Policies should have global perspectives: BNM governor

KUALA LUMPUR: Monetary and fiscal policies should have global perspectives as any fallout often spread across the borders, says Bank Negara Malaysia (BNM) governor Datuk Nor Shamsiah Mohd Yunus.

In a world that is increasingly buffeted by protectionism and the risk of financial contagion, central banks must cooperate with each other, she said.

“However independent a central bank is from the government, it cannot function in isolation. Cooperation at national, regional and international levels is necessary.

“As guardians of the financial system, central bankers must maintain public trust,” Nor Shamsiah said at the commemoration of the centennial birthday of the first governor of BNM, Tun Ismail Ali, and the launch of Tun Ismail Ali – Paragon of Trust and Integrity memoir yesterday.

Nor Shamsiah said trust between central bankers was formed out of reliability, stemming from competency which was practised since the central bank was set up.

“As the first governor of BNM, Tun Ismail Ali had planted the principles that now run deep within the bank and gave us the vision to soar towards,” she said.

Not only does a central bank need to be careful custodians of monetary policy and an able adviser to the government, Nor Shamsiah said, BNM also needed to be seen and recognised as the competent authority to discharge these roles.

Ismail’s memoir, which was written by his sister, Tun Dr Siti Hasmah Mohd Ali, was launched by Prime Minister Tun Dr Mahathir Mohamad.

Nor Shamsiah said the book launch was to honour Ismail as a nation builder, a titan of the Malaysian economic and financial sector.

“He was an unassuming man but he powered the wheels of the nation – and each turn of the wheel left a mark on history. We have spoken to more than 20 individuals who were close to governor Ismail Ali and dedicated hundreds of pages to his life.

“But it is certain that we have yet to do justice in capturing the breadth and depth of his persona. It is our hope that his vision, dedication and resilience would inspire our future generations and to prepare them as they partake in the dynamic financial ecosystem,” she said.

As BNM governor, Nor Shamsiah said, Ismail showed unwavering commitment to harness the spirit of trust and cooperation among the regional and international central banking community, amid the rising challenges confronting the global economy and financial system. – Bernama