The greater degree of economic flexibility in the region in responding  BIS Review 11/2006  1  to shocks and the dynamic global conditions is a further feature that contributes towards strengthening the region's potential. While private consumption's contribution to domestic demand is becoming increasingly more significant in the region a renewed expansion in investment is also needed to create a more sustainable growth path. Significant initiatives are already underway to increase the contribution of private investment and secure new areas of growth. These include improving the investment climate and reducing the cost of doing business. Efforts would also continue to be on-going on the priorities in the region as countries have the potential to further expand the role of domestic demand. For several of the countries in the region, a significant boost to investment is expected to stem from an expansion in physical and social infrastructure as well as from research and development activities being relocated to Asia. On the financial front, the region's high savings rate and the pool of capital in the region for productive investments would be able to provide a boost to development of the region's financial markets. Strengthening the structure of the regional markets would facilitate the surplus savings to financing investment within the region. Significant progress has already been made in the Asian region in strengthening the financial sectors, in the banking system or the capital markets. This has increased the region's capacity to intermediate funds, especially within the region.
As a result of both supportive external and domestic demand, the economy is expected to register improved performance in 2006. For Malaysia, the focus of policy thrusts in 2006 would be to build on the gains of 2005, ensuring fundamentals are strengthened and the flexibility of the economy is further enhanced. In this respect, the Central Bank will determine the interest rate policy to provide a sound environment for sustainable performance of the economy. Macroeconomic policy would thus continue to stress growth in an environment of price stability. Of importance, is to strengthen private sector-led growth. Further efforts will therefore be undertaken to ensure that the economic and financial structures and systems are conducive for the building of a dynamic, resilient and flexible economy. The dynamics of growth and development in the region are reshaping our environment. Effective chief executives and corporate leaders in this new environment need to develop accordingly taking into account the new requirements. In its programs, ICLIF has focused on these new dimensions of leadership development, particularly for the financial services sector. As a leadership development institution, ICLIF has also evolved over time by continuously reviewing the contents of its programs to match the needs of the rapidly changing environment. A review of the Global Leadership Development Program (GLDP) has now been undertaken, based on the valuable suggestions and feedback from participants, faculty, facilitators and expert panel.