need for the continued emphasis on capacity building of human capital. from researchers and academicians, to statistical compilers and policymakers, there is an urgent