connection with the international role of the euro : – 3 – how fast and to what extent will the euro become a major international investment and reserve currency? can the euro take over the d - mark ’ s role as the second most important investment and reserve currency? naturally, the euro will play a significant international role as an investment and reserve currency. if this does not turn out to be the case, it will be an enormous – and scarcely conceivable – surprise as well as a bitter disappointment. the fact that the euro area is already regarded as a safe haven confirms this assumption. it is simply a fact of life that major international currencies are used by investors from time to time as a safe haven. however, this can also be a problem in certain situations, especially for the exchange rate. but it is the future stability of the euro that will determine its actual role in the concert of world currencies. and two key criteria for this will be • sensible monetary policy decisions by the ecb governing council, and • stability - oriented behaviour in those aspects of economic policy which remain a national responsibility, especially fiscal and wage policies. given such a policy mix, the euro can assume a major international role – in line with the size and economic importance of euroland – and also make its contribution to global stability. iii and that brings me to the subject of this conference : ‘ the euro as a stabiliser in the international economic system. ’ this title expresses great expectations of the future single currency. • in what sense – if at all – does the international economic system need a stabiliser? • and if it needs one, how can a currency help to meet such a need? let me begin with the second question : as a general principle, currencies cannot solve structural problems relating to the global real economy. and as far as the first question is concerned, it must be said that, while the world economic setting is difficult at the moment, there is certainly no cause to talk of a fundamental instability. in recent weeks the financial markets have at least calmed down a little. the world financial crisis which many people predicted looks unlikely to occur at the moment. it is true that a number of countries are currently suffering crises entailing considerable local growth losses : • in the south - east asian countries this is a direct consequence of the financial crisis. but at the moment there are some encouraging signs of an improvement in certain countries. • japan continues to suffer, in particular

their financial positions. if done well, not only will you help them weather through the current financial storm, you have the golden opportunity to put them in a position to better insulate themselves from the next crisis, whatever or whenever that may be. the importance of ethical financial planning for many, financial planning can be a complicated and daunting task. with increasing complexity and choice of financial products and services in the market, trust becomes a fundamental element to ensure clients are offered products that are most suitable to their needs and financial circumstances. to gain this trust, financial advisers must adhere to high ethical standards in all their dealing with their clients. this in turn requires financial practitioners to place the best interests of their clients above their own interests of making fast profits or earning high commissions. to ensure that all financial service providers strive to uphold the highest levels of professionalism and integrity, the bank issued enhanced corporate governance standards in 2016. in november 2019, the policy document on fair treatment of financial consumers was issued. this policy document sets six principles or outcomes which financial service providers are required to deliver in their dealings with financial consumers. key of which includes the requirement for the board and senior management to set clear expectations on fair treatment and ensure that these expectations are embedded in the institution ’ s corporate culture and core values. the existence of such rules coupled with effective enforcement when these rules are breached is essential, given that failures of corporate governance have been at the root of many wellknown cases of institutional failure. a recent example being the successful conviction of the operators of the infamous genneva gold investment scheme for illegal deposit taking, which has landed its former directors and advisers in jail. and certainly there are many more. let us all work together to weed out and prevent such nefarious schemes from taking root in malaysia. role of financial practitioners most financial decisions at the individual level are determined by a person ’ s behaviour and mindset. in view of the uncertain economic conditions we are faced with, you play an important role in nurturing strong relationships with consumers to facilitate positive behavioural changes in them. given the right intervention, motivation and self - discipline, we can elevate the level of financial literacy of any individual while promoting healthy financial attitudes and behaviour. in relation to this, i would like to extend my sincere thanks to the mfpc committee members for its effective support and partnership with the financial education network1 or fen. i applaud the proactive efforts by financial advisers to publish educational and inform