KUALA LUMPUR: Malaysia must continue to strengthen and apply its local expertise and innovative capacity in financial and monetary economics, particularly in an environment that is highly dynamic and constantly evolving.

Former Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said the world is facing numerous disruptive developments, including the climate crisis, major wars, and pandemics, all of which have had significant economic repercussions.

She noted that major policy shifts in advanced economies, along with transformative advances in technology, digitalisation and artificial intelligence, have also introduced significant challenges that must be managed.

“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,” she said.

Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour echoed the views.

He said forces such as geoeconomic fragmentation, climate change and rapid digitisation of finance are increasingly shaping the global economic landscape with far-reaching implications for the international financial and monetary system.

“If unprepared, central banks risk being caught off guard by emerging risks which could challenge incumbent systems and established frameworks,” Abdul Rasheed said in his welcoming remarks.

Both leaders were speaking at the launch of the Tun Ismail Ali Centre of Excellence (TIACOE) by Asia School of Business here today.

Tiacoe is a research hub dedicated to promoting scholarship and thought leadership in monetary and financial economics.

Zeti, who is the founding chair and co-chair of the Asia School of Business’ board of governors, said Tiacoe is envisioned to advance research in the field and strengthen the capacity of local higher learning institutions.

It also aims to expand outreach through engagement with academics, the private sector, students and the public.

Named after the late Tun Ismail Mohamed Ali, Malaysia’s first central bank governor and a prominent figure in the nation’s financial history, Tiacoe is endowed by Bank Negara and housed at Asia School of Business.

Even before its official launch, the centre had begun building its foundation through various initiatives, including research seminars featuring distinguished international speakers.