However, I think that the deregulation of the capital markets was still seen as something new and that it is the political change during the post-was period that has mainly changed the conditions for economic policy. What people perceive as "globalisation" is probably exactly that, combined with the fact that the new information technology enables all transactions to be implemented much more quickly than before. However, the concept of globalisation also includes the growth of multinational companies, with production units in different countries, the fact that an increasing number of countries are drawn into the international trade exchange and that the labour force moves freely between countries, which is the case at least within the EU. When currency regulation was abolished, foreign investors could begin to buy Swedish treasury bonds and shares. Swedes could also begin to save in foreign banks, pension insurance funds and shares. There had existed major obstacles to such transactions before, although they were not completely impossible to overcome. Foreign ownership of Swedish shares and SEK-denominated bonds rose from almost zero in 1980 to SEK 1,350 billion in 2001. When the barriers for capital movement were removed in this way, Sweden became subject to daily examination. The slightest sign of mismanagement of economic policy, such as a growing budget deficit, rising payroll expenses or inflationary tendencies risks leading to foreign investors selling off their holdings of Swedish treasury bonds and shares. Signs of mismanagement can also lead to Swedish households and companies choosing to invest their money abroad.

Not only will this provide a deep pool of highly trained and capable employees, it will also further promote the innovation of Islamic financial products and services. In a dual financial environment, neutrality in treatment between Islamic and conventional financial products is important in order to create a level playing field. It also sets the stage for greater innovation to take place to support the development of the Islamic financial services industry going forward. With the strengthened and robust Islamic financial infrastructure firmly achieved in the first two phases of the FSMP, the Islamic financial services industry is poised to tap new growth opportunities and grow to its full potential. This will inevitably increase the breadth and depth of the Islamic financial market and, more importantly, strengthen Malaysia 's position as an attractive and dynamic international Islamic financial centre. In preparing for the pressures of liberalisation and increased competition, continuous review of the regulatory framework and their implications on the efficiency and an environment conducive for innovation is taken into consideration. The cost and benefits of regulations are carefully weighed to ensure a well-balanced regulatory framework that meets prudential objectives yet remaining relevant and adaptable to the changing environment. Premised on this, the prudential framework is evolving towards a predominantly principle-based regulatory approach. The underlying flexibility inherent in the principle-based approach would involve a regulatory framework that relies more on market discipline, where the market will be entrusted to allocate resources and risks, with greater reward for prudent practices.