AFI has released a new case study documenting Malaysia’s decade long effort at consumer protection.

In the period after of the Asian Financial Crisis of 1997-98, Bank Negara Malaysia (BNM) received a mandate to reform financial practices with the aim of building greater financial stability. The Bank, led by Dr. Zeti Akhtar Aziz -Governor, implemented its Financial Sector Master Plan (FSMP), which saw consumer protection and market conduct as key areas targeted for reform.

Financial stability was the main goal of the FSMP, and to achieve this, the Plan focused on creating a clear regulatory framework for financial institutions, consumer education, and the enforcement of fair market practices. The hope was to create a strong base on which the financial sector could rest. Taking a realistic, long-term view, the FSMP was initiated over the course of a decade.

A pivotal point came with the establishment of the Consumer and Market Conduct Department (CMC) which combined financial market oversight of various government bodies. The CMC, led by Koid Swee Lian, initiated standards of conduct ranging from transparency to debt collection, and created market oversight with effective enforcement. To achieve balanced action, the financial base consisting of consumers, was empowered through education and the ability to seek resolution of grievances.

Bank Negara Malaysia is a principal AFI member and a member of the Financial Inclusion Data Working Group (FIDWG). Within the bank, Koid Swee Lian is Director of the CMC and an AFI Policy Champion. Furthermore, the bank’s governor, Dr. Aziz Zeti Akhtar, will give a special address at the Financial Inclusion Policymakers Forum (FIPF) held in Kuala Lumpur from 5-6 April 2011. Shortly after the event on 7 April, will be the launch of AFI’s Consumer Empowerment Working Group (CEMC).
For more information on the working group write to cemc@afi-global.org and watch the AFI website.