intermediaries alike, the bank developed dedicated webpages for investors interested in the developments of the malaysian financial market. there are continuous updates on what is new in our markets, and important updates on foreign exchange administration rules that market participants may use as a point of reference in their ringgit dealings. many of these initiatives focus on increasing efficiency, access and transparency. however, the reality is that markets will always be imperfect. in the 1970s through to the 1990s, we were told that financial markets can be relied upon to be efficient, that prices will reflect all available public information and hence appropriately reflect the fundamentals of an instrument or asset. regulators were asked to leave markets alone. liberalisation and deregulation were the two key themes and policy push on emerging markets that would enable the development of liquid financial markets. then in the 1990s, the asian financial crisis happened. together with liberalisation and deregulation came excessive speculation and destabilising capital flows. the costs of adopting developed market policy approaches to developing and emerging markets proved high. in dealing with the crisis, we rolled back selected liberalisation initiatives and deinternationalised the ringgit. the latter enabled ringgit trading to be brought back onshore and protected it from the laissez faire offshore markets that were prone to such volatility and risks. this non - internationalisation policy remained intact through the years. yet markets found a way to circumvent it through the non - deliverable forward market. the 2016 enforcement reaffirmed the ringgit non - internationalisation and remains a strong prudential safeguard against excessive volatility and external risks. based on our experience and understanding of the market and its imperfections, there will always thus be a need for rules, regulations and the regulator to see to that market imperfections are not exploited or lead to instability, and that markets continue to be ‘ fit for purpose ’ or serve their functions. in emerging markets, the industry also needs to come together to work for continued development. only then will we be able to continue progressively growing in a stable and healthy environment. charting the upcoming financial sector blueprint while we see continued growth, a greater understanding of what is to come is key to maintain such momentum. the operating landscape we are entering is expected to be equally challenging and heightened with unknown risks. global growth outlook is forecasted to remain subdued, with slow growth expected from advanced economies and this may inhibit advancement in emerging economies. financial market conditions are expected

to be increasingly complex with rapid changes in technological advancements. the ever - changing geopolitical positioning also continuously shifts investment priorities and risk appetite. closer to home, while domestic growth is expected to remain sustainable, many uncertainties and challenges persist, and thus it is critical to ask ourselves, how do we respond? with the current 10 - year financial sector blueprint approaching the end of its horizon in 2020, the time has come to chart our path for further development. at the bank, we are in the midst of 2 / 4 bis central bankers'speeches much research, analysis and formulating possible paths for our future. based on this, we will be looking to engage financial markets stakeholders to set the framework for market development over the next five years. we have set a shorter horizon, acknowledging that in this era, changes occur rapidly and the longer horizon is rife with greater uncertainty than before. while these discussions are ongoing, i wish to share three main focus areas for the next plan as follows : firstly, given the active adoption of advanced technology in all aspects of our lives, the digitisation of the financial markets is not only an obvious step forward but an inevitable one. with evolving business practices and economic activities, there is urgency for us to adapt and elevate our infrastructure to ensure that our markets remain competitive and dynamic, while preserving an environment of financial and market stability. while rules and regulations will certainly be there to ensure orderliness, fair and ethical conduct, risks of a rapidly changing environment would require flexibility and agility in their design. this is both good and bad news. the good news is that the design of rules could be more principle based, outlining key parameters and outcomes, leaving the ‘ how ’ to achieve them to the best practices of the industry. the bad news is that the industry will have to be independent in figuring out and ensuring compliance. consequently, there is a need for the industry to further elevate its capacity and capability for the new environment. the goal is not only the greater adoption of digital technology in financial services which will undeniably reshape customer behaviour, business models and the traditional structure of financial intermediation for the better. it is also the push for the industry to adapt, innovate and change. in the banking sphere, digital banking is just around the corner. the bank will issue a discussion paper on this by year end and perhaps, a regulatory framework by next year. digital insurers could be next. what