The report shows that Malaysia has performed very well. Malaysia received only one (1) non-compliance (NC) and is among three (3) countries that have achieved zero (0) or a single NC grading. Malaysia is also among 3 countries that had achieved a LC (largely complied) grading with no country receiving full compliance grading on customer due diligence assessment. Notwithstanding this good performance, we will continue to ensure that Malaysia collaborate with the international community to stamp out the activities of money launderers, terrorist finances or other criminal elements. V.  Conclusion  In the decade to the present, Malaysia has significantly transformed our financial sector. The restructuring, consolidation and reform of the financial sector have strengthened the capacity, flexibility and resilience of the financial system. In addition, there has been substantial deepening in several segments of the financial system, including those in takaful, the sukuk market and Islamic banking. Malaysia has also continued to progressively liberalize its already open financial system to further enable the free flow of funds into and out of the system. This transformation has opened up the potential for a range of new opportunities for participation in the Islamic financial sector in Malaysia and for facilitating greater financial flows within the region and from other regions. In conclusion, I wish to invite the business and financial communities attending this Summit to capitalize on this event to arrange for business meetings on the sideline of this Summit.

Significant progress has in fact been achieved in the development of the Malaysian sukuk market, underpinned by strong collaboration among the Government, regulatory agencies, players and investors. By early 2007, Malaysia accounted for 67 per cent, or about twothirds, of the global outstanding sukuk amounting to about USD47 billion. Malaysia is important for the global sukuk market, not only because it represents the largest sukuk market in terms of outstanding size, but also in terms of number of issuance which signifies a strong edge in market vibrancy. Malaysia's strong performance in sukuk activities can be attributed to several key factors that may be similarly leveraged by other issuers and players participating in the Malaysian Islamic capital market. These are: (i)  Firstly, Malaysia has the strong edge by having an efficient platform for sukuk issuance and trading activities covering the infrastructure and facilitative rules that contribute towards efficient price discovery and shorter time to market. The established legal, regulatory and Shariah frameworks in the Islamic financial infrastructure are key competitive advantage for Malaysia. These initiatives have been reinforced by the supporting financial infrastructure including the settlement and bond information systems. There is no restriction on the use of proceeds, ability to use international rating services, ability to hedge positions and ability to swap issuance proceeds into foreign currencies. Submission for foreign currency sukuks from qualified issuers with at least a single “A-” credit rating would be deemed approved upon proper filing of documents with the Securities Commission.