Bank Negara's tough measures saved economy from chaos, says Zeti

Bank Negara Malaysia's vigilance and rigorous supervisory measures plus tough measures instituted after the 1997/98 Asian financial crisis had saved the country's economy from numerous economic and financial crises and descent into chaos.

"We (have to) prepare ourselves for the next crisis," Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said at the first Leadership Energy Summit Asia 2013 organised by the International Centre for Leadership in Finance (ICLIF) here, Tuesday.

"The transformation of our financial system and the rebalancing of our economy to have a strong domestic economy have helped us to survive this global financial crisis.

"If we had not done this after the Asian financial crisis, we would not have been able to survive the crisis," she said.

Zeti, who was recently accorded 'Grade A' among the heads of central banks for the 10th time by the Global Finance magazine, has been Governor since 2000.

"I knew at that time, if we were going to be an effective central bank for the future, if we were going to be able to deliver results in the future, we needed to be dramatically transformed.

"Without this transformation we would not be able to deliver," she said in front of 500 delegates.

On her vision of building a Central Bank for the future, Zeti said it was important "to have a sense of purpose of what one wants to achieve and having the most compelling purpose is key."

To achieve the purpose, one needs to have, among others, powerful energy, unwavering determination, clarity in vision and conviction for the future, she said.

Even though Zeti successfully led the country through two financial crises, she said, "You can never sit back, pat yourself on the back, and say you have done a great job as the environment can change dramatically."

In the lifetime career of a central banker, she added that they will be confronted, at least once, if not, twice, with a financial crisis.