While the existing arrangement has worked well, experience in other developed markets has also demonstrated that such a facility is particularly useful in times of unusual market volatility, as this enhances confidence that liquidity needs in the banking system will be met. 18. Hence, to enhance the robustness of the system, MAS will widen participation in the Standing Facility to MEPS+ participating banks, subject to necessary documentation. The PSA/ISMA Global Master Repurchase Agreement continues to be a requirement for banks to access the borrowing facility which will remain collateralised against Singapore Government Securities. We will provide more details on this to the banks over the next few weeks. Corporate governance, market conduct 19. Apart from dealing with issues relating to the safety and soundness of banks, and the stability of financial system, MAS has also been working on improving the responsiveness of our rules, as well as on improving corporate governance and market conduct. 20. MAS is proposing amendments to the Securities and Futures Act and the Financial Advisers Act. The amendments aim to facilitate new business activities and products in response to market needs, to enhance the market misconduct enforcement framework and to fine-tune the legislation to achieve greater clarity, consistency and operational efficiency. Policy and legislative consultation on the proposed amendments to the Acts have already been conducted. We will table the Amendment Bills within the next few months. 21.

The move enhanced further the vibrancy of the Islamic interbank market. The efficiency of the Islamic interbank market is enhanced by the Real Time Gross Settlement System (RENTAS) and the Fully Automated System for Tendering (FAST). RENTAS facilitates larger value interbank funds transfers and scriptless securities while FAST facilitates the tendering process for Islamic securities including government securities, commercial papers and private debt securities. Funds are raised to finance long-term infrastructure and development projects through the issuance of Islamic private debt securities. Recognising the importance of the capital market, Malaysia initiated the development of a private Islamic financial securities market in the early nineties, about six years after the establishment of the Islamic bank, with the issuance of the first Islamic financial instrument. Subsequently, more instruments were issued and these created an investment environment conducive for investors, including banks. The introduction of the Islamic capital market has reduced the over-dependence on the Islamic banking system for long-term financing and allows Islamic banking institutions to diversify part of the risks emanating from asset and liability mismatches. The existence of the Islamic capital market plays an important role in reducing a potential source of financial vulnerabilities and enhances the robustness and resilience of the Islamic financial system, leading to greater financial stability. A significant development in the domestic Islamic financial market was the recent issuance of ringgitdenominated Islamic debt securities by two multilateral financial institutions. This has heightened confidence in the Malaysian Islamic financial market.