The Bank Negara Malaysia has released a five-year financial sector blueprint that lays out five key priorities in the financial sector. These include funding the country’s economic transformation, elevating financial well-being, advancing digitalisation and positioning the financial system for an orderly transition to a green economy. These priorities are aligned with Malaysia’s long-term focus on sustainable economic growth and a thriving society.
The plan is aimed at increasing participation in digital transactions and a digital culture. The country is on its way to becoming a fully digital economy, and the move to e-payments is set to save the country an estimated 1% in costs every year. In addition to digitalisation, the Government plans to improve the financial infrastructure by focusing on empowering the public sector and nurturing digital talent.
The plan also calls on the financial sector to keep up the inclusivity agenda. This will be especially important as the financial sector plays a key role in the nation’s economy. In the midst of the Covid-19 pandemic, inclusion, and effective intermediation will become more vital than ever. The Financial Sector Blueprint will guide Malaysia’s progress in all these areas and complement the Twelfth Malaysia Plan.
The country has made significant strides towards the development of Islamic finance and has been a pioneer in this area in the region. This has been achieved through the concerted efforts of the government, financial regulators, and industry players. As a result, Malaysia is now one of the global leaders in Islamic finance.
The financial sector is the cornerstone of Malaysia’s economic development. The country has made great progress in adopting comprehensive reforms, including the National Innovation Agenda (NIA) policy in 2021. These policies will help Malaysia attract more quality investments and drive long-term growth. They will also help Malaysia attract foreign capital.
Malaysia’s financial sector has a vital role to play in addressing environmental challenges, including the need to transition to a low-carbon economy. This includes supporting initiatives to reduce the nation’s carbon footprint and improve climate resilience. As the nation’s economy becomes more sustainable, the financial sector must embrace these initiatives to ensure that it continues to remain competitive.
The financial sector of Malaysia is regulated by the Bank Negara Malaysia, which is the central bank in the country. The report examines the role of the central bank in the country’s financial system, the challenges and risks it faces, as well as the structure of the financial market. The document also outlines the various developmental initiatives the central bank has taken in the banking industry.