Timely implementation of consistent and coordinated policies in a coherent manner is also essential to ensure the realisation of the expected outcome of such policies. In this context, this Road Map intends to set the basis for strong policies and credible frameworks to achieve macroeconomic stability with the support of the government and private sector stakeholders. The outline of the Road Map 2019 is as follows: Section 2: The Central Bank’s monetary policy strategy and policies for 2019 and beyond Section 3: The Central Bank’s policies related to the financial sector performance and stability in 2019 and beyond Section 4: Policies Related to Ancillary and Agency Functions Now, let me elaborate further on these aspects. 11  2. Monetary Policy Strategy and Policies for 2019 and Beyond The Central Bank conducts monetary policy in an increasingly forward looking manner with the aim of maintaining inflation at low and stable levels in the medium term thereby supporting the economy to reach its potential. In 2018, the Central Bank conducted its monetary policy in a challenging environment with rapidly evolving adverse global conditions as well as several upside and downside risks on the domestic front. New developments in the global economy in the wake of rate hikes in the United States and the economic normalisation in most advanced economies have demanded monetary authorities around the world to adjust their monetary policies accordingly.
Besides tackling the various issues, risks and challenges of navigating these uncertain and volatile times, the FMC has been mandated to formulate and propose strategies to take the financial market development forward. I would like to thank the members of the Financial Market Committee and industry association representatives for collaborating with us for the common and greater good of market development. The FMC and its subcommittees have met several times. Some of the initiatives have already been rolled out; such as the extending of trading hours for the FX market and the KL USD/MYR reference rate. Some are going through the woodworks of development. I would like to discuss a few here. 1. We are embarking on a progressive journey of a more liberalized and conducive financial market operating environment. As a concrete step, I would like to announce the introduction of a pilot program for the USD/MYR and CNH/MYR markets. Under this program, residents will be allowed to undertake hedging transaction for USD and CNH against ringgit without the need for sighting of the underlying documents. Subject to a position limit, only a declaration by the customers will be sufficient. Accordingly, cancellation of the hedging will also be freely allowed. 2. To further complement this, the Bank is also currently working with the Securities Commission and Bursa Malaysia to facilitate the introduction of USD and CNH against Ringgit futures for the onshore exchange. Similar to the interbank market, these will, for now, be subjected to position limits, and for now only applicable to residents.