KUALA LUMPUR (Aug 14): Bank Negara Malaysia (BNM) has cautioned that major structural changes are reshaping the global monetary and financial system, urging the need for quick adaptation to avoid being exposed to new and emerging risks.

BNM governor Datuk Seri Abdul Rasheed Ghaffour said traditional roles of central banks are under growing pressure from challenges such as global economic fragmentation, climate change, and the rapid digitalisation of finance.

“We gather at a time of great transformation in the global monetary and financial system, where long-standing boundaries of central bank mandates are being tested by unprecedented structural shifts,” Abdul Rasheed said during the launch of the Tun Ismail Ali Centre of Excellence (TIACOE) at the Asia School of Business (ASB) here on Thursday.

He warned that if BNM is not prepared, it could be “caught off guard” by new threats that may disrupt current systems and policies.

Former BNM governor Tan Sri Dr Zeti Akhtar Aziz said this era is marked by disruptive forces all with deep economic effects and it has therefore become more important than ever for us to build our resilience and maintain our monetary and financial stability if we are to achieve shared prosperity. (Photo by Shahrill Basri/The Edge)

Quoting Malaysia’s first central bank governor, the late Tun Ismail Mohamed Ali, he said central banks operate “in an imperfect world” using tools whose outcomes are not fully understood, and where decisions often have to be made amid uncertainty.

“This quote remains deeply relevant today, where navigating the new economic landscape demands central bankers to display good judgment, resilience and above all, adaptability,” he said.

Former BNM governor Tan Sri Dr Zeti Akhtar Aziz also spoke at the event, noting that this era is marked by disruptive forces — including climate change, geopolitical tensions, and rapid technological advancement — all with deep economic effects.

“It has therefore become more important than ever for us to build our resilience and maintain our monetary and financial stability if we are to achieve shared prosperity,” Zeti said.

Abdul Rasheed reaffirmed BNM’s commitment to evidence-based policymaking and its role in global policy discussions on critical issues such as climate change, artificial intelligence (AI), Islamic finance, and changes in the international monetary system.