, trust has been the bedrock of the insurance industry. in the early days, insurance was a simple promise – a hand - written policy, a firm handshake and a nod of trust. while we have long moved away from informal promises to formal policies, the essence remains unchanged. insurance is, at its core, a business of delivering promises. the industry must therefore continue to uphold that promise, as the trust we nurtured will lay the foundation for growth in the future. as we look ahead, the future for malaysia's life insurance industry is promising, filled with new opportunities to serve and protect. but this future won't come without its challenges. from the rapid technological shifts and emerging risks to rising consumer expectations, there's much to navigate. liam and the industry members must therefore take a whole - of - nation approach, embracing collaboration with ecosystem stakeholders and the government to ensure that we are in a strong position to meet these challenges. within the region, there is also a unique role and potential for liam. as asean economies become more integrated, liam and member companies can also contribute in aligning industry standards and practices, strengthening the industry's underwriting capacity, as well as supporting broader talent development initiatives alongside the asian insurance institute. this will help bolster the industry's capacity to develop innovative products and meet the larger protection needs of the region. against these emerging developments, bnm will review the life insurance and family takaful framework, which was introduced back in 2016, to further facilitate the growth of life insurance and family takaful in the years to come. we thus welcome inputs from the industry as we chart the next stage of development. in closing, i would like to extend my sincere gratitude to liam for its partnership and leadership over the years. your unwavering support, collaborative spirit, and dedication are much appreciated. as we rejoice the progress we have achieved thus far, we also look forward to continuing this journey together. here's to the future of life insurance in malaysia, to the industry leaders and members who drive it forward, and to the people whose lives are made better by it. congratulations to liam for 50 years of dedication to advancing the life insurance industry in malaysia! 4 / 5 bis - central bankers'speeches 1 world bank ( 2020 ), a silver lining : productive and inclusive aging for malaysia. 2 codeblue ( 2024 ), over two million adults in malaysia live with three ncds : nhms 202

during the expansionary phase since 2004, the rapid growth in housing and consumer credit was flagged as a concern and as a temporary counter cyclical measure, the risk weight applicable to these loans was increased by 25 basis points in october 2004. second, in the context of continuing high credit growth, the limitations of the prudential framework in capturing the ex - ante risks of procyclical nature of bank credit were explicitly recognized in october 2005 which triggered an across the board increase in provisioning requirement for standard assets. third, to counter the possibility of an asset bubble in addition to concerns about credit quality led to risk weight on banks ’ exposure to the commercial real estate ( cre ) and capital market being increased from 100 per cent to 125 per cent in july 2005. fourth, given the continued rapid expansion in credit to the commercial real estate sector, the risk weight on exposure to this sector was increased to 150 per cent in may 2006. fifth, the general provisioning requirement on standard advances in specific sectors, i. e., personal loans, loans and advances qualifying as capital market exposures, residential housing loans beyond rs. 20 lakh and commercial real estate loans was increased from 0. 40 per cent to one per cent in april 2006 and further to two per cent on january 31, 2007. reserve management the bis paper notes that large foreign exchange reserves expose central bank balance sheets to significant losses mainly from two sources : losses on holding of reserves due to exchange rate appreciation and carrying costs – the difference between the interest rate cost of funding the reserves and the return on foreign assets is the carrying cost of reserves. the bis central bankers ’ speeches guiding objectives of foreign exchange reserves management in india are similar to those of many central banks in the world – safety, liquidity and returns. in india, given that the domestic interest rates are higher than return on reserves, the carrying cost is positive. this cost has to be traded - off with the benefits associated with higher reserves in terms of confidence it provides to the market and serving as key ammunition to face crisis. the exchange rate movement of major currencies is exogenously given to any reserve manager. the reserve manager has to devise strategies so as to minimise the losses or gain from the movement in exchange rate. the foreign currency assets are invested in multi - currency, multi - asset portfolios as per the existing norms which are similar to the best international practices followed in this regard. the broad strategy for reserve management including currency composition