NEW FINANCIAL SECTOR BLUEPRINT TO REALISE MALAYSIA'S ECONOMIC TRANSFORMATION

KUALA LUMPUR, March 24 (Bernama) -- The new blueprint being drawn up for the
financial sector, will help realise Malaysia's vision of becoming a
developed economy by 2020.

Bank Negara in its Financial Stability and Payment Systems Report 2009 said
the blueprint would enhance the role of the sector as a driver of economic
growth, thus contributing effectively to the nation's economic transformation
process.

Bank Negara Malaysia or BNM is the Malaysian central bank. Its headquarters
is located in Kuala Lumpur, is establish to issue currency, act as banker and
adviser to the
Government and regulate the country's credit situation.

"To realise the nation's vision of becoming a high-income economy, the
financial sector has an important role towards supporting this transition.

"The blueprint will also be an enabler, driver and catalyst of economic
growth, with an enhanced capacity to contribute positively to the economic
transformation process," said the central bank.

According to Bank Negara, the blueprint is expected to make the industry
more competitive, dynamic and inclusive, while providing comprehensive and
quality services to all segments of society.

It will also position Malaysia's financial sector to adapt and leverage on
the relevant forces of change, including the changing demography,
characteristics and financial requirements of Malaysian households and
businesses as well as the regulatory landscape.

Other changes include greater economic and financial integration and
the latest advancements in information and communication technology.

The report also highlighted that, although the recovery of the global
economy is progressing, the external environment is expected to remain
uncertain.

The reforms and stabilisation measures put in place since 2009 would
however, enable the financial sector to remain resilient, it noted.

To strengthen further the financial industry, a review is currently being
undertaken on existing legislation, governing financial institutions and
intermediaries.

"While, the new Central Bank of Malaysia Act 2009 reinforces the bank's
mandate on preserving monetary and financial stability, the proposed enhanced
legislation will provide further clarity to its powers.

"It also supports a differentiated regulatory and supervisory regime that
best achieves the mandate given to the bank, including promoting a sound,
progressive and inclusive financial sector," it explained.

The review will also reinforce the emphasis placed on effective board
oversight and strong governance structures along with processes, as greater
flexibility is accorded to players that are well-managed.

-- BERNAMA



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