Malaysia already has in place high quality physical infrastructure but considerably more is needed. Steps already being taken include the development of an efficient urban public transportation system, reliable and seamless broadband connectivity and energy efficiency-related infrastructure. This also needs to be reinforced by the  2  BIS Review 146/2010  transformation of the Government machinery to support the transition to a high value added economy. The final and fifth factor is the ability to effectively participate in the economic and financial integration with other emerging economies in particular with that of the region. Asia, in particular, offers immense opportunities for increased participation by Malaysia. Indeed, there is already rising investment into the region by Malaysian companies and this trend can be expected to continue over the medium term. This is particularly pronounced in the financial sector, where Malaysia’s domestic financial institutions are now increasingly having a greater presence in the region. Of importance, is that such ventures yield mutual benefit. There must also be value added to the countries concerned so as to ensure the sustainability of such ventures. II. Financial stability and potential risks in the financial system  Let me now turn to the financial system and financial stability. The Malaysian financial system has continued to perform well throughout 2010, with a high degree of resilience and stability even under the more challenging conditions. The capital positions of both the banking and the insurance sectors have remained stable, well above the regulatory requirements.
4 Alternative Reference Rates Committee, Second Report, March 2018. 5 Financial Conduct Authority, FCA Statement on LIBOR Panels, November 24, 2017. 6 4/5  BIS central bankers' speeches  6 Andrew Bailey, LIBOR: Preparing for the End. Speech at Securities Industry and Financial Market Association  LIBOR Transition Briefing, July 15, 2019. 7 Alternative Reference Rate Committee, The ARRC Selects a Broad Repo Rate as its Preferred Alternative  Reference Rate, June 22, 2017. 8 International Organization of Securities Commissions, Principles for Financial Benchmarks, Final Report, July  2013. 9 International Swaps and Derivatives Association, Interbank Offered Rate (IBOR) Fallbacks for 2006 ISDA  Definitions, May 16, 2019. 10 See the letter from the OSSG to the ISDA dated March 12, 2019. 11 See Alternative Reference Rate Committee, Fallback Contract Language. 12 See Margin and Capital Requirements for Covered Swap Entities. 13 See FASB Proposes Guidance to Assist in Transition Away from Interbank Offered Rates to New Reference  Rates, Financial Accounting Standards Board news release, September 5, 2019. 14 U.S. Securities and Exchange Commission, Staff Statement on LIBOR Transition, July 12, 2019. 15 Financial Stability Board, Overnight Risk-Free Rates: A User’s Guide, June 4, 2019. 16 Alternative Reference Rates Committee, Practical Implementation Checklist for SOFR Adoption, September  2019. 5/5  BIS central bankers' speeches