This MoU sets a framework of cooperation among OIC member countries in key economic activities, with the objective of enhancing the opportunities for economic growth and development. Today’s Seminar is indeed a testimony to the continued efforts by both the IDB and Malaysia in enhancing the cooperation and deepening of business relationship. As all of us are aware, infrastructure development is a critical component to unlock potential economic activities, thus supporting sustainable economic growth of a nation. Malaysia has placed great emphasis on infrastructure development as part of its economic transformation, diversifying from agriculture to manufacturing and, in more recent years, in the services sector as well. Over the last ten years, the Government of Malaysia has allocated a total of nearly RM100 billion for infrastructure development mainly in transport, energy and public utilities. The Malaysian government has also encouraged the participation of the private sector in the development of infrastructure through privatization and the public-private partnership (PPP) policies. On the global front, the estimated value of infrastructure development is estimated to be USD35 trillion over the next 20 years. For the Asian region alone, a study done by the Asian Development Bank (ADB) reveals that the region needs USD750 billion per year over the year 2010–2020 to meet the rising needs of infrastructure development. Out of this, the needs for the ASEAN region have been estimated to be over USD60 billion per year. Considering the vast opportunities of infrastructure projects regionally and globally, Malaysian contractors should seize the opportunity for further expansion of their business.

Bank Negara Malaysia has and will continue to play an active role in promoting the offering of Islamic financial products and services, including sukuks or Islamic bonds. For issuers that include government agencies, multinational corporations and development institutions, sukuks play a multi-faceted role in meeting different funding requirements ranging from large infrastructure and developmental projects to capital and business expansion. As part of Malaysia’s goal in promoting the issuance of sukuks, various attractive initiatives are offered. These include tax exemption, facilitative approval processes and liberal foreign exchange rules. In Malaysia, sukuks accounted for nearly 60% of outstanding corporate bonds in 2009. As at end of June 2009, Malaysia’s outstanding sukuks, both private and public, accounted for about 62% of outstanding sukuks globally. Total global sukuk issued during the 12 months period until September 2009 is about USD41 billion, of which Malaysia’s share accounted for almost USD30 billion or nearly 74%. We in Bank Negara Malaysia are confident that in 2010, sukuk financing will continue to play an increasingly important role in financing across the Malaysian economy including cross-border financing of overseas projects by Malaysian companies. I am very confident that this Seminar and the opportunities for business networking will be a fruitful one. On this note, and with the lafaz Allahuakbar, it is my pleasure and honour to declare open the Seminar on Financing for Overseas Project. 2  BIS Review 7/2010