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34th SEACEN BOG Minutes Page 1 of 27

MINUTES OF THE THIRTY-FOURTH

SEACEN BOARD OF GOVERNORS MEETING

21st November 2014

Port Moresby, Papua New Guinea

1. The Thirty-Fourth SEACEN Board of Governors (BOG) Meeting was hosted by the

Bank of Papua New Guinea (BPNG) in Port Moresby, Papua New Guinea on 21 November

2014, in conjunction with the Fiftieth SEACEN Governors’ Conference and High-Level

Seminar with the theme “Regional Initiatives in the Midst of Vulnerabilities.”

2. The Meeting was attended by 19 of 20 members of the BOG or their

representatives. SEACEN was represented by Mr. Hookyu Rhu, Executive Director. The list

of BOG members and/or representatives who attended the Meeting is presented in

Attachment 1.

Agenda Item I: Election of Chair

3. Mr. Loi Bakani, Governor of BPNG was unanimously elected as Chair of the Thirty-

fourth SEACEN BOG Meeting, and will remain as Chair of the BOG until the next BOG

Meeting.

4. On behalf of the BOG, the Chair expressed deep appreciation to the outgoing BOG

Chair, Dr. Yuba Raj Khatiwada, Governor of Nepal Rastra Bank (NRB), for his effective

leadership and commitment during his term as Chair of the SEACEN BOG and Executive

Committee (EXCO) for the Financial Year (FY) 2014.

Adoption of Provisional Agenda

5. The Chair proposed and the BOG adopted the Provisional Agenda without

amendment.


Agenda Item II: Admission of the Hong Kong Monetary Authority (HKMA) as SEACEN

Twentieth Regular Member

6. On behalf of the SEACEN BOG, the Chair welcomed the HKMA as the 20th Regular

Member of SEACEN with effect from 1 November 2014 on the same terms applicable to all

existing SEACEN regular member banks. Mr. Eddie Yue, Deputy Chief Executive of the

HKMA expressed deep appreciation to the SEACEN BOG for the unanimous approval and

the privilege of joining SEACEN and looked forward to close collaboration to enhance the

scope of regional cooperation on economic and financial matters that will be mutually

beneficial to SEACEN member banks.

Agenda Item III: Adoption of the Minutes of the Thirty-Third SEACEN BOG Meeting

7. The Minutes of the Thirty-Third SEACEN BOG Meeting held in Kathmandu, Nepal

on 22 November 2013 was adopted without amendment.

Agenda Item IV: Matters Arising

8. The BOG noted that matters arising from the Thirty-Fourth SEACEN BOG Meeting

would be taken up in subsequent agenda items.

Agenda Item V: Report on SEACEN Trust Fund Activities for FY 2014

9. The BOG noted the SEACEN Trust Fund (STF) activities undertaken during FY

2014. Details on the activities are presented in Attachment 2.

10. The BOG was informed that four member central banks, namely the National Bank

of Cambodia; Bank of the Lao, PDR; Central Bank of Myanmar; and NRB, will be eligible for

scholarships under the STF in 2015. Eligibility for STF scholarships was based on SEACEN

member central banks from economies that register a Gross National Income (GNI) per

capita of less than the World Bank’s income threshold of USD1,215 for financial year 2015

were eligible for scholarships. With a total of 32 STF scholarships available for allocation in

2015, each of the eligible central bank will be awarded with eight scholarships. The State

Bank of Vietnam, having registered an income level higher than the World Bank’s income


threshold for three consecutive years, has graduated from an STF scholarship recipient

central bank in 2014 to a SEACEN Additional Scholarship (SAS) contributor in 2015.

Agenda Item VI: Report by the SEACEN Executive Committee (EXCO)

11. The BOG noted that the EXCO had reviewed the implementation of strategic

initiatives and program of activities of SEACEN for FY 2014:

Formulation of Strategic Business Plan (2015 – 2017) (The Plan): SEACEN had

revised the Plan to be aligned with the proposal of the Remuneration Committee

(RC) on the organization structure.

SEACEN Financial Stability Journal (the Journal): SEACEN had lodged the

second and third volumes of the Journal in April and November of 2014. SEACEN

has made efforts to expand readership of the Journal.

SEACEN Supervisory Discussion Room (SSDR): SEACEN had conducted two

SSDR sessions in 2014 – June and Septermber which were participated in by

officials from 10 and 16 member banks respectively.

SEACEN Cyber Security Summit 2014 (Summit): SEACEN had implemented the

Summit with the theme “Demystifying Cyber Risk: Evolving Regulatory

Expectations” with a faculty comprising Deputy Governors and internationally

renowned experts, and over 50 delegates in attendance. The BOG noted that the

EXCO has encouraged SEACEN to continue seeking potential topics that can raise

awareness and infuse best practices in central banking in the likes of the Summit.

The BOG stressed that SEACEN should consider going beyond just implementing

the Summit to include a platform for member banks to discourse and exchange

ideas on the effects on cyber security threats on member banks’ payment and

settlement systems. The Meeting noted that SEACEN may go further to voice its

views on some key emerging issues, building on some of its good meeting program

initiatives such as the Cyber Security Summit. For example, when the BIS

Committee on Payments and Market Infrastructures (CPMI)’s guidance regarding

financial market infrastructures (FMIs)’ resilience to cyber attacks was released,

SEACEN could offer its response.


ASEAN Financial Integration Framework: SEACEN had implemented six

customized learning programs in FY 2014 and identified 11 learning programs for

FY 2015 to address the learning needs of ASEAN newer members, namely Brunei

Darussalam; Cambodia; Lao, PDR; Myanmar; and Vietnam.

12. The BOG noted the progress on the 15 learning programs; two research projects,

where two out of four workshops have already been implemented; the High-Level Seminar

on “Global Liquidity and Impact of Capital Flows on Exchange Rates in Emerging Asia”; the

publication of seven working papers; and, the conduct of five high-level meetings (held back-

to-back with High-Level Seminars) and the rescheduling of the Seminar on Central Bank

Governance to 11 – 13 February 2015 due to the non-availability of key resource speakers.

SEACEN and the Center for Latin American Monetary Studies (CEMLA) had agreed that the

IV CEMLA-SEACEN Conference, which was initially rescheduled from November 2014 to

February 2015, will be put on hold until further notice. The BOG emphasised that SEACEN

and CEMLA should not lose the opportunity to promote cross-regional interaction between

member banks of the SEACEN and CEMLA regions and address issues and challenges in

continuing with the joint conference initiative. SEACEN will explore other possible initiatives

of mutual interest with CEMLA. The BOG also noted that the remaining approved programs

for FY 2014 will be implemented as scheduled. SEACEN reported that preparatory work of

programs will commence much earlier to secure the availability of resource speakers.

13. The BOG noted the EXCO’s suggestion for SEACEN to continue improving the

content of learning programs, ensuring that coverage was topical and comprehensive. In

addition, some learning programs should also include, where appropriate, the integration of

the three pillars of central banking.

14. The BOG agreed with the EXCO’s suggestion for SEACEN to provide qualitative

and quantitative indicators when reporting on the learning and research program evaluation.

While the BOG commended SEACEN on the publication of the research working papers,

SEACEN should consider publishing the papers internationally to improve international

recognition. As an example, the BOG suggested that SEACEN should track the number of

downloads and hits and report the results to the EXCO and BOG as an indication of the

relevance and use of the research output.

15. The BOG noted that the EXCO had reviewed and considered the budget utilization

for FY 2014. The total estimated expenditure incurred for FY 2014 of RM10,178,041, which

was based on the actual expenditure for the first nine months ended 30 September and


estimated expenditure for the three remaining months ending 31 December 2014, remained

well within the approved budget of RM11,665,300, at 87.3 per cent. The unutilized portion of

12.7 per cent of the approved budget was mainly due to the rescheduling of the Seminar on

Central Bank Governance to 2015; putting on hold of the IV CEMLA-SEACEN Conference;

filling up the vacant Senior Manager position only in July 2014; the vacant Senior Economist

position which would not be filled in 2014; and, the write-back of overprovision of accruals for

FY 2013.

16. The BOG reiterated the EXCO’s recommendation for SEACEN to review the need

for ceremonial events (eg. opening and closing ceremonies) during SEACEN learning

programs, to minimise travel-related expenditure. SEACEN emphasized the need for the

Executive Director to deliver the opening remarks during the opening ceremonies to set the

context for the programs as well as to represent SEACEN when senior officials of host banks

are present at the ceremonies.

17. The BOG also reiterated the EXCO’s recommendation for SEACEN to be prudent

with overseas travel which had exceeded the approved budget in FY 2014.

b) Matters for Approval

i) Proposed Remuneration Scheme and Three-Year Strategic Business Plan

2015 – 2017

Proposed Remuneration Scheme

18. (minutes on the proposed remuneration scheme will be in a separate document)

Proposed Three-Year Strategic Business Plan 2015 – 2017 (the Plan)

19. The BOG noted that based on the EXCO’s comments, SEACEN had reformulated

the Plan with clear road map and milestones, to be aligned with the RC’s proposal on the

revised organization structure of SEACEN. The Plan focused on broad strategies, namely to

enhance the SEACEN brand; greater emphasise on higher quality learning solutions and

research output; provide additional services and develop a robust talent management

framework.


20 The BOG approved the setting up of an EXCO Ad-Hoc Advisory Committee to

advise and guide the new Executive Director on the transition to implement the new

organization structure and remuneration scheme. To avoid any further delay, the BOG also

approved the provisional Plan on the basis that the new Executive Director be given the

opportunity to contribute insights and re-shape the Plan together with SEACEN’s new

management, emphasizing that no newly proposed strategic initiatives with long-term

implications beyond 2015, should be implemented in 2015 particularly freezing the

employment of new staff. This review should include how SEACEN employees in mission-

critical positions should contribute to both training and research. The new management’s

proposed enhancements, if any, should be submitted to EXCO for consideration and

recommendation to the BOG for approval.

ii) Establishment of EXCO Task Force on SEACEN Funding Model

21. The BOG approved the establishment of an eight-member EXCO Task Force (the

Task Force) to review the SEACEN funding model, and identify the most appropriate model

and its implications on the governance practices of SEACEN. The Task Force, which will be

chaired by the EXCO member from BPNG, is comprised of EXCO members from Autoriti

Monetari Brunei Darussalam (AMBD); People’s Bank of China (PBOC); Bank Indonesia (BI);

Bank of Korea (BOK); Bank Negara Malaysia (BNM); NRB; Bangko Sentral ng Pilipinas

(BSP); and, Monetary Authority of Singapore (MAS). SEACEN will perform the secretariat

role for the Task Force. The BOG noted that SEACEN has conducted a preliminary study in

identifying five possible funding models, which could be a good starting point for the EXCO

Task Force’s review. The BOG noted that while SEACEN had presented some options in a

preliminary paper without making any specific recommendations, the EXCO Task Force’s

review need not be restricted to the options laid out in this paper. The Task Force is

expected to propose the most appropriate model by June 2015 and submit to the full EXCO

for consideration at the EXCO meeting, and EXCO’s recommendation for the final decision

at the BOG meeting in 2015. It was suggested that the use of e-mail exchanges and web-

conferencing be maximized to avoid frequent travels, as well as leverage on having back-to-

back meetings for necessary face-to-face engagement. The BSP, as the next Chair of BOG

and EXCO, offered to host the final meeting of the Task Force, subject to approval from their

Bank’s management.

iii) Proposed Recruitment Process for Executive Director Position


22. The BOG noted that the three-year term of the Executive Director (ED) of SEACEN

will expire on 30 June 2015 and as the recruitment for the ED position was closely linked to

the proposed organization structure and remuneration scheme which were presented by the

RC, the recruitment process had only commenced in October 2014. The BOG noted the

three options for the composition of an EXCO Interview Committee (EIC) and approved the

EXCO’s recommendation to establish a seven-member EIC to be headed by the EXCO

Chair. The BOG also approved the appointment of EXCO members from NRB, BPNG and

BSP as the Troika (past, present and future Chairs) and four founding members, namely BI,

BNM, Central Bank of Sri Lanka (CBSL) and Bank of Thailand (BOT), as members of the

EIC. The interviews will be conducted in Kuala Lumpur and SEACEN will perform the

secretariat role for the interviews.

23. The BOG noted that all the EXCO members will assess all applications received

and submit their respective responses on the ranking of the candidates to the EXCO Chair.

From the compilation of the EXCO members’ responses, the three-highest ranked

candidates will be identified together with two others for the reserve list. The compiled results

will be submitted to the EXCO for consideration and endorsement.

24. The BOG also noted that in the event no suitable candidate is identified for the ED

position after the interviews, BNM has offered to cover the cost of an executive search

process by international Human Resources firms.

iv) Proposed Learning, Research and Meeting/Seminar Programs for FY 2015

25. The BOG approved the EXCO’s recommendation on the 22 learning programs to be

implemented in FY2015 comprising seven in the Macroeconomic and Monetary Policy

Management (MMPM) knowledge block; nine in Financial Stability and Supervision (FSS);

and three each in the Payment and Settlement Systems (PSS) and; Leadership and Central

Bank Governance (LDG) areas. In addition, three collaborative research projects together

with associated research workshops; an in-house research project; six high-level

seminars/conferences, of which two are high-level seminars based on topical themes; two

case studies; and seven high-level seminars held back-to-back with high-level meetings will

be implemented in 2015. High quality output from the research activities will be published

and uploaded in the SEACEN website.

Details of the programs for FY 2015 are highlighted in Attachment 3.


v) Proposed Budget for FY 2015

26. The BOG approved the EXCO’s recommendation on the proposed budget for FY

2015, subject to downward adjustment to the average merit payment from 2.5 months to 2

months and the removal of ex-gratia payment to SEACEN employees. The budget for

average merit payment in FY 2015 should remain the same as FY 2014 of 2 months and the

Executive Director will continue to have the flexibility to administer the allocation of merit

payment based on the outcome of the annual performance evaluation process. Furthermore,

as the new organization structure and remuneration scheme would apply from 2016

onwards, the budget then should reflect assumptions of about one month’s bonus (with a

range of zero to two months). The BOG also reiterated that moving forward, SEACEN should

present at the annual EXCO and BOG meetings, a thorough assessment of SEACEN’s

overall performance to justify the expected average merit payment for the year. On the

proposed ex-gratia payment, SEACEN reiterated that since the last salary review of

SEACEN in 2008, several SEACEN employees have already reached the ceiling of their

respective salary bands. In order to maintain morale and to retain good talent, SEACEN had

proposed monthly ex-gratia payment for employees who achieved 4 and above in their

performance assessment for FY 2014 and have already reached the ceiling of their

respective salary bands. On another note, the BOG was informed that ex-gratis payment

was not an industrial practice in Malaysia. The BOG rejected the SEACEN’s proposal for ex-

gratia payment and reiterated that it should first be presented to the EXCO with a proposal

paper before seeking the BOG’s approval.

Details of the budget for FY 2015 (after adjustments) are highlighted in Attachment 4.

vi) SEACEN Associate Membership Applications

27. The BOG approved the EXCO’s recommendation for the admission of five invitee

central banks/monetary authorities and the only observer central bank as SEACEN

Associate Members with effect from 1 January 2015. These include the Reserve Bank of

Australia; Bangladesh Bank; Royal Monetary Authority of Bhutan; Monetary Authority of

Macao; State Bank of Pakistan, and National Reserve Bank of Tonga. The BOG was

informed that Maldives Monetary Authority and Reserve Bank of New Zealand had declined

SEACEN’s offer for Associate Membership. The EXCO recommended the six central


banks/monetary authorities as Associate Members based on the assessment of their past

and potential involvement in SEACEN programs. An annual membership due of US$5,000

will be imposed on each Associate Member. The membership dues received will be

transferred to the SEACEN Trust Fund for utilization as scholarships to eligible regular

member banks. The BOG Chair will formally inform each of the six central banks/monetary

authorities of their acceptance as Associate Members after the BOG meeting.

vii) Annual Internal Audit of SEACEN

28. The BOG approved the EXCO’s recommendation for the conduct of an annual

internal audit of SEACEN by the internal auditors of BNM, as proposed by the SEACEN

Board of Directors (BOD). The objective of the annual audit was to provide assistance to

SEACEN to further improve its internal processes and ensure good governance practices.

The practice of an internal audit every two years can be reverted once the processes are in

place.

viii) Proposed Change in External Auditors

29. The BOG approved the EXCO’s recommendation for SEACEN to change its

external auditors every three years based on the same principle of good governance in

relation to the conduct of an annual internal audit. It was noted that S.J. Grant Thorton has

been the external auditor for SEACEN since 1989. SEACEN will conduct a review of the

selection of external auditors and propose to the BOD for approval at the next BOD meeting

in 2015.

c) Matters for Information

i) SEACEN-CEMLA Cross-Regional Collaboration

30. The BOG was informed that the Annual SEACEN-CEMLA Conference has been put

on hold until further notice. Besides, the non-availability of resource speakers, SEACEN and

CEMLA have observed the waning interest of SEACEN and CEMLA member central banks

in participating in the joint Conference as resource speakers and/or audience, and the main


factors are the long distance travel and high travel costs, especially if the Conference is held

in the other region. SEACEN has been in collaboration with CEMLA to promote cross-

regional collaboration among SEACEN and CEMLA member central banks since 2011 and

the jointly organized annual conference has been one of the key initiatives in this cross-

regional collaboration. Thus far, three joint annual conferences have already been

conducted. The IV CEMLA-SEACEN Conference, which was initially to be held in Colombia

on 6 and 7 November 2014, was rescheduled to February 2015 due mainly to the non-

availability of key resource speakers. Consequently, even with the rescheduling of the

Conference to February 2015, the availability of key resource speakers is still in question. On

that note, SEACEN and CEMLA have agreed to put the joint Conference on hold until further

notice. This stance however, would not diminish the continued inter-regional collaboration

between SEACEN and CEMLA. Besides the joint annual Conferences, SEACEN and

CEMLA will explore more feasible cross-regional collaboration such as joint research

projects on issues of common interest, moving forward. The BOG reiterated that SEACEN

and CEMLA should continue to leverage on the implementation of the joint conference and

address any issues and challenges encountered. The BOG also suggested the possibility of

conference venues mid-way between the two regions and be held back-to-back with

international meetings for governors.

ii) Business Class Air Travel for Resource Speakers

31. The BOG noted the EXCO’s approval for SEACEN to provide business class air

travel for all external resource speakers to deliver in SEACEN programs, to source and

attract the best resource speakers for SEACEN programs. SEACEN quoted a benchmark

with the Asian Development Bank and International Monetary Fund in a comparative study

conducted in 2010.

iii) Amendments to Terms and Conditions of Service – Inpatient Benefits for New

Employees

32. The BOG was informed that with effect from 1 April 2014, SEACEN had outsourced

the administration of the employee medical benefits under a Group Medical Plan (GMP) to

AIA Berhad. The move from SEACEN’s past self-insured practice to the GMP was to

address escalating medical expenditure in the long-run; streamline processes and rationalize

its internal human resources involved in administering employee medical benefits. In


migrating to the GMP, the BOG was informed that the principle that “No SEACEN employee

is worse-off” was upheld. Dental treatment and certain medical treatment for current

employees and their eligible dependents; and all the medical and dental treatment of retired

employees of SEACEN, which were not covered under the GMP, were still being

administered and self-insured by SEACEN. The implementation of the GMP has progressed

well and an annual review will be conducted to assess the effectiveness of the GMP

implementation.

33. The BOG also noted the EXCO’s approval in the revision of the Terms and

Condition of Service to limit the annual inpatient coverage of new employees of SEACEN

(who joined SEACEN after 19 September 2014) and their eligible dependents, up to the

respective inpatient limits imposed under the GMP. SEACEN will not cover any excess in the

annual limits for new employees and their dependents. In the case of existing employees

and their dependents, SEACEN will continue to provide coverage should their respective

annual inpatient limits be exceeded.

iv) Revised Accrual Policy and Procedural Manual

34. The BOG noted the EXCO’s approval of the revision to SEACEN’s Accrual Policy

and Procedural Manual (the Manual) to ensure that SEACEN’s accrual processes are

aligned to accounting standards. Key highlights of the revision included:

A key principle emphasized in the Manual was that all accruals should be settled

within the first three months of the next financial year, if any. Any outstanding

accrual after that period should be written back. In addition, no virement was

allowed for accruals.

In the case where an approved SEACEN program for the financial year had to be

rescheduled to the following year due to unforeseen circumstances, a fresh budget

would have to be prepared for the rescheduled program for the following year. In

the event this situation arose after the BOG’s approval had already been obtained

for the following year’s budget, a supplementary budget for the rescheduled

program would have to be submitted for EXCO’s endorsement and BOG’s approval

via circular resolution.

v) SEACEN Additional Scholarships


35. The BOG was informed that a total of 47 scholarships have been allocated among

the five eligible member banks in FY 2014, based on 32 scholarships under the SEACEN

Trust Fund scheme and 15 under the SEACEN Additional Scholarships (SAS) scheme. As of

end of October 2014, a total of 13 of the 15 SAS have been fully disbursed by the five

eligible member central banks, while the remaining two scholarships will be utilized by end of

the year.

36. The BOG approved the allocation of 20 scholarships under the SAS scheme for FY

2015. With the admission of HKMA as a SEACEN Regular Member on 1 November 2014

and the graduation of State Bank of Vietnam from a recipient member bank in FY 2014 to a

contributing one in FY 2015, the total number of scholarships under the SAS scheme for FY

2015 will be 17. Three additional scholarships will also be included into the pool so that all

four eligible member banks will receive a total of five scholarships each under the SAS

scheme in FY 2015. The three additional scholarships will be funded from the accumulated

balance of the SAS account which is managed by SEACEN.

vi) Approved Audited Accounts for FY2013

37. The BOG noted that the SEACEN BOD had approved the audited accounts for the

Financial Year ended 31 December 2013 at the 32nd Annual General Meeting (AGM) which

was held on 17 June 2014. SEACEN’s total expenditure for FY 2013 amounted to

RM9,210,538, which was 82.1 per cent of the approved budget of RM11,220,300. After

adjusting for interest earned and other income totalling RM222,557, the net expenditure

amounted to RM8,987,981. Based on the agreed equal cost sharing formula of net

expenditure, each member central bank’s contribution was RM473,052. All member central

banks had already settled their respective contribution.

Agenda Item VII: Other Matters

38. No other matters were raised.


Agenda Item VIII: Date and Venue of the 51st SEACEN BOG’s Conference and 35th

Meeting of SEACEN BOG

39. The BOG accepted the offer made by Deputy Governor Diwa C. Guinigundo on

behalf of Mr. Amando Tetangco, Jr., Governor of BSP to host the 35th Meeting of the

SEACEN Board of Governors and 51st SEACEN Governors’ Conference from 25 – 27

November 2015. BSP will notify the BOG on the venue and theme of the Conference in due

course.

Expression of Appreciation

40. The BOG Chair thanked all SEACEN Governors, delegates, and The SEACEN

Centre for their contribution to the successful conclusion of the 34th SEACEN BOG Meeting.

On behalf of the Governors and Heads of delegations from SEACEN member banks, Deputy

Governor Diwa C. Guinigundo, of the BSP expressed his deep appreciation to the BOG

Chair for the excellent arrangements and warm hospitality of BPNG in hosting the BOG

Conference and Meeting. He also thanked the Secretariat team for their untiring efforts in

ensuring a comfortable and memorable stay for all the delegates. On behalf of BSP

Governor Amando M. Tetangco, Jr., Deputy Governor Guinigundo extended his welcome to

all SEACEN Governors and delegates to the Philippines for the SEACEN 35th BOG Meeting

in 2015.

The SEACEN Centre

14th January 2015


Attachment 1

List of Delegates

Autoriti Monetari Brunei Darussalam

1. Yusof Abd. Rahman Managing Director

2. Sufinah Sahat Executive Director

3. Sri Joedianna Mohammed Senior Manager

4. Redhuan Rajak Economist

National Bank of Cambodia

5. Chea Chanto Governor

6. Sum Sannisith Assistant Governor/Secretary General

7. Kith Sovannarith Director

8. Meng Vety Economist

People’s Bank of China

9. Zhou Xiaochuan Governor

10. He Jianxiong Director General

11. Yang Jiehan

Deputy Director


Reserve Bank of Fiji

12. Barry Trevor Whiteside Governor

13. Savaira Manoa Manager – Statistics

Hong Kong Monetary Authority

14. Eddie Yue Deputy Chief Executive

15. Leon So Manager

Reserve Bank of India

16. Deepak Kumar Mohanty Executive Director

Bank Indonesia

17. Perry Warjiyo Deputy Governor

18. Erwin Rijanto Slamet Executive Director

19. Erwin Haryono Director

20. Dicky Kartikoyono Director

Bank of Korea

21. Byung Wha Jang Senior Deputy Governor

22. Seung Je Hong Director General

23. Seung Ho Baek Team Leader


24. Jinhee Kim

Economist

25. Yong Hyuck Kim Jnr Economist

Bank of the Lao PDR

26. Phetsathaphone Keovongvichith Assistant Director General

27. Daomanivone Vilayvieng

Director

Bank Negara Malaysia

28. Sukhdave Singh Deputy Governor

29. Marzunisham Omar Assistant Governor

30. Nazrul Hisyam Mohd Noh Director

31. Intan Shahira Bt. Mohd Shahru Deputy Director

32. William Ben Philip Associate Analyst

Bank of Mongolia

Absent with Apologies

Central Bank of Myanmar

33. Kyaw Kyaw Maung Governor

34. Thet Thet Hla Director


Nepal Rastra Bank

35. Yuba Raj Khatiwada

Governor

36. Bhagawat Acharya Assistant Director

Bank of Papua New Guinea

37. Loi Bakani Chair, SEACEN Board of Governors and Governor

38. Benny Popoitai Deputy Governor

39. Gae Kauzi Assistant Governor

Bangko Sentral ng Pilipinas

40. Diwa C. Guinigundo Deputy Governor

41. Dennis Gamaya Bank Officer

Monetary Authority of Singapore

42. Jacqueline Loh Deputy Managing Director

43. Foo Suan Yong Deputy Director


Central Bank of Sri Lanka

44. P Nandalal Weerasinghe Deputy Governor

45. Kalyanee Gunatilake Director

46. Rupasingha AS Gunaratne Director

47. Chandranath Amarasekara Deputy Director

48. Harischandra PK Gedara Deputy Director

Central Bank, Chinese Taipei

49. Tzung-Ta Yen

Deputy Governor

50. Tzong-Yau Lin Director General

51. Yen-Dar Den

Assistant Director General

52. Te-Ming Peng Assistant Director General

Bank of Thailand

53. Prasarn Trairatvorakul Governor

54. Alisara Mahasandana Executive Director

55. Suchada Dejtrakul Division Chief


State Bank of Vietnam

56. Nguyen Toan Thang Deputy Governor

57. Nguyen Thi Hoa Principal Official

58. Hoang Thi Phuong Hahn Deputy Director General

59. Dao Xuan Deputy Director General

60. Le Thai Nam Deputy Director General

The SEACEN Centre

61. Hookyu Rhu Executive Director

62. Dongkoo Chang Director

63. Noppadol Buranathanung Director

64. Michael Zamorski

Adviser

65. Hans Genberg Adviser

66. Brian Nunis Deputy Director

67. Choon Seng Lim, Vincent

Senior Economist

68. Leng Choo Ong, Vivien Manager

Attachment 2


STF Activities during Financial Year 2014 (1 January to 31 December 2014)

1. The Fund’s average portfolio yield increased by 12 basis points to 4.45% as at end-

September 2014, compared with 4.33% as at end-December 2013. This was due to a

higher reinvestment rate and lower cash holdings.

2. For the nine-month period ending 30 September 2014, a temporary deficit of

RM2,391 was recorded given the lumpy and front-loaded expenditure against the income

received during the period. However, with the expected receipt of contribution from the

SEACEN Centre derived from the course fees paid by non-members attending courses and

the investment income in the final quarter of 2014, the STF is projected to record a surplus of

RM66,324 at the end of 2014. With this, the size of the STF is expected to increase

marginally to RM3.84 million for the financial year ending 31 December 2014 (end-2013:

RM3.78 million).

3. On the STF scholarships, 31 scholarships have been disbursed, while the remaining

one scholarship will be provided by the end of November 2014.

Proposed Operating Plan for Financial Year 2015(1 January to 31 December 2015)

4. The Board of Trustees approved the Operating Plan for the Financial Year 2015.

5. On the investment strategies, the following have been agreed upon:

For 2015, the Fund is expected to maintain low cash holdings in order to

maximise investments and enhance returns;

RM400,000 will be targeted for reinvestment inmedium-tenor (5-10 years)

bonds at atargeted average investment yield of 4.2%; and

The remaining cash holdings will continue to be placed in short-term deposits

and forthe disbursement of scholarships.

6. On the STF scholarships, the Trustees have agreed for a total of 32 scholarships to

be distributed during 2015. This is based on the STF action plans which were approved in

2012, namely to utilise 80% of the STF investment income in addition to using the course

fees derived from non-SEACEN members. The maximum value of each STF scholarship is

USD2,200.


7. Four member central banks, namely the National Bank of Cambodia, Bank of the

Lao PDR, Central Bank of Myanmar and Nepal Rastra Bank, will be eligible for the

scholarships. The guiding principle for the specific allocation of scholarships is for the total

number of scholarships to be distributed equitably. Therefore, eight STF scholarships are

awarded to each eligible central bank. The eligibility is based on the World Bank’s income

threshold of USD1,215 for financial year 2015. Also, eligibility has been considered based

on allowing an STF scholarship recipient central bank to graduate from the STF resources

when its economy consistently registers income levels that are higher than the World Bank’s

income threshold for three consecutive years.

8. In line with the above, the State Bank of Vietnam will not receive STF scholarships

in 2015 given that its economy has consistently registered a GNI per capita higher than the

World Bank’s income threshold for three consecutive years.

9. The summary on the investment strategiesand the distribution of the STF

scholarshipsissubmitted for the information of the Board of Governors.

STF Secretariat SEACEN Trust Fund 21 November 2014

Attachment 3

SUMMARY OF APPROVED PROGRAMS FOR FINANCIAL YEAR (FY) 2015 JANUARY – DECEMBER 2015

A. LEARNING PROGRAMS

I. MACROECONOMIC & MONETARY POLICY MANAGEMENT (MMPM)

Code Title Proposed Dates Proposed Host Venue

MP1 SEACEN Course on Analytics of Macroeconomic and Monetary Policy Management

12 – 24 April Autoriti Monetari Brunei Darussalam

Brunei

MP2 SEACEN Foundational Course on Econometric Modeling and Forecasting

11 – 16 January National Bank of Cambodia

Cambodia

MP3 SEACEN Intermediate Course on Econometric Modeling and Forecasting

27 September – 2 October Bangko Sentral ng Pilipinas

Philippines

MP4 SEACEN Course on Monetary Policy Transmission Mechanisms: Theory and Empirical Assessment

23 – 28 August Bank Indonesia Indonesia

MP5 SEACEN Course on External Sector Issues

18 – 30 October Central Bank of Sri Lanka Sri Lanka

MP6 SEACEN Course on Market Intelligence Primer for Policy Making

7 – 12 June Bank of Mongolia Mongolia

MP7 SEACEN Course on Coordination of Monetary and Macro-prudential Policies for Macroeconomic and Financial Stability (Signature Program)

6 - 11 December SEACEN Sasana Kijang, Kuala Lumpur

II. FINANCIAL STABILITY AND SUPERVISION (FSS)


FS1 SEACEN Course on Bank Examiner Foundational Skills Development 1 – 13 March SEACEN Sasana Kijang, Kuala Lumpur

FS2 SEACEN Intermediate Course on Bank Examination

22 November – 2 December

SEACEN Sasana Kijang, Kuala Lumpur

FS3 SEACEN Course on System Stress Testing in Supervision and Risk Management

16 – 19 March Bank of Thailand Thailand

FS4 SEACEN Course on Recovery and Resolution Planning for Weak Banks

19 – 24 April National Bank of Cambodia

Cambodia

FS5 SEACEN Course on Enterprise Wide Risk Management of Banks

3 - 8 May Bank Indonesia Indonesia

FS6 SEACEN Seminar on Liquidity Risk Management and Supervision

1 – 6 November Central Bank, Chinese Taipei

Chinese Taipei

FS7 2nd SEACEN Cyber Security Summit (Signature Program)

27 – 28 July SEACEN Sasana Kijang, Kuala Lumpur

FS8 SEACEN Course on Cross Border Risk-Based Supervision

18 – 23 October Nepal Rastra Bank Nepal

FS9 SEACEN Course on Macro-prudential Policy Implementation (Signature Program)

20 - 25 September Bank of Korea Korea

III. PAYMENT AND SETTLEMENT SYSTEMS (PSS)


PS1 10th SEACEN Intermediate Course on Payment and Settlement Systems for Emerging Economies

26 – 30 April Monetary Authority of Singapore

Singapore

PS2 SEACEN Course on Oversight of Payment and Settlement Systems

23 – 27 March State Bank of Vietnam Vietnam

PS3 SEACEN Advanced Course on Payment and Settlement Systems for Emerging Economies (Signature Program) (back-to-back with Directors of Payment and Settlement Systems Meeting)

24 – 29 May Reserve Bank of India India

IV. LEADERSHIP AND GOVERNANCE (LDG)


LDG1 9th SEACEN Intermediate Leadership Course

10 - 15 May Bank of Korea Korea

LDG2 9th SEACEN Advanced Leadership Course (Signature Program)

14 – 19 June SEACEN Sasana Kijang, Kuala Lumpur

LDG3 SEACEN Seminar on Central Bank Governance (Signature Program) - rescheduled from FY 2014

11 – 13 February Bank Indonesia Indonesia

LDG4 SEACEN Seminar on Risk Management for Central Bank (Signature Program)

8 - 13 November SEACEN Sasana Kijang, Kuala Lumpur

B. APPROVED RESEARCH PROGRAMS

COLLABORATIVE RESEARCH Proposed Dates Proposed Host Venue

Code Topic

R1 Monetary Policy Transmission in the SEACEN Economies (2 workshops)

March and August SEACEN Malaysia

R2 Research Project for Capital Flows Research Group under the SEACEN Expert Groups on Capital Flows (SEG) (1~2 workshops)

April and October SEACEN (tbc) tbc

R3 Customized Research Project (1 workshop) March/April SEACEN Sasana Kijang, Kuala Lumpur

I. HIGH-LEVEL SEMINARS Proposed Dates Proposed Host Venue

Code Topic

S1 Harmonizing Micro-prudential Policies and Macro-prudential Supervision

October Bank Indonesia Indonesia

S2 Just-in-Time (held back-to-back with DORT Meeting)

19 – 21 August Reserve Bank of Fiji Fiji

S3 11th SEG High-Level Seminar( held back-to-back with 11th SEG Meeting)

29 - 31 July SEACEN (tbc) Malaysia

S4 High-Level Seminars (held back-to-back with EXCO meeting) 28 – 30 September Bank of Papua New Guinea

Papua New Guinea

S5 High-Level Seminars (held back-to-back with BOG meeting)

(tbc) To be determined To be determined

n.a. Joint Annual Conference by SEACEN and CEMLA (Put on hold until further notice)

n.a. n.a. n.a.

II. ONLINE FORUM

Code Topic

F1 2 Research online forums with SEG

F2 3 – 4 SEACEN Supervisory Discussion Room (SSDR)

III. DISSEMINATION AND PUBLICATIONS

Code Types

1 3 Publications from 2 High-Level Seminars/Conferences and Research Project

2 3-5 Working Papers

3 2 SEG Reports

4 3 Background Papers for High-level Meetings (subject to request)

5 2 Volumes of SEACEN Financial Stability Journal

6 2 case studies/ notes

C. MEETING PROGRAMS (back-to-back with High-Level Seminars)


M1 28th Meeting of Directors of Supervision

5 – 7 Aug Bank of Thailand Thailand

M2 14th Meeting of SEACEN Directors of Payment and Settlement Systems

27 – 29 May Reserve Bank of India

India

M3 37th Meeting of SEACEN Directors of Research and Training (back-to-back with DOR and DOT Seminars)

19 – 21 August

Reserve Bank of Fiji Fiji

M4 6th Meeting of Deputy Governors in charge of Financial Stability and Banking Supervision (back-to-back with High-Level Seminar on Financial Stability)

10 – 12 September Nepal Rastra Bank Nepal

M5 14th Meeting of SEACEN Executive Committee (back-to-back with high-level seminar)

1 – 3 October (tbc) Bank of Papua New Guinea

Papua New Guinea

M6 51st SEACEN Governors’ Conference/High-Level Seminar and 34th Meeting of SEACEN Board of Governors

25 – 27 November To be determined To be determined

M7 11th SEG Meeting (back-to-back with 11th High Level Seminar and workshop)

29 – 31 July SEACEN (tbc) Malaysia

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