Second, even if we could implement these measures, they would not result in sustainable growth, because it is potential growth rates that are currently low – about 1.5–2%, according to our estimates – following structural restrictions. Third, many structural reforms directly impact the way we will move to our inflation target. For example, with better competition or tighter regulation of natural monopolies’ tariffs, we may avoid triggering inflationary pressure while cutting rates more dramatically. Monetary and fiscal policy may ensure macroeconomic stability, but it is insufficient for sustainable economic growth. The most important structural reform is improvement of business climate, primarily measures to promote competition, deregulate the economy, reduce the share of state-owned and state-controlled companies, and protect property rights and minority shareholders. The quality of business climate is the reason for insufficiently developed equity financing and capital market in our country. Let me remind you that by debt burden Russia is in the upper range in the list of peer countries, but lags considerably behind them in terms of capitalisation. If corporate governance and protection of minority shareholders’ interests are challenged, shares of such companies will be hardly sold. The fact that our companies earn profits but abstain from investing them in their own business comes from macroeconomic uncertainty, including tax regime, while investments in other businesses, including through financial mediators, are constrained by high risks arising not only from the vague prospects of these business projects, but also poor protection of such interests.

Allow me to express our utmost gratitude to His Majesty Seri Paduka Baginda Yang di-Pertuan Agong and Her Majesty, and His Royal Highness Sultan of Perak Darul Ridzuan, the Royal Patron of Malaysia International Islamic Financial Centre (MIFC) and Her Royal Highness, for gracing tonight’s Gala Dinner. Our sincere appreciation to Securities Commission Malaysia, for jointly hosting this dinner with Bank Negara Malaysia, under the Malaysia International Islamic Financial Centre (MIFC) initiative. Since the introduction of the Royal Award for Islamic Finance (RAIF) in 2010 as a biennial event, it has given due recognition to three individuals. Tonight, another individual will be awarded the 2016 RAIF, for outstanding contributions in the development of Islamic finance. The Islamic finance industry has continued to gain strength and stature, recording robust global growth of between 10 to 12 percent annually over the past decade. Amidst a highly challenging global economic environment, the growth reflects the steady advancement and maturity of the industry in meeting the needs of the economy. As we progress into the new era of growth, our endeavour to enhance the vibrancy of the industry warrants a new way of thinking in the face of increasing competition and profound changes brought about by technological advancements. In facing these challenges successfully, one of the prerequisites is a pool of talent that is dynamic, adaptable and visionary. 1/3  BIS central bankers' speeches  In Malaysia, we have invested substantially in cultivating talents equipped with the required skill sets and knowledge needed to compete, to think and to innovate.