For example, the lack of underwriting expertise is a major reason why we have yet to stem the outflow of insurance for large and specialised risks. Over the last five years, the amount of direct and reinsurance premiums ceded overseas for the Marine, Aviation & Transit (MAT) and Energy risks amounted to over RM5 billion, with the retention ratio for these classes  BIS central bankers’ speeches  1  remaining below 30% for the last 10 years. With our world-class oil and gas industry and one of the largest airline fleets in the region, having the requisite insurance underwriting expertise in these sectors is not only a logical business extension for the industry; it is also an important economic imperative for the country. With more than 200 actuarial science graduates coming into the market annually, a healthy talent pipeline exists to support a whole range of functions from pricing to risk management and financial reporting. To leverage this resource, more needs to be done by the industry. In a recent survey of 20,000 graduates in Malaysia, the insurance and takaful sector lags other financial institutions in attractiveness, with only three positions among the top 100 employers in Malaysia, compared with the banking sector which has 16 names. The industry, collectively, ought to do better than this. We cannot be complacent when it comes to talent development. The hunt for talent is a continuous affair. Therefore, a strategic focus and investments to attract, retain and develop this talent must be prioritised.
Demand from the U.S. used to be the key driver for global oil prices. This is no longer the case. Research has shown that the Asia-Oceania region is now the world’s leading consumer of petroleum and other liquid fuels11. Recognising this, CSRC Vice Chairman Fang Xinghai accurately reflected in May 2016 that China is now “facing a chance of a lifetime to become a global pricing centre for commodities”12. 9 The emerging trend highlights that Shanghai and Singapore are facing an important crossroad ahead. As international financial centres in Asia, we can strategically position ourselves to play key roles in shaping the new Asian financial landscape. Both cities are the gateways to two of the most important economic regions in Asia – China and ASEAN:  The China story is a familiar and also fascinating one. By 2050, China could account for one-third of the world’s economy. China’s banking system could grow to become the largest in the world within 4 years by 20205. Today, global financial institutions are paying close attention to China’s increasing importance in global markets. As China’s financial markets progressively liberalise, their global influence will likely extend further. For a start, China’s 10 trillion stock market and 9 trillion interbank bond market, and this is in USD, will likely be included into global stock and bond indices over the next two years. Re-balancing of portfolios by global investors will lead to an upsurge of financial flows into China, enhancing the internationalisation of China’s financial markets.