It is this substantive advancement in Islamic finance that we believe greater business and investment ties could be built upon to enhance economic relationship between Turkey and Malaysia. Turkey-Malaysia vast growth opportunities For Turkey and Malaysia, a productive partnership could be created when both parties are able to harness the strengths of each other. Turkey is Malaysia’s eighth largest trading partner among the OIC member countries, has had a significant growth in terms of its trade with Malaysia, which has expanded at an annual average rate of 22.4 percent since 2006. While the volume of trade and investment between the two countries is still relatively small, where Malaysia’s trade with Turkey accounts for 0.3 percent of Malaysia’s total trade and Malaysia’s investment in Turkey totalled to USD56.2 million as at end-2010, the figures also reflect the enormous opportunity for further growth. Turkey’s Prime Minister The Honourable Recep Tayyip Erdoğan, during the recent visit by the Malaysian Prime Minister to Turkey, has suggested a leadership aspiration for trade volume between Malaysia and Turkey to grow from USD1.3 billion to USD5 billion. With commitment and hard work, this target is certainly not impossible to achieve. I believe with a Strategic Framework Agreement that is planned to be signed later this year between our two Governments would further strengthen cooperation between the two through identification of important areas where we could focus and work on. Opportunity to enhance trade and financial linkages between Turkey and Malaysia is immense.

There is also the opportunity to list the sukuk on Bursa Malaysia, the Malaysian bourse, which has emerged as the largest exchange for sukuk listing in the world. This gives the listed sukuks greater profiling, visibility and transparency in the global bond market. Collaboration in issuance of sukuk would indeed benefit Turkey, as Turkey’s aggressive diversification of its industrial base and services sectors will require huge financing needs that could be partially met through the Islamic financial markets. Large infrastructure projects such as building the Bosphorus shipping canal, the new railway lines and highways might require funding via issuing sovereign sukuk as an alternative source of funding. The extensive privatisation in basic industry –transportation, communication and banking – would also offer the corporates and alternative source of financing that is competitive and innovative. Secondly, in promoting cross-border financial activities, the Turkish financial community could network with Malaysian-based investors, and practitioners to facilitate more business opportunities. Malaysia has diverse domestic and international players that engage in international currency business. There are now 150 entities in Malaysia’s Islamic financial system which offer a wide spectrum of Islamic products and services. There are also more than 150 funds in Malaysia including real estate investment funds (REITs) and ETFs that practise ethical investments. These entities have the capabilities to structure funds for investment abroad, including into the emerging markets. Additionally, there are opportunities for ethical investments as more than 80% of equities listed on the Malaysian stock exchange are shariah compliant.