Key priorities moving forward

  • Business
  • Thursday, 24 Mar 2011

THE successful outcomes achieved over the years in financial sector development have largely been attributed to the comprehensive approach taken to develop the financial sector.

Most segments of society today have broad access to financial services at reasonable cost. Moving forward, in order to support Malaysia's transition to a developed nation, the role of the financial sector will need to evolve further.

Towards this end, the bank is at the advanced stages of finalising a financial sector blueprint, which aims to enhance the capacity and capability of the Malaysian financial sector to best serve Malaysia's needs as a high value-added and high-income economy by 2020.

It is envisioned that the structure of the Malaysian financial system will evolve to become more diverse in terms of institutions and arrangements to support an effective and efficient financial intermediation function in the new economy, with improved productivity, responsible innovation and greater support for the formation of businesses.

The transformation of the financial sector will be accelerated by the continued process of financial integration and increased connectivity within the region, continued gradual and sequenced liberalisation of the financial sector, integration of payment and settlement systems, and greater cross-border cooperation in maintaining regional financial stability.

This will be achieved with a continued focus on financial inclusion and a strengthened surveillance, consumer protection and prudential regulatory framework which will provide the core foundations for sustainable growth with financial stability.

In the area of Islamic finance, Malaysia's position as the global hub for Islamic finance will continue to be reinforced, supported by a diverse set of institutions, deep, liquid and efficient financial markets, vibrant ancillary and support services including consultancy and advisory services as well as a highly competent and skilled talent pool.

This will also contribute to and complement identified strategies to promote the more efficient mobilisation of funds through the financial markets.

Efforts will also be enhanced to deepen Malaysia's inter-linkages with international economies. It is envisaged that as Malaysia becomes more integrated with the regional economies, cross-border cooperation in areas of financial sector development, financial regulation and supervision, and crisis management and resolution will become increasingly important.

For Bank Negara statements click here

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