in islamic finance, the international shariah research academy ( isra ) was established this year to conduct applied shariah research on the contemporary islamic finance issues. isra also provides a platform that promotes active engagement and dialogue among global shariah scholars that promote mutual respect in shariah and the convergence of views from different jurisdictions in the global islamic financial system. the third strategy is to promote greater financial integration with the global islamic financial system. the malaysian islamic financial system has also been progressively liberalised to allow for increased foreign entry and participation in our financial system, thus facilitating greater cross border flows and thus strengthening the international financial inter - linkages. this has taken the form of issuance of new licences and increasing foreign participation in both islamic banks and takaful companies to 49 %. new licences were also issued to foreign fund managers and foreign stockbrokers. in this new phase of development for islamic finance, malaysia as an international islamic financial hub, has increasingly become a meeting place for businesses from different parts of the world that need to raise funds and for investors that have surplus funds for investment. islamic finance going forward there is now a strong and growing demand for islamic financial products in the global market, far exceeding the current availability of financial products and services being provided by the islamic financial institutions. going forward, there is therefore tremendous upside potential for islamic finance. as the pace of development of the islamic financial services industry accelerates, the increasingly more complex and challenging environment will continue to shape the advancement of the industry. central to this will be the expansion of the business parameters and innovative product offerings. for this, there is increased investment in research and development to yield new instruments and structures to meet the changing requirements of the international community. an area of focus, in particular, is related to the development of mechanisms for risk mitigation and liquidity management. of importance, are the solutions needed to converge the market requirements and the shariah compliance. increased innovation also calls for greater emphasis on the implementation of best practices and higher standard of risk management. vital to this is the implementation of the prudential standards promulgated by the ifsb. there is also a need to leverage more on it applications and the strengthening of management capabilities of the islamic financial institutions. going forward, with the increased awareness and understanding of islamic finance, the role of market discipline will become increasingly important in driving islamic financial institutions towards ensuring shariah compliance in the operations, in improving operational efficiency and in institut

jessica chew cheng lian : opening remarks - central bank payments conference opening remarks by ms jessica chew cheng lian, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the central bank payments conference, kuala lumpur, 11 june 2024. * * * first and foremost, i would like to thank the organisers, currency research, for inviting me to speak today. evolution of payments the payment system lies at the heart of economic activity. if money is the lifeblood of the economy, then payment systems represent the veins that allow money to flow to where it is needed. while this fundamental reality has not changed, over the past few decades, technological advancements have dramatically changed the form, methods and experience of payments in our daily lives. not too long ago, we waited anxiously for cheques to clear to pay our mortgages or for funds to transfer across borders for our family needs or children's education. carrying cash in our purses or wallets was as automatic as putting clothes on to leave our homes. today, many of us conduct daily financial transactions digitally and through our mobile phones – with a level of convenience not possible or imaginable before. in the wholesale payment space, the transformation has been no less significant. we have moved to highly automated, real - time systems that enable continuous and instantaneous settlement. the financial system has also become more efficient as settlement cycles for securities have been gradually reduced. similar to retail payments, many of these improvements have been enabled by technological progress, creating greater efficiencies in the financial system. central banks'mandate for payments these developments have important implications for the role and responsibilities of central banks in relation to payment systems. while this role may vary across countries, central bank responsibilities over payment systems generally stem from an interest in : supporting the implementation of monetary policy ; preventing systemic risks that can arise from the transmission of financial stress through the payment system ; and promoting fair, efficient and inclusive operations of payment systems given their central role in the economy. 1 / 5 bis - central bankers'speeches in the case of bank negara malaysia ( bnm ), our responsibilities have two dimensions. first, as overseer to ensure the safety, reliability and efficiency of the payment system. second, leading and supporting a developmental agenda to ensure that the payment architecture remains fit for purpose in support of economic activity. significant changes occurring in the payment landscape have impacted the way central banks view their responsibilities for payment systems in at least two ways.