and stable employment conditions have accorded policy flexibility to support the growth during this period. going forward, the process of rebalancing the economy to enhance the competitiveness of the economy can be expected to intensify and widen. • there will be a greater rebalancing between the role of the public and private sectors in the economy, with the public sector activity focussed on providing the enabling environment to strengthen the role of the private sector in the economy. • while large domestic corporations and multinational corporations will continue to be important in the economy, the role of the small and medium - scale enterprises will gain significance. • greater focus will be given to secure competitiveness on a more comprehensive basis in terms of other dimensions such as productivity and efficiency, labour quality, logistics, research and development, the delivery system and the supply chain. malaysia will also continue to leverage on our low country risks in terms of the political stability, industrial maturity and the supply of a skilled workforce. to promote endogenous sources of growth, greater focus has been directed at promoting greater private investment, including by the small and medium enterprises ( smes ). the financial infrastructure and incentive structure will continue to be enhanced to promote investment in new sub - sectors in particular, the services, agriculture and manufacturing sectors. on the external front, while there has been a synchronisation of growth among the major economies, there has also been some rebalancing of the relative strength of the growth among the economies. the increase in the expansion of world trade and the strengthening of labour market conditions in most of these economies suggest continued and self - sustaining growth. meanwhile, the asian region has shown strong growth performance amidst robust intra - regional trade. this will be mutually reinforcing for the region in expanding the cumulative domestic market of the region and thus contributing to the overall growth prospects of the region. while growth remains strong, there are risks on the horizon. the recent moves to raise interest rates have however aimed to adjust the economic expansion to converge to more sustainable levels. policies in a number of the major economies have now shifted from addressing a deflationary environment to a more neutral position that is aimed at removing the inflationary bias. this is in contrast to an anti - inflationary stance which would require aggressive tightening. on the domestic front, malaysia continues to be highly integrated with the world economy in which economic and financial developments in our major trading partners will have implications on our economy. the strengthening of our economic structure, our

muhammad bin ibrahim : the way forward for development financial institutions opening address by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the global symposium on development financial institutions “ the way forward for development financial institutions ”, kuala lumpur, 19 september 2017. * * * selamat datang ” and a very warm welcome. thank you for the opportunity to speak today at this important gathering to discuss the way forward for development financial institutions. in 2012, the music video “ gangnam style ” by korean pop artist psy took the world by storm. being the first video to record more than 1 billion youtube views, its infectious dance moves have become universally recognised, transcending borders and social status. the video marked the beginning of the rise of the korean cultural phenomenon known as korean wave or “ hallyu ”, a new growth area for its economy. today, the export of korean culture content, including films and music, is estimated at usd83. 2 billion. in under a decade, the sector grew to contribute 0. 7 % to south korea ’ s gdp in 2011, supported over 67, 000 jobs and generated usd3. 3 billion in tax revenues. this extraordinary rise of the korean wave can be attributed to the growth of investment in the creative industry. the industry was boosted by the government ’ s strategy to prioritise the sector as an engine of growth after the asian financial crisis. the korean government had earmarked 1 % of the national budget for development financial institutions to kickstart the sector. following in their footsteps, domestic conglomerates like samsung and daewoo started investing in film financing and video production. korea ’ s experience above illustrates an important lesson for economic development. properly structured development institutions can be a potent agent of change for private sector investment, drive growth, and forge inclusive societies. it can do a lot of good. but in reality, the real challenge is how to replicate the key factors that contribute to the success, and to achieve this more consistently across different political, economic and social contexts. with this in mind, let me outline the crucial factors that might help us understand this phenomena : a. first, a mindset shift to contribute more broadly to catalyse new growth areas ; b. second, the need to strengthen accountability frameworks ; c. third, the continuous cultivation of a strong culture of innovation ; and d. fourth, a robust corporate governance. stepping up to the plate by further developing