Welcoming Remarks by Director-General of Labuan FSA on The Labuan International Finance Lecture Series 2014
The Labuan International Finance Lecture Series 2014
“Good Corporate Governance: Wither Without It”
Welcome Address By
Encik Ahmad Hizzad Baharuddin
Director-General
Labuan FSA
26 September 2014
Grand Dorsett Hotel Labuan
Bismillahhirahmanirrahim
Assalamu’alaikum warahmatullahi wabarakatuh; and a very good morning
Datuk Azlan Hashim
Authority member of Labuan FSA,
Dato Mohd Nadzri
Authority member of Labuan FSA,
Tan Sri Dato’ Megat Zaharuddin
Member of the IAP,
Member of the IAP,
H.E Cho Byungjae
Ambassador of the Republic of Korea
Mr Jean Pierre Sabourin
CEO, Malaysia Deposit Insurance Corporation (PIDM)
Chairmen of the Labuan Financial Industry Associations,
Distinguished Guests,
Ladies and Gentlemen
,
- It is my pleasure to wish all of you a warm welcome to this Labuan International Finance Lecture Series 2014. I am indeed grateful by your continuous support and encouraging participation in the lecture series.
- Now in its seventh year, the lecture series has become a meaningful event that brings renowned experts in Malaysia and from abroad, to share and discuss topical issues impacting the global economy and financial industry. For this year, we are privileged to have the presence of Mr. Jean Pierre Sabourin, Chief Executive Officer of the Malaysia Deposit Insurance Corporation or PIDM, as our Guest Speaker, to deliver his lecture titled “Good Corporate Governance: Wither Without It”.
- Corporate governance has and always been an important agenda even more so today in the aftermath of the recent financial crisis. Reform efforts globally have been focused on promoting greater internalisation of good governance culture. The recent decade has witnessed the increasing calls to establish the proper mechanism necessary to inculcate ethical business behavior, greater accountability and transparency. Policy makers and regulatory authorities have, and are becoming intensively focused to develop a more robust corporate governance framework, that contributes to overall financial stability and sustain economic growth.
- In the financial sector, regulatory efforts to strengthen corporate governance are increasingly challenged, given its important intermediary role that thrives on public trust and confidence, balanced against depositors and shareholders demands, as any lapse in governance of a systematically important financial institution would possibly lead to crippling implications and costs to the economy. Whilst financial institutions can be subjected to a higher stringent international standards of integrity and proper conduct of business by regulators, it is incumbent upon the institution itself to embrace the standards fully and instill a strong internal corporate governance culture. This applies to not only to financial institution but all corporate entities.
Ladies and Gentlemen,
- Of paramount importance is for the entities to prosper well in a conducive environment induced by the internal and external governance drivers and forces to maintain its reputation as a strong and well governed institution. With the continued transformation in the financial sector to support the greater global and regional economic integration such as the one driven under the ambit of the ASEAN Economic Community, the high governance standards adopted by industry players would position the individual institution at a better stead thus, catalysing others to conform to the higher governance standards. Hence, a greater convergence of corporate governance standards set in a competitive but conducive environment would be expected.
- In this evolving environment, the Labuan IBFC in its role to facilitate cross-border financial transactions and build international linkages, will consistently need to uphold its global reputation where corporate governance standards and best practices is well embraced and practiced. However, it will need only one or two institutions miserably failing governance control and expectation, who would certainly tarnish the image of the centre. With this in mind, this year we have chosen the topic on governance for all of us to savour and internalize, which would invariably provoke thought and actions, geared towards the betterment of the Labuan IBFC.
Ladies and Gentlemen,
- In this endeavor, we have with us today, the speaker Mr. JP Sabourin, who he himself embodies strong corporate governance culture in his organization and instill them in others, to share his life-long experience on the topic “Good Corporate Governance: Wither Without It’. Before I called-upon our Guests-Speaker to deliver his lecture, allow me to briefly introduce him to the participants here today.
Mr. Sabourin began his career at the Canada Deposit Insurance Corporation (CDIC) in 1976 and moved progressively to more senior positions until his appointment by the Government of Canada as President and CEO in 1990. Under his leadership, CDIC developed into a best practice deposit insurer while successfully resolving over 40 financial institution failures. In 2006, CDIC was recognised by the members of International Association of Deposit Insurers (IADI) and received the IADI Deposit Insurance Organisation of the Year Award for its achievements and contributions to the development of effective deposit insurance systems.
In 2005, Mr. Sabourin was sought out by the Malaysian Government to establish Perbadanan Insurance Deposit Malaysia (PIDM) and was appointed its first-ever CEO, a position he continues to hold. PIDM has over the years developed into a well governed and well managed financial consumer protection and resolution authority, safeguarding the depositors’ interest by overseeing the stability of member institutions of PIDM.
Over his 35-year career in the field of deposit insurance both in Malaysia and Canada, Mr. Sabourin has gained unparalleled expertise and experience in all aspects of deposit insurance. His expertise is widely sought by many jurisdictions around the world planning to establish or improve their deposit insurance systems. He is also a much sought-after speaker in the areas of governance in government enterprises, intervention and failure resolutions, and on leadership and sound management for financial institutions.
- I am very sure we have a lot to learn from Mr. JP Sabourin. On that note, let me invite Mr. JP to deliver his lecture on “Good Corporate Governance: Wither Without It”.
Thank you.
