Deloitte: Stronger regulators, financial institutions collaboration needed for resilient recovery

KUALA LUMPUR, April 5 (Bernama) -- Regulators and financial institutions need to lead in a more collaborative manner to achieve the sustainable, inclusive and resilient recovery that is hoped for by the nation, Deloitte said.

Financial service regulatory risk leader Justin Ong said as transformation takes place globally, initiatives on sustainability and innovation will advance full steam ahead, transforming the financial sector at an accelerated speed.

In navigating the challenges ahead, he said Malaysian financial institutions must remain committed to executing structural reforms.

"Financial institutions in Malaysia have responded well to the pandemic, having seen relatively limited direct impacts during the 2008 global financial crisis.

"The evolving regulatory agenda in Malaysia will continue to be complex and challenging amid institutions’ continued focus on growth, as well as social and economic inclusion," he said in a statement in conjunction with Deloitte's 2022 Malaysian Financial Sector Regulatory Outlook.

Ong said moving forward, the digitalisation process will continue and the world will progress its decarbonisation and sustainable development efforts.

"We may even see intersections between these two themes and the increased use of digital technology to achieve sustainable growth goals.

"To maintain financial stability and ensure customer protection during this transformation, there will be a number of issues we need to pay attention to and address with caution," he added.

Ong noted that Malaysia's economic prospects remain highly uncertain, while significant downside risks remain in 2022.

"In general, there remains a high degree of uncertainty in current economic projections, and even the tentatively positive economic outlooks are predicated on assumptions that lockdowns and supply chain disruptions continue to ease.

"For regulators, ensuring the ongoing financial and operational resilience of financial institutions will remain paramount, especially as they continue to meet the needs of their customers and the economy," he said.

-- BERNAMA