and requirements. this will represent an important database for the development of a comprehensive framework for the development of smes initiated by bank negara. the survey findings will also be useful for the banking industry in formulating its own strategic plans with respect to this segment. with the advances in technology, banking institutions should be in a position to enhance access and quality of service for the smes. ladies and gentlemen, the performance of the banking institutions is also being gauged from the perspective of the shareholders. there are several significant issues affecting shareholders in the current environment. the global trend is being driven partly by an increased focus by banks on the financial performance and on the creation of shareholder value. in essence, the potential for growth lies in the value of their investments. this would be the right thing to do in the interest of long - term survival. there are enough examples of companies around the world that had lost track of the true reason for venturing into a particular business and as a result, they find themselves no longer in the business. despite narrowing of interest margins and high costs, the banking industry has been able to increase their returns with the average return to shareholders in 2001 being 14. 5 %. banks, like other companies in a free market economy, have a responsibility to generate returns for their shareholders. it is in the interests of the community as a whole that they do so, otherwise we could end up with a weak banking sector. but any company maximises shareholder value subject to constraints. these may be imposed by laws and regulations, or by the expectations of society. this means that if banks wish to preserve their reputation and the confidence of their customers, on which ultimately the strength of their franchise depends, they should act in a way that is seen to be fair and reasonable. to do otherwise, may in the long - term, be inconsistent with the objective of creating shareholder value. ladies and gentlemen, let me take a moment to say a few words on islamic banking. today, islamic banking in malaysia has firmed its position as a viable and vibrant component of the banking system. bank negara malaysia has been in the forefront in providing the necessary and required infrastructure for the sector to grow further. from a market share of virtually nil a decade ago, islamic banking has captured more than 8 % of the assets of the banking system and is poised to reach 20 % by 2010. we capitalized on the dual banking system which we believed is the right approach, and we will continue to embark in

value - added services are among the regulatory flexibilities under the framework. insights from the 2022 joint bnm - industry demand - side study should also be fully utilised to better identify protection needs and understand the behaviours of the target segments to improve product development and distribution strategy. the demand - side study provides insights on the top worries across emerging segments in malaysia, namely accidents, health concerns and income loss as well as their preferred distribution channel. for instance, young millennial families prefer digital channels while gig workers are more open to non - bank channels. such insights would be useful to better design microinsurance and microtakaful products that meet the needs and fit the realities of the target segments, particularly the low - income market in malaysia. in economic policy, there is an aphorism that a rising tide lifts all boats. similar applies to increasing financial literacy. as the financial education journey takes time and can be resource intensive, itos should explore more cost - effective ways through strategic partnerships and collaborative efforts. we appreciate the industry's participation in the multi - stakeholder financial education network ( fen ) and bank negara malaysia's ( bnm ) annual karnival celik kewangan, and we look forward to the continuous support from the industry to enhance financial literacy of malaysians. the industry should also capitalise on the appeal of social media to reach a broader set of consumers. in this day and age when information is just a click away, developing a credible, interesting and engaging one - stop education portal for consumers to obtain information on protection products is a necessity. we look to the three industry associations to enhance the appeal and functionality of the existing mycoverage portal to help consumers navigate and identify the most suitable protection products for their needs. promoting innovation and safeguarding consumer interests on bnm's part, we remain committed to provide a conducive environment for innovation, in support of new business model and solutions towards achieving an inclusive financial sector. in 2023, bnm conducted a holistic review of the regulatory approach to explore areas in which we can provide further guidance and clarity to facilitate responsible innovation. over 60 policies that may have created potential frictions were identified and reviews of a majority of these regulations are underway, with some already implemented. 3 / 5 bis - central bankers'speeches to better balance the benefits and risks, our approach is guided by three overarching principles. first, parity – implementing the same type of regulations