The VBI Community of Practitioners have collectively issued sectoral guidelines on palm oil, renewable energy and energy efficiency, that serve as an impact-based risk assessment toolkit to assist financial and investment decisions of banks. The takaful industry has followed suit with the issuance of the VBI for Takaful Framework that integrates the principles of VBI into products and business practices that promote financial resilience and climate risk management. Conclusion Before I end my remarks, I would like to touch on the importance of the right skill set that can future-proof our halal industry. As we navigate beyond the pandemic, leaders in halal business community have to be agile and forward looking. This includes keeping abreast of the latest technology and constant up skilling to embrace digitalisation. In recognising the potential of digitalisation as a key ingredient to assist halal businesses, the Bank provides an enabling environment for financial institutions to foster innovation such as through the fintech regulatory sandbox and facilitation of pilot projects. These avenues enable the Bank to identify potential adjustments or responses to the existing regulatory framework that commensurate with the risk and scale of activities. The Bank has also established the SME Automation and Digitalisation Facility (ADF) in March 2020, which aims to encourage SMEs to automate processes and digitalise operations to increase productivity and efficiency. In March 2021, an additional allocation of RM700 million has been provided for the ADF, bringing the facility’s total size to RM1 billion.

The ability of Islamic banks to structure Investment Account in accordance with the risk profile and characteristics of the underlying assets offers an attractive opportunity for customers to diversify their investment portfolio across various halal sub-sectors. Second is the wide network of Malaysian financial institutions in facilitating halal exports to tap into regional markets. Increasing interest from ASEAN countries which makes up 42% of the global Muslim population as well as demand from non-Muslim dominated Asian countries such 1/3  BIS central bankers' speeches  as Japan, Korea and Vietnam provide a huge halal consumption base for domestic halal businesses to tap on. Currently, three Malaysian financial institutions have leveraged their extensive global network and strategic partnerships to assist halal exporters in gaining access to new markets. Moving forward, Malaysian financial institutions should take advantage of the strong government-to-government (G2G) ties and multilateral strategic cooperation in the halal sector between countries to offer Islamic trade finance to halal industry players. The third factor is the ability of Islamic financial institutions to facilitate businesses to transition towards more sustainable practices. The underlying concept of Maqasid Shariah which propagates for the attainment of benefits as well as preventing harm, resonates well with sustainability principles that call for a balanced, sustainable and inclusive economic growth. Adopting sustainability practices is imperative to ensure the longevity of businesses. Failure to take this into account may result in substantial financial loss to the halal industry given that our trade partners have started imposing expectations on sustainability as preconditions to transact.