##lif. the fide programme has become a standard bearer for exceptional directors ’ education with its deep dive into the nuts and bolts of practical governance, its link to supervisory expectations, and a delivery approach that effectively combines the use of exceptional faculty and the rich experience, knowledge and insights of the participants. to date, more than 600 directors from financial institutions, including directors from the regional offices of both foreign and domestic financial institutions, have attended the fide programme. this has had a visible impact that in bringing about important positive changes in how boards function and interact with senior management. both fide forum and iclif are uniquely positioned to advance corporate governance in the financial sector. after all, they bring together those who represent the ultimate governing body of financial institutions, with great responsibilities and accountability. such an opportunity must be capitalised and not wasted. fide forum and iclif should therefore complement each other and avoid duplication. there are significant benefits to be gained from an effective partnership where resources can be channelled to increase the collective impact of programmes and initiatives by the two organisations. in my own engagements with the industry, over the years, coordination and cooperation among financial institutions can become game changers for the industry. in this respect, we should fully appreciate the distinctive purpose of iclif and the fide forum and how they coordinate with each other within the space of directors ’ development. with close coordination and cooperation we can avoid the redundancies and wastage and realise the synergistic benefits from the alliance between the two organisation. being a director of a financial institution will demand a lot from the individual. it is a position of trust where integrity is the norm. it should be, given the critical role of financial institutions in any economy. bis central bankers ’ speeches as a network of financial institution directors, fide forum provides a valuable resource for directors as they navigate the heavy responsibilities that come with the position. fide forum should continuously raise the bar on director performance by advocating best practices and providing support to its members in helping solve real problems confronting boards today. it should be a respected voice on important issues of corporate governance, an epitome of best practices of corporate malaysia. most importantly, it should build an enduring legacy for future leaders of financial institutions by representing within its collective membership the highest standards of integrity, professional conduct and intellectual integrity. indeed, fide forum ’ s success must surely be measured not only by how well it serves its current membership, but also by how it expands its reach and influence to attract

are a few things that we could do for the smes. first, we can lower the financing cost for smes which obtain guaranteed financing under cgc. on the average, smes are being charged between 10 to 12 percent. this is about blr plus 5 to 6 percent. the rate imposed is much too high. it seems that pricing mechanism doesn ’ t price properly the guarantees given by cgc. we ought to work on this. on the part of cgc, we need to response quickly to the banks when guarantees are being called upon. an ideal situation is akin to an irrevocable undertaking where once a guarantee is called upon, it will be made good immediately. second, to intensify promotion and awareness program on cgc products and services. cgc needs to work closely with the trade associations and generate more media exposures through radios and tvs. make cgc a household name among the smes. third, expand further advisory services, its reach and contents. not all smes require financing, some might need more “ hand holding ”, and rather than access to financing above. lastly, come up with new and specific guarantee products for new growth area, start - ups and young entrepreneurs. existing guarantee products might not be suitable to meet the needs of these groups. cgc should embark a study on this matter and come up with an action plan. before i end my speech, i would like to express my heartfelt congratulations and appreciation to the board, management and staff of cgc for 40 years of service to the malaysian smes. it is our greatest wish that cgc will continue to walk and grow alongside our smes in our effort to make our country prosperous. bis central bankers ’ speeches