economic growth rate is on a declining trend. aside from the high - growth era when the average annual rate of economic growth was slightly below 10 percent, in the 1980s the average annual growth rate was around 4. 5 percent, which exceeded the growth rates of other advanced economies. however, following the collapse of the bubble, japan ’ s annual growth rate declined significantly to around 1. 5 percent in the 1990s. it has then increased somewhat since the turn of the millennium, but the trend decline in the growth rate continues. in this situation, people will have lower expectations concerning future income growth and their spending and investment will be restrained, which will in turn lead to price declines. the deflation in japan should be understood as a manifestation of the fundamental problem facing the economy, namely the decline in growth expectations. even though japan ’ s economic growth rate is trending downward, the gdp growth rate per worker, or, in other words, the productivity growth rate, has been 1. 6 percent per year on average over the past decade. the rate has declined from earlier levels but exceeds the 0. 8 percent level in european countries and is still comparable to the 1. 8 percent level in the united states. at present, the percentage of the population aged 15 or older that is in employment, that is, the employment rate, is about 60 percent. if this rate declines further with the aging of the population, raising productivity will become an even more critical challenge. in attempting to raise productivity, it is important to recognize that, given the fierce global competition, doing so by cost reduction and improvement in cost structure alone has its own limits for the economy as a whole. for example, about 90 percent of the cpi inflation differential between japan and the united states in the past 10 years was attributable to the difference in the rate of decline in service prices. this appears to reflect the fact that, in japan, nominal wages have been adjusted flexibly. of course, cost reduction should be an important part of firms ’ strategies to enhance competitiveness, and japanese firms have achieved productivity rises through their drastic efforts to cut costs. however, in a situation where the population is declining and existing domestic markets are starting to shrink, it is essential to create new markets that can enable firms to enjoy high profits, in order to raise the productivity of japan ’ s economy as a whole. on this point, one view is that exploring new areas and creating new added value should be part of firms ’ growth strategies.

consumers navigate and compare financial products more efficiently, we are looking into the establishment of an online product aggregator to provide financial consumers with the ability to gather reliable information on a wide range of insurance products and make comparisons on simple products on a single website. a number of issues will need to be addressed to support such an initiative and ensure that meaningful comparisons can be achieved. over the coming months we will be meeting with stakeholders to obtain further views on our aggregator proposals and examine options to move this initiative forward. i have spoken at length this morning about our plans for the industry. in the years ahead, this industry will have an important strategic role in the ongoing transformation agenda that is being pursued for the insurance and takaful sectors. the bank is committed to providing a well - balanced regulatory environment that adequately protects consumers, while encouraging advisers to realise their full potential. we will continue to set a high bar on professional integrity and quality of advice, and we welcome your ideas and input on how we can continue to encourage firms to grow within the industry and bring financial advisory services to a wider spectrum of the public. the association of financial advisers has a very important role in this process and has been a focal point for the bank ’ s engagements with the industry. i look forward to your continued cooperation in achieving our shared goal of developing a financial advisory industry in malaysia that truly serves to improve the well - being of financial consumers in this more challenging environment, and one that we can all be proud of. thank you very much for your attention. bis central bankers ’ speeches