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Thursday, 31 March 2016

MY COUNTRY, MALAYSIA

Composition helps the student to express his views on what is happening in the world around him, besides expressing personal thoughts, feelings and experiences.


Malaysia - Map


My country, Malaysia, is a small independent country. Many races of people live harmoniously together. There are Malays, Chinese, Indians and a sprinkling of foreigners from Europe, America, Japan, Korea and the surrounding South East Asian countries. Malaysians are noted for their friendliness and warm hospitality. Each race carries on with its own way of life. Most of the people in large towns work in banks, offices, government departments and firms. The young attend schools, colleges or universities. Those in the rural areas work in paddy fields, vegetable plots, poultry farms, rubber, coconut and oil palm estates or tin-mines and factories.
Malaysians, being of different races, can be seen on the streets in their various costumes, adding color to the scene. The warm, sunny and wet climate throughout the year makes Malaysia a tropical paradise. Visitors admire the green forested hills, the golden beaches with graceful coconut palms fringing them, the blue sea and, of course, the local cuisine. Foreign tourists find these places ideal for a holiday, as they get away from their cold countries.
Besides, Malaysia's cool hill-resorts like Cameron Highlands, Fraser's Hill and Genting Highlands make the day pleasant and refreshing, away from the hot lowlands.
Lastly, Malaysia is a rich country, famous the world over for its tin, rubber and palm oil exports. Kuala Lumpur, the capital city, is the largest in Malaysia, with many modern buildings. The international airport at Sepang is always busy. I am proud of my country which I love dearly.

Words
Sprinkling - a small number
noted - wide known, famous
paddy field - A paddy field is a flooded parcel of arable land used for growing rice and other semiaquatic crops.




Malaysia is a country in Southeast Asia. It consists of two regions about 650 kilometres apart, which are sepa­rated by the South China Sea. The regions are Peninsu­lar (formerly West) Malaysia, and Sarawak and Sabah (formerly East Malaysia), on the northern part of the is­land of Borneo. Peninsular Malaysia borders on the north with Thailand.
Malaysia is a tropical land, much of which is covered by dense rainforests. It is the world's largest producer of natural rubber and palm oil (vegetable oil from palm tree nuts). Malays and Chinese people make up most of the country's population. Kuala Lumpur is Malaysia's capital and largest city.
The nation of Malaysia was formed in 1963, when Ma­laya, Sarawak, Sabah, and Singapore united. Malaya was an independent nation that occupied what is now Penin­sular Malaysia. Sarawak and Sabah were separate colo­nies of the United Kingdom (UK) that covered what is now the Malaysian region of Sarawak and Sabah. Singa­pore was a UK colony, south of Malaya. Singapore with­drew from Malaysia in 1965.
People
Population and ethnic groups. For Malaysia's total population, see the Malaysia in brief table with this arti­cle. About three-fifths of the people live in rural areas. More than 80 per cent of the people live in Peninsular Malaysia.
Malaysia's largest population groups are, in order of size, the Malays, Chinese, and Indians. Malays make up about 50 per cent of the population, Chinese about 35 per cent, and Indians about 10 per cent. A number of other ethnic groups who live chiefly in Sarawak and Sabah make up the rest of the population. The largest groups in Sarawak and Sabah are the Dyaks and the Ka- dazans (see Dyaks).
Malaysia's ethnic groups speak separate languages or dialects, and, in many areas, have different ways of life and hold different religious beliefs. Malays make up the most powerful group in Malaysian politics, but the Chi­nese control much of the nation's economy. Despite dif­ferences between the major ethnic groups which have led to friction and, sometimes, violence, Malaysia is a model of racial harmony.
Languages. Bahasa Malaysia, the Malay language, is used by the Malay people and Malaysians generally in everyday life. It is the country's official language (see Malay).
Most Chinese speak the Chinese language, and most Indians speak Tamil. Many Malaysians also understand English, which is widely used in business.
Way of life. Peninsular Malaysia includes many crowded cities as well as large rural regions. Sarawak and Sabah has several large towns along the coast and rivers, but the interior is chiefly a rural area.
The majority of the country's Malays live in rural areas on the peninsula. Most of them work as farmers and live in settlements called kampungs. Many houses in rural areas are made of wood. Most have thatched roofs, but some have roofs made of tiles. Some houses are raised above the ground on stilts. Most Malays who live in cit­ies work in industry or in government jobs.
Most of Malaysia's Chinese people live in cities. Large numbers of them work in shops, business offices, and factories. Chinese people own a large proportion of Ma­laysia's businesses. Wealthy and middle-class Chinese live in suburban homes or high-rise blocks of flats in central city areas. In the cities, some low-income Chi­nese as well as Malays and Indians live in crowded, run­down areas.
Large numbers of Malaysia's Indians work on rubber plantations. Many others hold city jobs.
Most people of Sarawak and Sabah live in small set­tlements in rural areas. Several families often live to­gether in long houses along rivers. Many of these fami­lies struggle to produce enough food for their own use.
Clothing. Traditional costumes are not often worn in the towns and cities. The men tend to wear Western shirts and trousers outside their homes, adding ties and coats for official functions. Bushjackets are also worn, mostly by government officials. For casual wear, West­ern styles are preferred, particularly by young people.
Few Chinese women wear the cheongsam, a tradi­tional highcollared, tightly fitting dress with slits at the sides. Older women prefer the more comfortable sam- foo, which consists of a jacket and trousers. Many Indian women like to wear saris. See India (Clothing).
At home, many Malay men still relax in sarongs. A sa­rong is a length of cloth, the two sides of which are sewn together to form a very loose sheath. A man wears it wrapped around his body and secured by a double­fold at the waist. It reaches to his ankles. He may wear a shirt or a singlet with it or he may prefer to go around with a bare chest. In rural areas on hot days, some older women sit around their homes wearing sarongs tied just under their arms. Younger women wear sarongs in this way only when they bathe at the river or well.
Most Malaysian men reserve traditional dress for reli­gious or ceremonial occasions. Many women wear their various traditional costumes very often, and some every day. Quite a number of women experiment with modi­fied versions of dress that embody traditional designs from other local and foreign cultures.
Malay traditional dress for men consists of a baju— a roundnecked or highcollared longsleeved shirt. They also wear seluar (trousers) with a sarong wrapped smartly around the waist and hips, and a black songkok (boat-shaped velvet cap) or a tanjak (elegant cloth head­dress) for special occasions. Some Malay men wear sa­rongs to the mosque, and instead of songkoks they may wear ketayaps (white skull caps) for such occasions. Many men who have been on a pilgrimage to Mecca wear serban haji (pilgrims' turbans). A number of Mus­lim men of all races wear robes and turbans.
For Malay women, the traditional costumes most widely worn are the sarong, the baju kurung, and the baju kebaya. The baju kurung is like the baju for men. It is tied with gathers on one side, and the outfit is com­pleted with a selendang (shawl) or tudung (scarf) around the shoulders or on the head. Some Malay women who have gone on a pilgrimage to Mecca wear special head­dresses similar to those worn by male counterparts.
Food. Multicultural Malaysia has a variety of deli­cious cuisines (styles of cooking). People in the cities can dine at French and Italian restaurants as well as eat­ing local Malay, Chinese, or Indian food.
Chinese cuisine in Malaysia comes from different provinces of China, and is extremely varied. But boiled rice is the basis of the daily diet of most Chinese. See China (Food).
Most Indians like highly spiced food. Rice is the main food of people from south India. Wheat flour is the main food of families from north India. See India (Food).
Malay cooking varies from state to state but the main dish is rice, usually boiled and eaten with vegetables, fish or other seafood, chicken, or meat. Pork is forbid­den by Islam, the religion of most Malays. Chillies, coco­nut milk, onions, spices, and tamarind are frequently used in Malay cooking. Popular dishes from different states include the asam pedas (fish with hot chillies and sourish gravy) ot Johor and the ayam percik (chicken in thick coconut-milk gravy) of Kelantan. One Malay appe­tizer is ulam— shoots, leaves, or fruit dipped in or eaten with samba/(pounded chillies and shrimp paste).
Rice, after being boiled, is often fried with chillies, onions, and ikan bilis (anchovies) to make nasigoreng (fried rice). Other variations on plain boiled rice include nasilemak (boiled rice in coconut milk and eaten with sambil tunis, a preparation of chillies, anchovies, and coconut milk); nasi ulam (rice mixed with herbs and salted fish); and nasi dagang (rice mixed with thick gravy and fish) of Terengganu. Rice is sometimes boiled in small cases woven out of coconut-leaves to make ketupat. This is eaten with rendang (beef or chicken cooked over a slow fire in coconut milk, with chillies and certain condiments until the gravy thickens and dries into a de­licious coating), or at any time with satay (small pieces of chicken or meat skewered on bamboo sticks and baked over a charcoal fire). Satay is coated with thick peanut gravy. Many Malays like satay dipped in chilli sauce.
Religion. Islam is the national religion but the Malay­sian Constitution guarantees freedom of worship. The number of different religions in Malaysia is proof of reli­gious tolerance in the country. As well as mosques (Is­lamic places of worship), there are many Hindu and Buddhist temples and Christian churches throughout Malaysia. In fact, the main religions of the world, with their rituals, customs, and festivals are dominant fea­tures of Malaysia's multiracial culture.
About a dozen national holidays are governed by the Muslim calendar which varies from year to year in rela­tion to the Western calendar. The main holidays of the Chinese and Christian years are also observed.
The majority of Malays are Muslims, belonging to the Sunni sect of Islam (see Islam). Regular daily prayers and mosque attendance is an important feature of Islam. Muslims also have a religious duty to pay alms to help the needy.
Hari Raya Puasa is the major Muslim festival. It marks the end of the fasting month of Ramadan, a time of strict observances, when eating and drinking in daylight hours are forbidden. Every year, thousands of Muslim Malays perform the haj (pilgrimage) to the Islamic holy cities of Mecca and Medina in Saudi Arabia.
The majority of Malaysian Indians are Hindus. There is a small Sikh community. The two main Hindu festivals are Deepavali (Festival of Lights) and Thaipusam. Deepavali commemorates the overthrow of a tyrant king named Naragasuran. Thaipusam is a colourful festival connected with the fulfilment of vows.
Buddhism has a substantial following among the Chi­nese. Wesak Day is an important festival commemorat­ing the three great events in the life of Buddha, namely his birth, enlightenment, and death.
The main Christian denomination is Roman Catholi­cism. In addition there are small numbers of Anglicans, Methodists, Baptists, and other denominations. Chris­tian missions played a leading role in educating the peo­ple during the time when Peninsular Malaysia was a British colony.
Education. The system of formal education in Malay­sia consists of four levels graded according to the age of the students. The four levels are primary, secondary (lower and upper), post-secondary, and tertiary.
Children in Malaysia begin primary education at the age of 6 and continue for 6 years. There are three types of primary schools. The national primary school uses Malay as the language of instruction. Chinese and Tamil schools use Chinese and Tamil respectively as the basic language. More than 90 per cent of children of primary school age complete primary education.
In lower secondary school the main subjects are Bahasa Malaysia (the Malay language), art, English, gen­eral science, geography, history, health and physical ed­ucation, living skills, and moral or Islamic education.
After three years students sit for the Lower Sijil Rendah Pelalaran (Certificate of Education) examination. Suc­cessful students, who continue for two years of Upper Secondary education, take the Sijil Pelajaran Malaysia (Malaysian Certificate of Education) or the Sijil Pelajaran Vokasiona!Malaysia (Malaysian Certificate of Vocational Education). Students who wish to go to university then study for two more years and sit the Sijil Tinggi Persekolahan Malaysia (Malaysian Higher School Certifi­cate) examination.
Malaysia has seven universities. The oldest is the Uni­versity of Malaya. It was founded in Kuala Lumpur in 1959 although it can trace its origins back to the King Ed­ward VII College of Medicine, established in 1905, the Raffles College which began in Singapore in 1929, and the University of Malaya, in Singapore, which began in 1949. The University of Technology Malaysia and the University of Agriculture Malaysia, founded in the early 1970's, also originated from earlier institutions.
The University of Science in Penang opened in 1969 and the Universiti Kebangsaan (National University) in Bangi began in 1970. In 1982, the government assisted in founding the Universiti Islam Antarabangsa (Interna­tional Islamic University) in Petaling Jaya. In 1984, the Un­iversiti Utara (Northern University) opened in Kedah.
Two other important institutions for higher education are Majlis Amanah RakyatiMARA) (Trust Council for the Indigenous People) Institute of Technology, and Tunku Abdul Rahman College. They offer a wide range of semi- professional and professional courses, leading to certifi­cates or diplomas. They also otter degree-level courses jointly with universities in the United States. The Minis­try of Education also runs a number of polytechnics and 27 teacher training colleges. Total student enrolment in the universities and colleges in Malaysia is about 80,000. The government bears over 95 per cent of the cost of university education in Malaysia.
National celebrations. August 31 is celebrated as Malaysia's national day to mark the country's independ­ence. Parades and exhibitions are held to celebrate this event. Another important national celebration is held to mark the birthday of the yang di-pertuan agong (king of Malaysia) on June 5.
Several important religious festivals are celebrated nationwide by all Malaysians. But most have special sig­nificance for the particular ethnic group.
The Malays who are Muslims celebrate festivals of the religion of Islam throughout Malaysia. Ramadan is marked each year by fasting from sunrise to sunset.
The Hindus of Malaysia celebrate the festivals of Deepavali and Thaipusam. Chosen people walk on paths of fire with no apparent ill effects. Others have their skin pierced with long needles. They carry heavy religious ornaments over great distances into the temples. The Batu Caves, just outside Kuala Lumpur, are the main cen­tre for the annual Thaipusam festival.
The main Chinese religious festival is held to cele­brate the start of the Chinese New Year. It usually falls in late January or early February. The celebrations start on the first day of the new moon after the winter solstice (see Solstice). Families pray together. They thank the gods for the year gone by. They also celebrate with noisy rejoicing and feasting. The Chinese exchange gifts wrapped in red paper. They consider red a lucky colour. They let off firecrackers, light candles, burn joss sticks, and pray for their ancestors.
Another important event in the Chinese year is the moon festival. The celebrations begin on the 15th day of the 8th moon of the year. City dwellers join in the cele­brations. But it is essentially a time of thanksgiving for the harvest. They eat moon cakes and other delicacies at this festival time.
Christmas is a special time for both Christians and non-Christians in Malaysia. Hotels and shopping complexes have Christmas trees and other decorations. 











Kuala Lumpur, the capital of Malaysia, is called KL by locals. Its modern skyline is dominated by the 451m-tall Petronas Twin Towers, a pair of glass-and-steel-clad skyscrapers with Islamic motifs. The towers also offer a public skybridge and observation deck. The city is also home to British colonial-era landmarks such as the Kuala Lumpur Railway Station and the Sultan Abdul Samad Building.
Malaysia: 28.28 million (2010)
Singapore: 5.077 million (2010)
Jakarta: 9.608 million (2010)
Bandung: 2.395 million (2010)
Manila: 1.6522 million (2010)
Bangkok: 6.3511 million (2000)

Kuala Lumpur (pop: 1.589 million (2010)) is the largest city and capital of Malaysia. It is also the country's most impor­tant commercial centre.
The city of Kuala Lumpur occupies just over one-third of the Federal Territory of Kuala Lumpur. It lies in the Ke­lang Valley, midway between George Town and Singa­pore. For the location of the city of Kuala Lumpur, see Malaysia (map).
The city. The Kuala Lumpur metropolitan area in­cludes several old settlements such as Kepong, Gombak, Ampang, and Sungai Besi. All of these former towns now have new housing estates.
The rapid growth of the city has caused several prob­lems, including population pressure on land and roads, inadequate housing and public transport, and shortage of recreational space.
Parliament House and government ministries are west of the Kelang River. Skyscrapers in the northern and western sections of the city house the headquarters of major Malaysian companies and banks as well as those of multinational corporations and international hotels. There are several universities and colleges in and around the city.
The city has many places of worship for people of various religions. Malays are Muslims and the National Mosque can accommodate many thousands of people. There are also many Christian churches and Hindu and Buddhist temples.
Kuala Lumpur is a medium-size capital city which blends its colonial past with traditional shops and mod­ern skyscrapers. Petaling Street is the Chinatown of Kuala Lumpur. It is a typical Chinese business district with traditional covered footways and shophouses, which have shops on the ground floor and family homes upstairs. The shops and street stalls offer a variety of goods, food, fruit, and souvenirs. The street becomes a pedestrian area at sunset, crowded with shoppers and tourists looking for bargains. Many types of traditional products, such as batik, pewterware, and handicrafts, are also available in these shops and night markets (see Batik). There is a handicraft centre containing traditional Malay houses which present and sell the crafts of each of the Malaysian states.
To the west of Kuala Lumpur is Petaling Jaya, the first new town (specially planned town) of Malaysia and a sprawling residential industrial and commercial centre. Its middle-class community commutes daily to work in the city. Petaling Jaya is now the fifth largest town in the country, with a population of more than 200,000.
Places of interest. Along Jalan Sultan Hishamudin are several of the city's most distinctive architectural landmarks. Three buildings feature Moorish architec­tural styles with curving arches, domes, or minarets. These buildings include the old city hall, which was completed in 1897. The railway station and the Malayan Railway Administration Building date from the early 1900's. The Sultan Abdul Samad Building, where the state secretariat was formerly housed, was completed in 1897. It has a 43-metre copper-sheathed clock tower.
The National Museum is a striking building based on old Malay-style architecture. It has displays relating to Malaysian arts and crafts and history as well as the country's birds and mammals.
The National Monument is located in the Lake Gar­dens. This bronze sculpture commemorates the triumph of democracy over the Communist terrorism which had led to the proclamation of a state of emergency in 1948.
The six-tiered Theau Hou Temple, on a hill slope just outside the city centre, is one of the biggest Chinese temples in Southeast Asia.
The National Zoo has about 200 species of mammals, birds, and reptiles, from Malaysia and other countries. It also has an aquarium with more than 80 species of aquatic animals.
People. The population of Kuala Lumpur consists of Chinese, 320,000 Malays, 140,000 Indians, and others. The population has increased to more than three times its level at the time of Malayan independ­ence in 1957. The food of Kuala Lumpur reflects the vari­ety of the multiracial population. In roadside shops and in hotels, dishes available include food from Malays, Chinese, Indians, and other ethnic groups.
History. Kuala Lumpur, means "muddy river mouth."
It derives its name from its location at the meeting place of the Kelang and Gombak rivers. Founded as a tin min­ing settlement in 1859, it became the capital of Selangor in 1887 and of the Federated Malay States of Selangor, Perak, Negeri Sembilan, and Pahang in 1896.
Prosperity developed from the success of mining and rubber planting. Kuala Lumpur became a centre of com­merce and transport, and acquired its cosmopolitan character with Malay settlers, Chinese shopkeepers, In­dian labourers, British administrators, and Arab traders.
Kuala Lumpur progressed from a town council in 1898 to a municipality in 1948. It became the capital of the Federation of Malaya in 1957 and of Malaysia in 1963. In 1972, it was proclaimed a city and in 1974 it formed the core city of the Federal Territory of Kuala Lumpur. See also Kuala Lumpur (federal territory); Malaysia.
(Note: Theau Hou Temple stands on a hillside just beyond the central area of Kuala Lumpur City. Built in six tiers, it is one of the largest Chinese temples in Southeast Asia.)

Tuesday, 29 March 2016

Tan Sri Dr Zeti Akhtar Aziz

Tan Sri Dr Zeti Akhtar Aziz 
Vast experience: Zeti’s reputation was forged over a period of 16 years where she served as the head of Bank Negara, with many of those years fire-fighting crisis after crisis, big and small.

Tan Sri Dr Zeti Akhtar Aziz
-Who's thought women will be good with money? Tan Sri Dr Zeti Akhtar Aziz is the governor of Malaysian Central Bank and the longest serving governer of Bank Negara Malaysia. top10malaysia.com
-She the 1st woman appointed as central bank governor in Malaysia and Asia, and also the 1st woman within the top 10 rankings for central bank governors of the world.  op10malaysia.com
-She was part of the team that “bet against the IMF and won” in the aftermath of the 1998 Asian Financial Crisis when Malaysia declined aid from the IMF. themalaysianinsider.com
-Zeti is one of the most internationally respected central bankers and played a key role in turning KL into a global hub of the RM3 trillion Islamic finance industry.  themalaysianinsider.com
-In 2011, Bloomberg columnist William Pesek picked her as one of his four nominees to head the prestigious International Monetary Fund (IMF) following the resignation of Dominic Strauss Khan.  themalaysianinsider.com
-She put Malaysia at the forefront of the Islamic money market, and with carefully planned policies executed, Malaysia now has a substantial number of Islamic investors, both domestic and foreign.  top10malaysia.com

Governor gives her frank opinions on the central bank, her successor and the challenges the country faces
ByJAGDEV SINGH SIDHU and GURMEET KAUR
Saturday / 26 March 2016 / StarBizWeek / Cover feature
AS one of her last acts as governor of Bank Negara, Tan Sri Dr Zeti Akhtar Aziz will be asked to write something to be placed into a time capsule at Bank Negara’s new auto­mated cash centre. That capsule will be opened during the 100th anniversary of the central bank in the year 2059.
She has not decided what will be penned on that special sheet of paper that will be given to her, but the symbolic aspect of that gesture goes some ways in explaining the respect her colleagues have for the retiring governor.
Her reputation was forged over a period of 16 years where she served as the head of Bank Negara, with many of those years fire-fighting crisis after crisis, big and small. Her career spanned 35 years at the cen­tral bank and Zeti was the head of economics at Bank Negara during the Asian financial crisis. After being appointed as its governor, she had to steer the economy through other rough waters, most notably, the global financial crisis.
Apart from navigating the econo­my and the banking system through rough patches, Zeti also oversaw the transformation of the banking sys­tem. During the past 16 years, Malaysia’s banking system has grown from banks that were pre­dominantly domestic-focused to a few that have sprawling regional footprints. It was during her tenure that two financial sector master- plans were drawn up and executed, resulting in improved efficiency,  delivery channels and structural processes by the banks.
Apart from the reach and servic­es of banks, domestic financial insti­tutions have emerged stronger from a period of consolidation and capi­talisation that by the central bank’s own assessment, is now able to withstand just about any imagina­ble crises.
The regularly conducted stress tests it conducts attest to the strength of the banking system. Those tests also help the central bank check the pulse of the banking sector to ensure there is no undue build-up of risks that could derail or puncture the financial system. The process of approving financial prod­ucts in Malaysia has also kept bank­ing relatively simple and steady.
But it has not always been a trou­ble-free career as governor. Zeti has had her detractors, which she does acknowledge. The latest has been the way Bank Negara has handled the issues regarding IMalaysia Development Bhd (1MDB), which she now appears to be atoning for past oversights.
But her record, regardless of the hiccups, is one where there have been more accolades than criticism. In her final briefing of the media ahead of the release of Bank Negara’s 2015 annual report, she spoke candidly on a number of sub­jects, about her career and the state of the economy. Below is a ques- tion-and-answer session she had with the media.
In terms of the development of the financial sector, what are you most proud of in terms of the challenges faced and what are your disappointments during your tenure?
The achievements of the central bank have been backed by a very solid team (sitting beside and behind me).
We drove the achievements and many of that were highly challeng­ing. When I complete my term, I give the assurance that this institu­tion is still very solid and resilient, and therefore, has every potential to continue doing the very good job it has been doing and delivering to the people of this country.
Of course, managing a challeng­ing environment, including crises, was one of the accomplishments of this bank. That was very, very diffi­cult.
The other relates to areas involv­ing other countries where we need to build the consensus for the great­er good of the region. This was very challenging, as some of these took years and some of it set us so back that we went back to the position where we started. We were sort of worse off and that was very stress­ful. Our challenges were in the area of financial integration, Islamic finance, in the area to get recogni­tion by the international communi­ty on certain issues that we thought were important for the emerging world and the region.
It’s rewarding to see it through during a person’s career lifetime. But it’s the team that did it and it’s a privilege to be leading the team.
I won’t say there were disappoint­ments, but I wish we would have moved a litde bit faster on the migration to electronic payments. There were other things that were more important at that time. Now we are placing higher priority on  this because the benefit of it would be so immense.
Integration is an ongoing thing... we are not there by any means, but at least we have a platform from which we can leap forward.
In terms of the domestic economy and financial markets, they contin­ue to function very well.
Tan Sri, you had talked earlier that you don’t want the position of governor to be politicised. You talked about the virtues and strength of Bank Negara as an institution. How important is it that a governor is a person that will be well-liked by the markets and will continue the work the central bank has done under your leadership?
I have to say that I wasn’t always well-liked. There were times that some of our policies were attacked quite viciously. But we undertook those policies because we had the conviction that they were the right policies to do. It’s not about being well-liked... it’s about people having the confidence that you are going to do the right thing and having the capability also to do it. So, there are a lot of demands on the governor. First of all, having the capability to do it and having the confidence of the people that you are going to do the right thing.
Will the wrong candidate set the central bank back in terms of development that has taken place under your tenure?
The person has to be ready and able and for the team to be here and intact because it is not about one individual. While leadership is important, equally important is for the team to stay together. And the team here is of a very high quality ... we spend a lot of time investing in people. We have one of the best talent collectively in all the areas from reserve management to super­vision, regulation and economic analysis of international affairs.
Like in any organisation, the CEO has to command the respect and confidence of the team. Without that, the central bank will be set back.
Is it a concern that the independ­ence of the bank may be compro­mised if someone from the out­side comes in as governor?
Everyone who works in the cen­tral bank knows that independence is the most precious thing that we want to safeguard. This culture of independence was already there before my time; the culture that we don’t want to be drawn into politics. In the 60s and 70s, we did not have the kind of political pressure as we had during the Asian financial cri­sis. There is a corporate culture which everyone takes great pride in the feeling that our actions are not drawn into politics and driven by any political agenda.
The political agenda changes all the time and if we are drawn into such matters, the central bank will lose credibility and respect.
The central bank gets its powers from the respect and confidence the people have in us. This is where the power of the central bank is derived from. It’s the same as all other cen­tral banks.
How would you describe the changes and transformation the Malaysian economy has under­gone in the past 16 years?
The Malaysian economy has been able to withstand a lot of shocks like the energy and commodity shocks, the volatile and disruptive financial markets, the surges of inflows and outflows.
Are we satisfied? I would say no because in our assessment, we could be so much better in terms of being on a higher phase of growth. Because we are ambitious, at least I am ambitious in anything that we do, if we compare ourselves with some of our peers, we are doing quite well. But if we compare our­selves with, say, South Korea, the country was poorer than us before but it is now a developed country. So, we ask ourselves why aren’t we there too?
So, how can we make ourselves better?
Several years ago in 2009, we made a presentation to the Cabinet. We were discussing among our­selves the three most urgent things that needed to be addressed. When we presented it to the Cabinet, we asked to pick one and after I reflect­ed for a while, the answer was edu­cation.
From the entry point to the CEO level, we have one of the best edu­cation programmes. We spend so much effort on this but we wish it’s across the board.
The other two were price distor­tions and having the broadband infrastructure that is important to advance the economy. You can have the other two but without educa­tion, you still cannot move forward.
In the short to medium term, what is the risk to the economy?
Is the 1MDB issue still a certain risk?
The current risk volatility in the financial markets. If our level of indebtedness goes higher (at the current level it is just manageable), that means that as we go forward and take on more and more debt, it will become like what Europe is fac­ing. That is even if you get higher income or better growth, you will have to repay your debt. So, you are consuming now based on your future income, which means we are getting our future generation of grandchildren and great grandchil­dren to repay for our excessive expenditure.
In the current environment, if we don’t rein in our borrowings, not only household or corporate but the public sector also, it poses a future risk. Right now, everything is about a manageable level. It’s not alarm­ing or a great concern now, but beyond that is a future risk.
Then, there are other issues like an ageing society. Fourteen years from now in 2030,15% of our popu­lation will be ageing, which means we would need to have facilities to support them. And we have to start preparing for it now. We can deal with the current challenges because we had prepared for it 10 years ago.
How do we define the independ­ence of the central bank?
There should be no external influence on the decision-making process of the central bank in regards to our mandate.
A few days ago, at one panel dis­cussion meeting where the audi­ence was made up of central bank governors and their delegations, a question was posed on how the gov­ernors dealt with interference. That’s a question all governors share with each other. The gover­nor of the Reserve Bank of South Africa’s response was: you have to stand your ground, which means do what is in the best interest of the country. When it came to my turn to give a response, I said, “of course the central bank has to stand its ground, but better be sure you are standing on solid ground”. It drew laughter from the floor. Because if you want to be able to stand your ground and be able to deliver for the people of this country, you have to stand on solid ground. We worked with the Government to do all this.
How have you been dealing with politicians in this country? Has it been difficult over the years?
We have a professional relation­ship. We don’t get to know them well. That is how it is and that is how I guide.
You can’t be their friend, but that does not mean we are not going to work with them. We have no prob­lems working with so many agen­cies. Take small and medium enter­prises (SMEs) for instance. We have to work with many agencies. It all started with why banks were not lending to SMEs and when we asked the banks, they said it was because the SMEs were at a low level of development because their contribution to the economy was less than 7% then. So, we recom­mended a few things like setting up a National Council, which the Government did during Tun Dr Mahathir’s time.

Then, we wanted to set up an agency - SME Corp - to be inde­pendent in reporting to the board. Just about every ministry attacked us for that and said that it would erode their powers. We went on with this and demonstrated that their powers were not eroded. As a result of the formation of the SME Council and SME Corp, now the con­tribution of SMEs to growth is more than 30%.
Tan Sri, earlier on you had talked about building future resilience and being focused on some key
challenges like productivity and technology. The brain drain seems to be at a critical stage as highlighted by some reports. How does this affect the building of future resilience?
I think every effort is being done to address the brain drain. We need the talent to remain and we need to build the existing talent. And most of all, we need strong institutions as well. We need many things to real­ise that.
This also relates to moving up the value chain and if the job opportu­nity is not there to keep the talent,
then the talent will move elsewhere. It’s all part of a circle. If you have an economy that is moving up the value chain, there would be job opportunities for the talent and they will stay.
Are we moving up the value chain at the required pace?
If we compare ourselves against South Korea, we could have been much higher up the value chain.
One of the things that is holding us back is the over-dependence on low-cost labour. While our economy cannot completely not need low-cost labour, the question is one of over-dependence, which is shuttling us to a particular state of economic activity and preventing us from pro­gressing further.
We can’t be competing on cost, we have to compete on quality and that will allow us to move up the value chain. The number of patents by our residents is one of the low­est. These are some of the structural things that we must address.
How do we regain the loss of investor confidence?
The point I want to emphasise is that Malaysia is in a position to manage the current environment and is still growing in 2015 despite the collapse in commodity prices. Of course, there is some loss of invest­ment activity in the economy because of confidence issues and waiting on the sidelines for some certainty about where the ringgit is headed. We got the International Trade and Industry Ministry work­ing very hard to attract invest­ments. Malaysia is still attracting investments into the country, as we have a low cost of doing business, but we need to have the talent so that we get the right type of invest­ments.
Tan Sri, of the few economic cri­ses under you tenure, which was the most challenging?
It was the 1997/1998 Asian eco­nomic crisis because it involved the whole region and it was made worse on how it was managed in some of the other countries with no end in sight. In 1997, Malaysia still had 7% growth. Then in 1998, for the first time in our history, we had minus 7%. We never had that kind of economic contraction.
The good thing at that time was that the developed world was grow­ing well. We managed to stabilise the domestic economy and picked up based on the demand from the global economy.
The issue we are facing now under the current circumstances is that our domestic fundamentals are relatively sound but the world envi­ronment is not as good.
In the annual report, household debt is at 89.1% and does not seem to be going down.
Of course, as debt is growing fast­er than income, but assets are more than two times liability.
In terms of quality of debt, the non-performing loan ratio is at 1.5%, meaning that there are not many loans that are turning bad and the people who borrowed can afford to borrow. We look at a wide range of indicators, but if this trend continues, then it will become a concern.
From an economic perspective, if you have credit-driven growth, it is not a sustainable economy. As a pol­icymaker, we also have to be cau­tious from the perspective of how fast we want that to grow. Addressing the issue on that level, given the demographics of our soci­ety, it is going to continue to grow. But we need to look at who is this debt with; is it with people who can service the debt or those who are financially stretched?
Are you going to write your mem­oir?
I will do some writing, some seri­ous writing on subject matters like integration or central banking.
Are you going to play a more active role in society?
I have not had time to think about that, but I know I am going to do some writing and spend some time with my family. The bank has not been too kind to me in allowing any free time. The past 12 months have been back-to-back in terms of functions. My life has been very full this past year but I enjoyed it.
When you took over, did you expect to last 16 years?
I didn’t, and people ask me why I am not staying on to match Tun Ismail Mohd Ah’s record of 18 years.
That is not the objective. The thing that is important is what you do while in office.

The succession
By FINTAN NG / fintan@thestar.com.my
Saturday / 26 March 2016 / StarWeek /
THEBE is always speculation in banking and financial circles over who will eventually become the next central bank chief. So it is in Malaysia, where, as governor Tan Sri Dr Zeti Akhtar Aziz’s tenure comes to an end, there has been a lot of interest over who will suc­ceed her.
This time around, interest is not just confined to bankers as the wider public would also like to know who will eventually helm Bank Negara.
Four names have emerged as possible candidates, with the cen­tral bank’s most senior deputy governor, Datuk Muhammad Ibrahim, a career central banker, said to be the internal candidate of choice.
Besides him, the names of three others have been speculated as possible successors - the Minister- in-charge of economic planning in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, Malaysian ambassa­dor to the United States Datuk Awang Adek Hussin, and the sec­retary-general of the Treasury at the Finance Ministry Tan Sri Mohd Irwan Serigar Abdullah.
The erosion of trust in public institutions stemming from issues related to 1Malaysia Development Bhd (1MDB) has made the matter of her successor more urgent since part of Bank Negara's responsibility is to safeguard financial stability as clearly stated in part six, chapter one of the Central Bank of Malaysia Act 2009.
It has come to the point where Zeti has had to deny that there was any political interference in her decision not to pursue anoth­er five-year term as governor, which, if the King gave his con­sent, would have made her the longest serving governor, surpass­ing Tun Ismail Mohamed Ah’s 18-year tenure.
Zeti has also said that the gov­ernor’s position should not be politicised. She made that clear in a Wednesday media briefing on the annual as well as financial and payment systems reports that the central bank’s independence should be safeguarded in order that it can fulfill its duties and responsibilities.
Bank Negara is seen by the public as about the only institu­tion that has stood its ground on 1MDB and this was underscored by Zeti’s comments in last Wednesday’s media briefing that she would like to resolve the 1MDB issue before she leaves office.
But there is little chance that she can resolve the issue in the weeks remaining to her as gover­nor. It is very likely that her suc­cessor will have to deal with the issue relating to lMDB’s failure to submit documentary evidence pertaining to its inability to repat­riate the US$1.83bil (RM7.16bil) that was used abroad.
Whoever succeeds Zeti will also have to manage monetary and financial stability at a volatile time for the global economy.

Useful links
Malaysia: a less hawkish hold
Najib: Malaysia's born-again liberal
International Women Day 10 Most Memorable Achievements by Malaysian Women
Another Brick In The Wall

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