Ensure Benefits of Development in Asia is Shared - Central Bank Governor

KUALA LUMPUR, June 23 (Bernama) -- The transformative momentum of the Asian region will not be completed without ensuring that the benefits of development are widely shared, says Malaysia Central Bank Governor, Dr Zeti Akhtar Aziz. She said experience has shown, even in the advanced economies, that when inequality is high and a significant proportion of population is excluded from the opportunity to participate meaningfully in income and wealth generation, instability follows. "To ensure that rapid economic growth and transformation in the region does not further widen the social divide and disenfranchise those who remain excluded from its benefits, access to high-quality healthcare, social security and financial inclusion is now an important focus of the region," she added. Zeti was delivering the keynote address, "Asia in the World: Sustaining the Region’s Transformative Momentum", at the Wharton Global Alumni Forum in Jakarta, Indonesia on Friday. The text of her speech was made available here. She said the contour of the global economy is fundamentally changing amidst mounting challenges and continued uncertainties, which has made Asia an important source of stability. "While the region is affected by the ongoing economic and financial crisis originating from Europe and the United States, the Asian region continues to remain on a growth trajectory, although at a more modest level," she added. She said greater regional cohesiveness and cooperation, however, has enhanced Asia’s potential to address these new challenges that are confronting the region. "The success of the region is not only in the interest of the Asian economies, but the world," Zeti added. She also said the rapid integration of Islamic finance into the international financial system is a growing feature in the financial landscape of Asia. "Developments in several emerging economies in Asia have seen the rapid expansion of Islamic finance. Global Islamic financial assets are now estimated to be more than US$1 trillion. "While more than 60 per cent of the world’s Muslim population is in Asia, the interest in Islamic finance transcends beyond this community," she added. She said the inherent principle of Islamic finance, which requires financial transactions to be accompanied by underlying economic activity, ensures the close link between the expansion in financial assets with the real economy. "It also increases its potential in fostering sustainable growth. This has positioned Islamic finance to be well-anchored to serve the real economy, and enhances its potential as a sustainable and stable form of financial intermediation," Zeti added. -- BERNAMA