The first phase of the development of Islamic finance in Malaysia began more than three decades ago with the establishment of an Islamic savings institution known as the Pilgrim Fund Board, or Tabung Haji. Tabung Haji is the first Islamic financial institution in Malaysia. This was followed by the establishment of the first full-fledged Islamic bank in 1983 and the first takaful operator in 1984. The establishment of the first takaful operator in Malaysia was inspired by the prevailing needs of the Muslim public for a Shariah-compliant alternative to conventional insurance, as well as to complement the operation of the Islamic bank. InsyaAllah, by the end of this year we will have a complement of twelve (12) Islamic banks and nine (9) takaful operators with equity participation by Malaysians as well as renowned international market players. 10. In the second phase of the development of Islamic finance, Malaysia initiated the development of a private Islamic financial securities market. The issuance of a broad range of Islamic financial instruments contributed in creating a more conducive investment environment for investors who preferred Shariah-compliant instruments. Another significant development in the domestic Islamic financial market was the issuance of ringgit-denominated Islamic debt securities by two multilateral financial institutions, the International Finance Corporation and the World Bank. The issuance was made possible following the liberalisation of the foreign exchange administration rules to facilitate multilateral development banks, multilateral financial institutions and multinational corporations to raise ringgit-denominated bonds in the Malaysian capital market.

Most recently, a $ million donation  BIS central bankers’ speeches  1  was made by the family of the late Mr Ng Teng Fong to set up a fund for needy patients and other worthy causes at a new hospital in Singapore. To encourage more giving, the Singapore Government has created a very conducive giving environment in Singapore. We allow 2.5 times tax deduction for donations to Institutions of a Public Character. We have also increased the leverage effect of donations, with matching grants for donations to key causes such as universities and charities providing long term care for the elderly. Asian philanthropy is evolving 9. Asian philanthropy has deep roots, both in tradition and religion. Giving across Asia is typically accomplished without fanfare, with many donors quietly donating millions on an anonymous basis. There is a tendency to prize modesty, and many are averse to what others may view as “flaunting wealth”. However, such private giving may have held us back from developing a more structured and sustainable way of giving. 10. This is changing, as Asian donors have observed that Western philanthropy has developed innovative structures which may be very efficient and effective. More and more, we are seeing the evolution of Asian philanthropy from ad hoc cheque book donations to more sophisticated philanthropic models such as foundations and venture philanthropy. This has helped to bring about greater accountability and efficiency in grant making. 11. Another change is the shift from the traditional model of leaving behind legacies, towards “giving while living”.