Zafrul: Financial Sector To Play a Big Role Post-pandemic

Zafrul: Financial Sector To Play a Big Role  Post-pandemic

Zafrul says Financial Sector Should be a Catalyst for Reforms

Speaking at the MyFintech Week 2022 Finance Minister Tengku Zafrul Aziz says there is a rare opportunity for reforms in the post-pandemic era.

He believes the financial sector could be a catalyst for these reforms, drive sustainability, and contribute to our collective goal of a “Prosperous, Inclusive and Sustainable Malaysia”. 

“Now that our national goals are set and the Blueprint is drawn, it is time to act,” he says at the event where the Financial Sector Blueprint for 2022 to 2026 was launched.

“2022 will not only be a pivotal recovery year for Malaysia, but also a rare opportunity to reform and future-proof ourselves. 

“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,” he says.

In this regard, I urge the financial sector to collaborate with the Government in building back better, he adds.

“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”. 

“On that note, I would like to thank and congratulate Bank Negara Malaysia for hosting and organising MyFintech Week 2022, and for finalising the Financial Sector Blueprint that will shape the industry for the next five years.”

Change-makers

BNM Governor Nor Shamsiah Mohd Yunus (photo above) officiated at the event. 

She says MyFintech Week is an important event for Malaysia’s financial sector. 

“It is here where change-makers from finance, technology, government, business and other disciplines come together to discuss how we can shape the future of finance through technology and innovation,” she told the online audience.

The theme of this year’s conference is “Advancing Digitalisation for Recovery, Sustainability and Inclusion”.

“Over the last two years, we have seen an accelerated pace of digital adoption across government, society and business unmatched in recent history.”

Over the next five days, over a hundred speakers will discuss a broad range of issues ranging from environmental sustainability, the future of money, emerging technologies and the financial health of consumers. 

She says the pandemic has highlighted and deepened long-standing vulnerabilities in Malaysia and many places around the world. 

These include the fragile state of social protection systems, under-investments in health and infrastructure, and the need to improve our education system. 

Bouncing Back

“As a result, vulnerable groups bore much of the economic, social and health cost of the pandemic and they continue to be at risk. 

“This will affect economic and social resilience and thus not only our prospects to recover and bounce back from the pandemic, but also to deal with other existential challenges further ahead, like those in the environment and climate.”

But she says there is also the bright side where the pandemic has demonstrated the power and potential of finance to address the pressing problems of our time. The financial system has been resilient, with the ability to provide critical support to households and businesses during the difficult times. 

Digital financial services like electronic payments have made it easy for people and businesses to continue making transactions in a low touch setting, with even greater ease. 

The financial sector has also stepped up to provide various forms of relief to customers over the last two years, such as by giving borrowers breathing space and helping them get back on their feet while ensuring that depositors’ interests are not jeopardised. All this was made possible on account of efforts in recent decades to develop and strengthen the financial system. 

She also believes the financial sector will continue to have a central role in providing solutions to the challenges ahead – be it in bringing about an orderly transition to a greener economy, or helping households and businesses become more resilient to financial shocks in an increasingly dynamic and fast-changing economic environment. 

Five Priorities

“We have identified five priorities that will anchor our efforts – working together with the government, industry, business and social enterprises and other stakeholders – to promote a financial system that will secure long term growth, planetary health and shared prosperity,” says the governor.

The five priorities are: 

  1. First, funding Malaysia’s economic transformation; 
  2. Second, elevating the financial well-being of households and businesses;  
  3. Third, advancing digitalisation of the financial sector; 
  4. Fourth, positioning the financial system to facilitate and orderly transition to a greener economy; 
  5. And fifth, advancing value-based finance through thought leadership in Islamic finance.