Page 126 - Malaysia 2016
P. 126
2016
financial imbalances. In addition, given Directors oversees the institution’s
the expectation of continued volatility general policies, administration,
in external flows, the Bank’s monetary performance in delivering its mandates,
operations will be directed towards management of risks, financial
ensuring that domestic liquidity in the management, and reserves and
financial system will remain sufficient to currency management. In 2015, two
support the orderly functioning of the Board members completed their terms
domestic financial markets. and four new Board members were
appointed. Two new external members
Fiscal policy in 2016 will continue to were also appointed to the MPC, which
focus on fiscal consolidation. The 2016 marks the first time that the MPC has
Budget was recalibrated in January included members from outside the
2016 to incorporate the expected Bank. The new appointments add to
decline in global oil prices. Government the diversity, collective experience,
spending was reprioritised and expertise and knowledge of the Board
measures were introduced to broaden and the MPC, further strengthening the
revenue sources. Fiscal spending will Board’s oversight of the Bank and the
be prioritised towards high impact MPC.
infrastructure projects that could have
large multiplier effects by increasing the In 2015, initiatives were implemented
productive capacity of the economy. to ensure continued strategic focus
In addition, emphasis will continue to and a robust risk management culture
be accorded towards ensuring inclusive in all aspects of the Bank’s operations.
and sustainable growth through welfare The Bank’s Business Plan for 2015 - 2017
enhancements, particularly in the form provides organisational focus and
of socio-economic support to the lower- clarity of the Bank’s key outcomes and
and middle-income segments to help strategies over the medium-term. During
them cope with the rising cost of living. the year, the Bank refined its risk appetite
and tolerance statements based on
Given the expectation of a challenging more granular data. This is to ensure
global financial environment, Malaysia that decisions are made with careful
will likely be confronted by volatile consideration of the risks involved and
movements in capital flows. However, with appropriate mitigating measures.
Malaysia’s deep and developed The risk management function is
financial markets are well-positioned complemented by a risk-based internal
to intermediate these flows, thus audit function for all critical operations
ensuring that the functioning of the of the Bank.
domestic financial markets will continue
to be orderly and supportive of the The Bank practices prudent financial
real economy. Malaysia’s ability to management, and vigorously pursues
withstand external shocks will also be organisational efficiency. Attracting
augmented by its ample buffers and and retaining talent of the right calibre
robust policy frameworks that have is a key policy. The Bank maintains
been steadily built over time. its heavy investment in building the
technical and leadership skills of its
Governance, Organisational staff. To keep abreast with the rapid
pace of technological change, the
Development and Communications Bank undertook an independent review
of its Information and Communications
As an institution that serves in the Technology (ICT) architecture in 2015.
best interest of the nation, the Bank Given increased uncertainty in the
economic and financial environment,
has always placed great emphasis
on strengthening its governance
standards, accountability and internal
capabilities. The Bank’s Board of
financial imbalances. In addition, given Directors oversees the institution’s
the expectation of continued volatility general policies, administration,
in external flows, the Bank’s monetary performance in delivering its mandates,
operations will be directed towards management of risks, financial
ensuring that domestic liquidity in the management, and reserves and
financial system will remain sufficient to currency management. In 2015, two
support the orderly functioning of the Board members completed their terms
domestic financial markets. and four new Board members were
appointed. Two new external members
Fiscal policy in 2016 will continue to were also appointed to the MPC, which
focus on fiscal consolidation. The 2016 marks the first time that the MPC has
Budget was recalibrated in January included members from outside the
2016 to incorporate the expected Bank. The new appointments add to
decline in global oil prices. Government the diversity, collective experience,
spending was reprioritised and expertise and knowledge of the Board
measures were introduced to broaden and the MPC, further strengthening the
revenue sources. Fiscal spending will Board’s oversight of the Bank and the
be prioritised towards high impact MPC.
infrastructure projects that could have
large multiplier effects by increasing the In 2015, initiatives were implemented
productive capacity of the economy. to ensure continued strategic focus
In addition, emphasis will continue to and a robust risk management culture
be accorded towards ensuring inclusive in all aspects of the Bank’s operations.
and sustainable growth through welfare The Bank’s Business Plan for 2015 - 2017
enhancements, particularly in the form provides organisational focus and
of socio-economic support to the lower- clarity of the Bank’s key outcomes and
and middle-income segments to help strategies over the medium-term. During
them cope with the rising cost of living. the year, the Bank refined its risk appetite
and tolerance statements based on
Given the expectation of a challenging more granular data. This is to ensure
global financial environment, Malaysia that decisions are made with careful
will likely be confronted by volatile consideration of the risks involved and
movements in capital flows. However, with appropriate mitigating measures.
Malaysia’s deep and developed The risk management function is
financial markets are well-positioned complemented by a risk-based internal
to intermediate these flows, thus audit function for all critical operations
ensuring that the functioning of the of the Bank.
domestic financial markets will continue
to be orderly and supportive of the The Bank practices prudent financial
real economy. Malaysia’s ability to management, and vigorously pursues
withstand external shocks will also be organisational efficiency. Attracting
augmented by its ample buffers and and retaining talent of the right calibre
robust policy frameworks that have is a key policy. The Bank maintains
been steadily built over time. its heavy investment in building the
technical and leadership skills of its
Governance, Organisational staff. To keep abreast with the rapid
pace of technological change, the
Development and Communications Bank undertook an independent review
of its Information and Communications
As an institution that serves in the Technology (ICT) architecture in 2015.
best interest of the nation, the Bank Given increased uncertainty in the
economic and financial environment,
has always placed great emphasis
on strengthening its governance
standards, accountability and internal
capabilities. The Bank’s Board of
