KUALA LUMPUR (Jan 24): Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has called on the financial sector to collaborate with the government to build back the economy into a better position while launching Bank Negara Malaysia’s (BNM) virtual MyFintech Week 2022 conference and the Financial Sector Blueprint 2022-2026 (FSB) on Monday (Jan 24).

The FSB is a five-year blueprint for 2022 to 2026, which sets out the central bank’s development priorities for the financial sector over the next five years, anchored on efforts to foster market dynamism and support sustainable development objectives, with a continued focus on its monetary and financial stability mandates.

The finance minister said that the FSB, which is complementary to the 12th Malaysia Plan, is expected to produce outcomes which include advancing digitalisation of the financial sector, providing meaningful choices and access for consumers, increasing the vibrancy of the funding ecosystem to meet Malaysia’s economic needs, and wider adoption of green finance and sustainability practices.

“I also look forward to the upcoming entry of digital banks, digital insurers and takaful operators. Their impact on the development of the nation through the use of technology and introduction of innovative financial solutions will improve the well-being of Malaysians, foster greater efficiency and contribute towards a more competitive financial landscape,” Tengku Zafrul said. 

He added that 2022 will not only be a pivotal recovery year for Malaysia, but also a rare opportunity to reform and future-proof the nation. 

“The road ahead will require nothing less than a whole-of-nation approach involving the government, regulators, the private sector, civil society organisations and, yes, the financial community.

"In this regard, I urge the financial sector to collaborate with the government in building back better. As in the past, I am confident that the financial sector will rise to the occasion and be a catalyst for reform, drive sustainability and contribute to our collective goal of a prosperous, inclusive and sustainable Malaysia,” he concluded.

Also at the MyFintech Week 2022 event on Monday, BNM governor Tan Sri Nor Shamsiah Mohd Yunus highlighted that the severe global health and economic crisis faced by the world over the last two years demonstrated the power and potential of the financial sector to address the pressing problems of our times.

She added that the financial sector was able to rise against the challenges brought on by the pandemic on account of efforts in recent decades to develop and strengthen the financial system.

“With the benefit of two decades of development of the financial sector behind us, we are building on strong foundations as we look to the future. This means that we believe the financial industry is well positioned to play a stronger role in leading transformation and changes at the industry level."

The BNM governor added that the central bank is committed to fostering conditions for greater market dynamism to respond to changing needs of the economy and society while calling for more and diverse actors in the financial system who operate within well-defined parameters that encourage healthy competition and innovation, alongside prudent and responsible conduct.

“We continue to be firmly anchored on BNM’s monetary and financial stability mandates. As we have always emphasised, sustainable economic growth can only happen within a context where monetary and financial stability is preserved, and where the integrity of the financial system is safeguarded,” Nor Shamsiah concluded.

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