In Malaysia, the commitment to the financial inclusion agenda is legislated under the new Central Bank of Malaysia Act 2009 which provides as one of our primary functions – to promote the development of a sound, progressive and inclusive financial system. Malaysia’s financial inclusion agenda has been developed in concert with the development of the overall financial sector and encompasses the five broad strategies. Our blueprint for the development of the financial sector for the next decade will give special focus on financial inclusion and consumer protection. In the previous decade, the focus was  2  BIS central bankers’ speeches  to enhance the access to financing, financial education and putting in place the supporting institutional arrangements to enhance financial inclusion. While these efforts will be intensified further in this next decade, greater leverage will be made on technology and on new institutional arrangements to extend the outreach to the range of users from households to micro enterprises and small and medium scale enterprises. Also important is the development of the enabling environment conducive for innovation of the range of financial products and services needed for the spectrum of society and businesses and for cost effective pricing to take place. This will be reinforce by the supporting infrastructure for the effective management of risks by financial institutions; strengthening of the development financial institutions; and putting in place a comprehensive consumer protection, redress and education framework. These strategies are pursued under a collaborative approach that effectively combines with the efforts by the private sector.
Our central view remains that inflation will fall back this year as the rises in domestic gas and electricity prices last year drop out of the annual comparison, and the recent cuts in prices feed through to household bills. But it is important to look through those temporary effects to the outlook further ahead. The discussion within the Monetary Policy Committee is explained in the minutes of our June meeting which were published this morning. As ever, there is room for differences of judgement as to the appropriate level of Bank Rate – as shown by the differing views within the MPC. But every member of the Committee is determined to bring inflation back to target and keep it there – or as close to the target as possible – indefinitely. In the long run, it is of the utmost importance that the right institutions to secure both monetary and financial stability are in place. I believe they are. Chancellor, you are now moving on. Our country continues to benefit from the institutional arrangements you introduced in 1997. As that great political commentator Niccolo Machiavelli noted, “nothing brings a man greater honour than the new laws and new institutions he establishes”. I encourage you to be equally bold in your next job. Institutions outlast us all. Over time, they are adapted as we learn the lessons of the past in the light of a changing present to meet our future needs.