The challenge then is for the leadership to chart a clear strategic direction at the group level that, in short term, prepares the organization in responding to those changing environment and, in long term, creates an organization that can sustain success. The strategic direction also must fully embrace the opportunities to leverage on the group's expertise, experience, infrastructure and its extensive networks abroad in offering diversified takaful products and enhancing customer services. Emphasis should also be directed on the enhancement of human capital that would serve as an enabler for the Commerce group to achieve greater height. With the entry of Commerce Takaful Berhad into the domestic takaful industry, we also hope that all takaful players fully internalize the spirit of "takaful", that is mutual cooperation and assistance among each other, so that the industry could collaborate towards common objectives of further enhancing the resilient and expansion of the industry. Initiatives such as developing human talent and finding better and more effective mechanism of venturing abroad should also be explored at industry level. More collaborative efforts may also be directed towards strengthening the retakaful sector in which we have also first mover advantages that would subsequently reduce dependency on conventional reinsurance as a risk mitigation tool. Indeed, in realizing our vision to sustain takaful as an important sector which contributes towards the economic growth of the nation, the industry players have to jointly demonstrate unwavering commitment towards elevating the industry to new and higher levels of achievement.

At the end of 2016 Q3, ten-year yields on inflation-linked bonds in the largest markets varied from –2 percent in the UK to 0 percent in the US. Yields on longer-term inflation-linked bonds are somewhat higher, but still considerably lower than their historical level. Chart: Driving forces behind the fall in the global real interest rate The reasons for the global fall in the real interest rate are complex. The fundamental driving forces are nevertheless reasonably well understood and are shown in the chart. The large current account surpluses of oil-exporting countries and emerging economies have been one important factor. In addition, population ageing and a more uneven distribution of income have driven up saving in many countries. At the same time, investment has been low in many 2/7  BIS central bankers' speeches  advanced economies. One reason for this could be prospects for low returns on investment in productive capital. Since the financial crisis, these structural factors have been amplified by cyclical conditions. While deleveraging has pulled up savings, greater uncertainty may have dampened the willingness to invest and increased the propensity to save. Unconventional monetary policies in many countries have also contributed to pushing down real bond yields. Moreover, the spread between the return on fixed income products with long and short maturities, the so-called term premium, has shown a marked decline in recent years. Historically, investors have been rewarded for providing loans with longer maturities – the term premium has been positive. This is not necessarily the case today.