I would therefore like to clarify that under a flexible exchange rate regime, movements in the ringgit exchange rate reflects both external and domestic factors, including the strength of the domestic economy and the flow of foreign capital in the financial market. Our economy remains resilient with a respectable growth performance within the range of 4 – 5%, relative to the performance of regional and emerging market countries. The ringgit depreciation is not a unique and isolated event. It is a global phenomenon. The strong appreciation of the US dollar has led to similar depreciation pressures in all global and regional currencies. This is due to several factors including the uncertainties surrounding monetary policy in the US as well as global economic and political developments. These global developments have affected sentiments in global financial markets that led to capital outflows from emerging markets. The currencies of many countries have underperformed and the ringgit was also not spared. The ringgit was affected given the structure of our economy and financial market that is one of the most open among emerging market countries. Our market was exposed to global financial market uncertainties that led to the reversal of portfolio investments. There were also other specific factors that affected the ringgit. First, some investors had taken advantage amid the market turmoil and uncertainty to gain profit through speculative activities in the offshore ringgit non-deliverable forward (NDF) market.
Based on a survey that was conducted, consumer satisfaction towards financial services increased significantly from 61% in 2011 to 73% in 2015. We will continue to invest efforts towards improving the performances in this area. With loans amounting to RM1.5 trillion as at end-November 2016, the banking industry is the main source of funds to households and businesses, including small and medium enterprises (SMEs). Recognising the pivotal role of the banking sector in our economy, Bank Negara Malaysia will continue to develop the financial sector in a progressive and inclusive manner to ensure that all segments of society can benefit from this financing ecosystem. Financial knowledge among businesses and individuals must be continuously improved While results are promising, our efforts in achieving financial inclusion need to be further intensified. There remain gaps in access to financing for certain segments of society, which require collective efforts from all. The Bank is receptive towards these needs and remain committed to assist the public at all times. Among the issues raised by businesses are the difficulties in obtaining funding to start a business, particularly for SMEs and new companies. The factors cited for this include the absence of collateral, or insufficient track record, especially for businesses involved in new growth areas.