net contribution, as compared to general takaful products that dominated a share of 63 percent back in 1984. the takaful industry exhibits high potential, as demonstrated by its robust expansion with annual growth rate of total assets and contributions averaging between 20 percent and 26 percent over the period of 2004 to 2009. globally, malaysia also signifies its presence in the takaful market, being the second largest takaful market in the world as its total assets of us $ 3. 2 billion dominated 26 percent of total global takaful assets in 2009. whilst sustaining the current pace of development, growth prospect remains strong for the takaful sector, in view of the large untapped potential, where out of the 53. 5 percent market penetration rate for both takaful and insurance, the market penetration rate for takaful was merely 10. 9 percent in september 2010. the takaful industry indeed represents an important component in the overall islamic financial system. given its role in providing risk protection, the takaful industry offers a suite of financial products and services that complement the existing range available for consumers. in recognising its importance, focus has been given in developing a dynamic and vibrant takaful industry within our islamic financial system. where the industry is today has been an outcome of an accumulation of efforts in instituting a comprehensive islamic financial landscape in malaysia ’ s financial system. a strong institutional infrastructure and effective legal, regulatory and shariah framework are the underpinnings of our islamic bis central bankers ’ speeches financial industry. in our pursuit to develop islamic finance, the recent enhancement to the central banking act has accorded formal recognition to the existence of islamic finance as an arm of the dual financial system, thereby giving significance and due prominence to islamic finance. moving forward, a number of initiatives are planned to further enhance the competitiveness and growth momentum of the takaful industry, emphasising on enhancement of the regulatory and supervisory framework and the shariah governance framework. such initiatives are laid down for industry players to capitalise on, to achieve sustainable success and to unleash their potential gains both locally and abroad. in light of this, allow me to share my thoughts on some key focus areas and developments which embed our aspirations on the future direction of the takaful industry. against a backdrop of growing opportunities and challenges as the business environment becomes more intensified and challenging, capacity and capability building measures for industry players to compete effectively and efficiently will continue to be pursued

is less vulnerable to global economic shocks. ladies and gentlemen. last year our economy posted the best gdp growth in 31 year. one of the reasons for this is strong investor confidence in our country, as a viable emerging economy. this was coupled with the 2. 8 average inflation rate in 2007, which was the lowest in 21 years. other indicators likewise exhibited stronger economic positions such as the country ’ s balance of payments, which posted a record surplus of usd 8. 6 billion in 2007 and our all - time high level of international reserves. as for the banking sector, it remains fundamentally sound with the average capital level well above the minimum regulatory requirement and the npl ratio that is now almost back to the 1997 pre - crisis level of around 4. 0 percent. the rcbc group in particular, has shown marked improvement in performance as it posted a net income for the year ended 2007 which was 50 percent better than the previous year ’ s level. further, we take the bank ’ s recent issuance of p7 billion worth of unsecured subordinated debt as a sign of bank ’ s commitment to further strengthen its capital base as it assumes new risk exposures. rcbc ’ s sme lending program is anchored on the theme “ banking on emerging corporates. ” this signals the belief and confidence of rcbc ’ s leadership in the future of smes to become growth drivers of the philippine economy. i believe you are on the right track. i hope this will steer the tempo of competition in the banking industry as it opens diversification of possible sources of income for banks. indeed, the challenge of setting a footprint on sme lending is a milestone rcbc and other banks should take, as its contribution in providing a strong foundation for sustained and broad - based economic growth for our country. again, my congratulations to rcbc. mabuhay!