And if adjusted for the cost of living the purchasing power parity (PPP) adjusted GDP doubled over the period to $ The sustainability of the economic growth momentum has been derived from the diversified economic structure that has evolved, as the flexibility of the economy has yielded the continuous ability to shift to new areas of comparative advantage. It is this diversification in the economy that has also reduced vulnerability to shocks and increased resilience. Malaysia has also taken advantage of globalisation to strengthen its economic and financial relationships with the major trading blocs in the world. This year we expect our trade value to exceed RM1 trillion for the first time. Foreign direct investment has been sustained, in particular, into the new areas of growth. There has also been an increase in Malaysian corporates and financial institutions venturing abroad. This has strengthened our inter-linkages in the global economy and our integration in the international financial system. Amid the environment of favourable growth and strong fundamentals, Malaysia has taken the opportunity to further deregulate and liberalise the Malaysian financial sector, with a view to enhancing its contribution to efficiency and growth. The sector has also continued to be progressively transformed through rationalisation amongst existing financial institutions and the introduction of new institutions. These developments have contributed to the strengthening of the international dimension in the financial system. This has been particularly the case for the Islamic finance sector.
As a compromise, the legal status of the new central bank was situated somewhere between that of a public and a private sector institution and it was given two head offices, one in Berne and one in Zurich. From the beginning, it thus occupied a special place in Switzerland’s political landscape. This special status has hardly changed over the years. In the 1930s, when devaluations and the abandonment of the gold standard often resulted in tighter government controls over central banks, the National Bank Act remained unchanged. Likewise, at the end of the Second World War, when many central banks were nationalised, the SNB remained a stock company open to private shareholders, and it has maintained this status to this day. Since 1973, following the abolition of fixed exchange rates and the introduction of an autonomous monetary policy, the circumstances under which this principle of independence is implemented have changed progressively. A growing need for transparency vis-à-vis the public and the authorities has emerged. This is why we have developed a strategy of active communication, and our relationship with the federal authorities has been gradually institutionalised. Nowadays, transparency and accountability have become principles of good governance for all independent central banks. In Switzerland, the revised National Bank Act of 2004 obliges the SNB to present an annual accountability report on the execution of its mandate to parliament. Application of rules Independence is not merely a theoretical concept, it must be lived constantly.