It goes without saying, however, that as a result of the rapid development of technology, especially in the ICT area, which drastically lowered the cost of the said exchange, the international integration of trade, investment, financial and other services is now more advanced than it has ever been before. The Economic Policy Committee of the European Union 3 points out four factors that have lead to the rapid development of globalisation over the past years: •  multilateral trade liberalisation; the average customs duty has been lowered by ca. 30%  •  successful economic reforms in many developing countries, especially in China and India  •  the technological advancement, especially in the ICT sector and transportation, which has significantly lowered the cost of trade. To give you and example, fees for sea, land and air transportation, telephone calls and satellite calls went down by 21%, 30%, 95% and 88%, respectively. •  the technological advancement has blurred the borderline between what can and what cannot become subject to international trade. Globalisation may create new macroeconomic interdependences to replace the traditional ones that we know from the books on economics. The majority of economists, politicians and investors may still not quite keep at pace with the “seismic changes” that take place in the economy 4 . However, if we really are witnesses to “seismic changes” in the economy, it may be worthwhile to have a closer look and think about their meaning. Globalisation and its impact on the economy may be viewed from different perspectives.
Role of the financial system in supporting green technology The financial system has played an important role over the last few decades, in facilitating the economic transformation and growth of the real economy, by channelling investments into productive sectors. This role has been significantly fortified by a strong and well-capitalised financial system in Malaysia, that has been built through comprehensive reforms undertaken over the last decade. Our financial system today is characterised by solid financials, and strengthened risk management and governance practices. Combined with ample liquidity and improved credit infrastructures, the financial system is well-positioned to support new areas of growth that are viable and promising, including those in the green technology sector. To meet the needs of the green technology sector, I would like to highlight two points that might reduce the information asymmetry between financial institutions and businesses, a pre-requisite for building a sustainable financing ecosystem for this sector. Firstly, financial institutions must have the capacity and capabilities, to assess the viability of projects despite the complex, diverse and rapidly-changing nature of green technology. Secondly, green businesses need continuing advisory support as they may be technically strong, but lack the capabilities to develop comprehensive business plans and cash flow projections, needed to demonstrate that a project is viable to financiers.