benjamin e diokno : the philippine economy - sustaining resilience amid uncertainties speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), to the economic journalists ’ association of the philippines, manila, 27 august 2019. * * * good morning, ladies and gentlemen. first, let me thank the economic journalists ’ association of the philippines for inviting me to share the bangko sentral ng pilipinas ’ view on the current and future state of the philippine economy. as we are all aware, the specter of slowing global economic growth looms larger than ever on the horizon as protectionist policies and geopolitical tensions continue to dominate the global growth narrative. greater global economic uncertainty may lead to higher risk aversion as international investors turn to safe - haven assets, resulting in volatility in our domestic financial markets. when this happens, this could have adverse consequences on our price and financial stability objectives, and ultimately on the country ’ s growth momentum. nevertheless, in this presentation, i will show you how the bsp, with our purposeful and meaningful structural reforms, can help support against the impact of these external risk factors. risk factors identified last year, such as the escalating trade tensions between major economies and geopolitical factors, have either intensified or materialized this year and contributes to weaker global economic prospects. acknowledging the impact of these on world trade and investment, the imf have several times downgraded its 2019 and 2020 global growth projections this year. moreover, the imf continues to view the balance of risks to the global outlook as being on the downside, with further escalation of trade tensions. in response, central banks around the world, including the philippines, have responded by easing their respective policy rates to stimulate their domestic economies. in fact, some central banks have surprised the markets by reducing their rates by more than what was expected. this indicates that the global monetary policy easing cycle could gather momentum and last longer and deeper than previously anticipated. despite all this, we remain optimistic about the prospects of the philippine economy. as i emphasized earlier, we are well - positioned to deal with these challenges. we now have an encouraging mix of a manageable inflation environment alongside steady economic growth, which affords policymakers sufficient space to respond appropriately to evolving domestic and global conditions. overall liquidity and credit conditions remain supportive of the country ’ s growth requirements. we

commonplace. for malaysia, the stakes are high. it is estimated that 20 % of malaysia's gdp and 23 % of the workforce are associated with hard - to - abate sectors of our economy. based on the national energy transition roadmap ( netr ), the carbon border adjustment mechanism ( cbam ) introduced by the eu has the potential to impact as much as 57 % of malaysia's total exports to the eu by 2026. 60 % of smes claim that they are looking to increase business opportunities and create long - term value by strengthening esg practices, and will need help to do so. malaysia faces sizable gdp losses from flood damages materialising within the present decade without adaptation measures and investments to build supply chain resiliency. this is backed by findings from a recently published joint research project undertaken by bank negara malaysia and the world bank. this underscores the urgency for smes to transition. adopting sustainable practices would strengthen smes resilience to climate risks, as well as facilitate access to affordable financial protection and sustainability - linked financing. conversely, physical and transition risks if not well managed could lead to significant disruptions in business activity, property damage and a potentially irreversible erosion in economic value. 3 / 5 bis - central bankers'speeches through the joint committee on climate change ( jc3 ) which bank negara co - chairs with the securities commission, significant efforts are being made to support transition efforts by smes. the greening value chain ( gvc ) programme with bursa malaysia has enabled more than 330 participating smes operating within the supply chains of large corporates to start measuring and reporting their ghg emissions, through a combination of capacitybuilding, technology adoption, as well as financing support. a dedicated sme focus group ( sfg ) has now been established under jc3 to provide a more targeted focus and strategy with the aim of accelerating the transition and adoption of sustainable practices and business models by smes. the jc3 sfg has delivered several key initiatives to help smes get started on and advance their transition journey. this includes the esg jumpstart portal, a one - stop online information hub for smes to access foundational information, resources, tools and guidance to jump - start their sustainable journey. bnm has also made available a rm1 billion low carbon transition facility ( lctf ) facility established on a matching basis with participating financial institutions to help smes embrace sustainable and low carbon practices in their business operations