This is well exemplified by the recent emphasis on the need for regular stress testing to understand the effects of shocks on the solvency of individual banks, the stability of the entire financial system, the broader economy and, more importantly, the feedback effects. The roles of granular statistics and sound stress testing methodologies have become vital. While the recent global financial crisis has necessitated a substantial policy focus to address short-term challenges, policymakers also need to keep sight of the economy’s long-term vision. Continuous structural reforms are needed to strengthen fundamentals and improve economic resilience. This involves measures to remove structural bottlenecks, improve productivity and promote innovation and enhance competitiveness. Formulating such structural policies to improve growth prospects hinges on rigorous empirical research in these areas. For Malaysia, the economy is currently undergoing a transition towards becoming a higher value added economy. This has involved setting clear, time-bound and measurable targets, to allow for the policy approach to be focused. This has depended heavily on the availability of good data and statistics that capture developments across all sectors. It also enables us for the monitoring of the progress and the effectiveness of the policies. It is also now widely recognised that economic growth can only be sustainable if it is inclusive. Growth will only slow as income disparities widen. It is also recognised that financial inclusion is an important contributor towards achieving such a more inclusive economic development.
The global economic and financial landscape is currently at an important turning point, as we transition to a fundamentally changed future. The challenges facing us in this environment are manifold. We therefore want to have the skills for this future – to be well equipped to effectively manage our future. Sasana Kijang aims to provide such a platform to pursue this human capital development agenda to become a centre of excellence for learning with the state of the art facilities. Sasana Kijang also reflects our commitment for regional and international collaboration and cooperation. It is our intention for Sasana Kijang to provide a platform for the meeting of minds and to harness the wealth of expertise in the field of Central Banking and finance. As a centre for collaboration, Sasana Kijang has wide ranging facilities for regional and international meetings, seminars and conferences. These facilities are also shared with the South East Asian Central Banks (SEACEN) Research and Training Centre and the Islamic Financial Services Board (IFSB) which are now located in Sasana Kijang. For the SEACEN Centre, it is hoped that all the available facilities will support its enhanced role in the region, particularly, as financial and economic integration in Asia intensifies. For the IFSB, an international organisation that was established as a result of the collaborative efforts of regulators from different parts of the world, it is hoped that it will facilitate further collaboration in the development of Islamic finance and in safeguarding its soundness and stability.