The facility for a reverse-enquiry Singapore dollar sukuk was completed in January. We have issued the first tranche to the Islamic Bank of Asia, and are reviewing applications from other banks. We have also ensured equal tax, regulatory and liquidity treatment of the sukuk with Singapore Government Securities, effective immediately. Members of the IFSB Board and the industry have been very active in developing talent. Several credible Islamic finance training providers are offering courses here. The Singapore Management University offers an undergraduate module on Islamic Law, Banking and Commerce and the Wealth Management Institute has incorporated an Islamic Finance module in its Masters of Science in Wealth Management programme. The National University of Singapore recently organized an Islamic Finance conference. These initiatives help to raise understanding of Islamic Finance among students and industry practitioners. To support professionals who wish to deepen their expertise, I am pleased to announce that beginning from this year we will sponsor students for the eligible Islamic Finance Masters programmes. MAS will continue to work towards a regulatory approach that is clear, relevant and consistent, across the range of Islamic financial activities. We are committed to working with fellow regulators, and to developing the infrastructure and talent to support the growth of Islamic Finance in Singapore. Conclusion In conclusion, we face challenging times. But the dynamism of Asia, including the Middle East, will return and the structural economic changes are likely to accelerate.

MAS applies a single regulatory framework to both conventional and Islamic banking because our regulations address prudential issues of liquidity, credit, market, operational and concentration risks. These are relevant to both conventional and Islamic banks. While Islamic funding and financing structures are different, we consider the economic substance the underlying risk of these structures, and apply the regulatory treatment that is consistent with the risk. Our regulatory framework therefore provides a level playing field for Islamic and conventional banking. MAS has for some time now issued regulations to clarify the regulatory treatment of various Islamic finance structures under our rules. Today, we have issued another two regulations, 8 as well as a consolidated set of Guidelines which provide clarity on how our banking regulations apply to Islamic banking, and offers specific information of the regulatory treatment of various Islamic banking structures. This set of Guidelines will provide greater clarity and certainty for financial institutions offering Islamic banking products in Singapore. Taken together, these various changes will allow banks to  5  ADB, “Infrastructure for a Seamless Asia”, April 2009. 6  Moody’s Global Corporate Finance, “Islamic Finance: Asian Sukuk Market Faces New but also Familiar Challenges”, April 2009. 7  Capgemini & Merrill Lynch, “World Wealth Report” 2008. 8  MAS Regulations 23C and 23D on Diminishing Musharaka financing and Spot Murabaha transactions respectively. BIS Review 57/2009  3  conduct a wide range of Islamic financing activities, and to have greater flexibility to structure instruments to meet their risk management needs.