The compilation and reporting of statistics must not be vulnerable to political and electoral cycles. Countries should consider the quality and integrity of their statistics as a priority matter, to ensure that a proper system of checks and balances is in place when compiling these statistics, and should apply minimum standards, reinforcing the independence, integrity and accountability of national statistical institutes. Despite the significant achievements and the good quality of euro area statistics in general, further improvements and enhancements are planned. Ongoing economic transformation has to be accommodated in a forward-looking manner and statistical gaps identified by users inside and outside the ECB have to be filled in as far as possible. Given the long lead times which characterise statistical  BIS Review 67/2004  3  projects, the Directorate General Statistics of the ECB has established medium-term priorities in this field. Important items on this agenda are: a full system of euro area quarterly accounts for each institutional sector1, more comprehensive statistics for the monitoring and analysis of financial stability, the further development of external statistics, promoting the compilation of Principal European Economic Indicators, including the application of the first-for-Europe principle, and an increasing focus on the various quality dimensions of European statistics. Let me elaborate a bit more on the first two items. Progress in these areas is expected to have a major influence on policy analysis. The work currently undertaken by the ECB and Eurostat on quarterly euro area accounts aims at a fully integrated system of sectoral financial and non-financial accounts.

Now I wish to update on the progress of the MIFC. Malaysia is still the largest sukuk market commanding over 60% of the global sukuk market. For the year ended 2008, new sukuk issuance in Malaysia was the highest globally at over 36 percent. Currently there are 9 Islamic fund management companies that have been approved by SC to set up business. Within the MIFC community, there are also 14 Islamic banks with international currency business units (ICBU) and three international Islamic banks (IIB). To further entrench the Islamic financial market, the government has recently announced a number of liberalisation policies to enhance global linkages and accelerate the realisation of the MIFC agenda. The announcement includes the offering of two mega Islamic banks licences, where they will predominantly be wholesale Islamic banks undertaking to a large extent international Islamic financial business. Furthermore, two family Takaful licences are being offered. For the existing Islamic banks, the government is giving flexibility to increase the foreign equity participation to 70% of shareholding. Furthermore, 5 foreign legal firms will also be allowed to set-up operation in Malaysia. Today, with signing of the memorandum of participation marks the beginning of a new chapter in Islamic finance. I would encourage each stakeholder, particularly Bursa, to exploit the vast potentials of this new entity and take this opportunity to enhance research and product development capacities.