in the asean region, and it is the leading global centre for sukuk issuance. the regulatory framework and supporting infrastructure for bond issuances here is comprehensive. in the past, many 3 / 4 bis central bankers'speeches foreign corporations including multinationals have issued bonds and sukuk out of malaysia. with the increased financing requirement by chinese companies for infrastructure development throughout the asian region, estimated to be more than usd1 trillion in the initial stage, investment banks should seize the business opportunities in bonds origination, distribution, investment and trading services. our markets have already seen issuances of ‘ dim sum ’ bonds which were highly successful, such as the previous axiata and cagamas issuances. 4. fourth, is to offer competitive trade financing and settlement services. from our industry engagements through bank negara malaysia ’ s financial markets committee, a key area that we need to strengthen in support of our international and regional trade is trade financing. given the importance of china to us in this, renminbi trade financing should be given special attention. for corporations which trade predominantly with china, there are many benefits to settle trade in renminbi, in particular, lower foreign exchange conversion costs and greater access to new markets in china. in switching to renminbi, corporations should review on the internal changes required, such as invoicing and trade documentation in renminbi, accounting and any other operational procedures, including engaging banks which are able to provide advice and facilitate trade financing in renminbi. banks need to be ready in this area, to develop the system to support the trade financing and to be familiar and current with the rules and regulations of the chinese authorities. further improvement should be looked into to entice more participation, and efficient ways should be explored to ease trade facilitation in renminbi. in another aspect, this space can also capitalise on another work area of the financial market committee in looking at the introduction of a more standardised documentation requirement across industry. coupled with the broader and more flexible trade financing facilities and hedging tools, this will create a more business - friendly market which will in turn amplify participation. 5. last but not least, is to develop investment products in renminbi. in the past, the efforts in promoting the use of renminbi has primarily emphasised transactions or trades in goods and services between the two countries. with the transformation and internationalisation of renminbi, we should accelerate

the pattern of our international trade. previously, our trade was predominantly with the major developed economies. now, almost two - thirds of our trade is with asia. as the asian markets continue to expand and as the trade increases, it becomes a mutually reinforcing trend in the region. thirdly, our economic structure has become increasingly more diversified with new areas of comparative advantages emerging. as this occurs, we are seeing the increased two way flows of investment, financial flows and talent. with full employment, activities requiring low labour cost are no longer our comparative advantage. both multi - nationals and domestic corporations in such activities have since the 1990s relocated to other parts of the region. resources are now redeployed to new areas of comparative advantage which are generating new areas of growth. as part of this transformation, the services sector has continued to become an important driver of growth, reflecting the flexibility and agility of the economy to shift resources to new areas of growth. while malaysia continues to be a recipient of foreign direct investment amounting to 7. 2 % of gnp, outward foreign direct investment by malaysian corporations account for 6. 9 % of gnp. the financial landscape has also been dramatically transformed to become more diversified, more market oriented and more liberalised. the sector has also evolved from being fragmented to becoming more consolidated, operating with higher levels of efficiency. there are also stronger international linkages not only in terms of increased foreign presence in our financial system but also our financial institutions are increasingly venturing abroad. this trend has increased our international inter - linkages resulting in greater economic and financial integration with the global economy and international financial system. new areas of growth are also emerging in the financial system including in investment banking and islamic finance. the development of our domestic financial markets, and the more liberalised environment has contributed to increased two - way flow of funds. these two - way flows have promoted the orderly functioning of our foreign exchange market. in addition, the more diversified financial markets have in turn reduced our vulnerability to extreme volatility. these transformations have brought about significant payoffs for our nation. today, the income per capita exceeds usd7, 000, double of what it was seven years ago in 2001. with the increased resilience, the future prospects remain positive with the economy on a steady growth path going forward. there is however, significant uncertainty in the global economy in the current environment, with some of the largest economies in the world bracing for slower growth and continued turmoil in the financial