Khazanah Global Lectures - Professor Muhammad Yunus
                                                

Welcoming Speech


by
Tan Sri Nor Mohamed Yakcop
Minister of Finance II

KL HILTON HOTEL
15TH AUGUST 2007
                                         

Yang Amat Berbahagia Tun Dr Mahathir Mohamad

Yang Amat Berbahagia Tun Dr Siti Hasmah Mohd Ali

Yang Amat Berbahagia Tun Musa Hitam

Professor Dr. Muhammad Yunus

Datuk Mustapa Mohamed, Minister of Higher Education

Datuk Seri Abdul Aziz Shamsudin, Minister of Rural and Regional Development

Tan Sri Dr Zeti Akhtar Aziz, Governor Bank Negara Malaysia 

Datuk Azman Mokhtar, Managing Director, Khazanah Nasional

Datuk Seri Zubir Murshid, Managing Director Sime Darby Berhad

Tan Sri-Tan Sri, Datuk-datuk, Datin-datin,

 Ladies and Gentlemen

Assalamualaikum & Good Evening

1. It is an honour on behalf of Khazanah Nasional,  to welcome all the distinguished guests assembled here tonight to the second lecture in the Khazanah Global Lecture series. These lectures are part of Khazanah's contribution to the celebrations of Malaysia's 50th year of independence. I am happy to note that various GLCs are also sponsoring this event.

2. The theme for the lecture series is "development". As we celebrate our 50th year of Independence, we need to reflect on who we are and what we have become, on how we have lived together, how Malaysia has developed and where we are in the global community of nations. We need to look at development from the perspectives of people, society, the economy and the international dimension. This is among the objectives of the Khazanah's lecture series.

Ladies & Gentlemen,

3. I would like to tell a story. There was this man, John, who needed a heart transplant urgently. The first heart available was that of an athlete. John refused the heart since an athlete's heart is always pumping, and very well used. The second heart available was that of a beautiful Hollywood actress. John turned down this heart as well, since  a Hollywood actress would have fallen in and out of love so many times that her heart would have worn out. The third heart available was that of a banker. John immediately accepted the heart on the grounds that the heart would be as good as new, since a banker never uses his heart.

4. However, we know that many bankers do indeed use their heart, and in Malaysia they certainly do. And we have with us today a famous banker who has combined his heart and his head most optimally. I would like to welcome the distinguished speaker for this evening's lecture - Professor Muhammad Yunus, the founder of Grameen Bank and the 2006 Nobel Peace Prize Winner.

5. All of us have heard about The Grameen Bank, which Professor Yunus started in 1976 with a total loan of US$27 given to 42 self-employed craft workers. The rest, as they say, is history. Grameen is the Bengali word for "rural" and Professor Yunus predicated his bank on the proposition that the millions of rural poor in Bangladesh with their millions of small pursuits can develop the rural economy on a huge scale. These millions of poor people with millions of small pursuits need small credit to realise their dreams.

6. Thus began the Yunus' concept of microcredit-small loans to poor villagers in Bangladesh to help them buy livestock or fund an enterprise. Today, the loan assets of Grameen Bank, have grown from US$27 Yunus loaned out of his own pocket into more than US$5.7 billion, and the 42 original borrowers have grown to 6.61 million borrowers. Despite lack of collateral or signed loan documents, 99 percent of the loans have been paid back. That over 95 percent of the borrowers are women may or may not have something to do with that low NPL! Personally, I think it has something to do with the low NPL, but it may not be politically correct for me to say that too loudly to a mixed audience such as this. The Grameen Bank today provides services in more than 71,000 villages in Bangladesh through 2,226 branches.

7. The achievement of the Grameen Bank, is remarkable by any standard. And Professor Muhammad Yunus has become a legend in his own lifetime.

8. The micro-credit scheme implemented by Professor Muhammad Yunus has enabled large groups of Bangladeshis to break out from the poverty trap. This development has served to also empower the masses and advance the cause of freedom in its many manifestations.

9. An important lesson that we have learnt from Professor Muhammad Yunus is that one man can make a difference, that every man must take responsibility to improve the quality of life of the community he lives in. We have today also with us another example of one man making a difference. That is Tun Dr Mahathir Mohamad, who changed the face of Malaysia during his 22 years of premiership from 1981 to 2003.

Distinguised Guests, Ladies and Gentlemen,
 
10. The world needs more individuals like Muhammad Yunus. And, we have him here tonight. We will hear from him after dinner.

Thank you and bona petit.

Ministry of Finance
Putrajaya
Aug 15 2007