islamic finance, malaysia is committed to be a partner with turkey to further promote the business prospect in this country. malaysia being an islamic financial hub in asia is willing to share with turkey our 30 years of experience in developing its islamic bis central bankers ’ speeches financial industry and our knowledge and insights in operating an islamic financial system that runs parallel with its conventional counterpart. potential turkey - malaysia partnership in islamic finance there are vast opportunities for turkey - malaysia bilateral cooperation, however let me mention five key areas of possible cooperation that could increase cross - border activities between our two countries. these are in the area of sukuk issuance, promoting cross - border activities, islamic fund management, partnership in innovation and in education and research. firstly, in the area of sukuk issuance, we welcome turkish financial and business community to use malaysia ’ s comprehensive and tested infrastructure with its extensive investors network as a platform to raise funds such as sukuk and islamic syndication financing. the multi - currency sukuk market in malaysia is well developed and active with over 60 % of the outstanding sukuk in the world originating from malaysia. there is also the opportunity to list the sukuk on bursa malaysia, the malaysian bourse, which has emerged as the largest exchange for sukuk listing in the world. this gives the listed sukuks greater profiling, visibility and transparency in the global bond market. collaboration in issuance of sukuk would indeed benefit turkey, as turkey ’ s aggressive diversification of its industrial base and services sectors will require huge financing needs that could be partially met through the islamic financial markets. large infrastructure projects such as building the bosphorus shipping canal, the new railway lines and highways might require funding via issuing sovereign sukuk as an alternative source of funding. the extensive privatisation in basic industry – transportation, communication and banking – would also offer the corporates and alternative source of financing that is competitive and innovative. secondly, in promoting cross - border financial activities, the turkish financial community could network with malaysian - based investors, and practitioners to facilitate more business opportunities. malaysia has diverse domestic and international players that engage in international currency business. there are now 150 entities in malaysia ’ s islamic financial system which offer a wide spectrum of islamic products and services. there are also more than 150 funds in malaysia including real estate investment funds ( reits ) and etfs that practise ethical investments. these entities have the capabilities to structure funds for investment abroad, including

zeti akhtar aziz : greater financial integration and financial stability opening remarks by dr zeti akhtar aziz, governor of the central bank of malaysia, at the seacen 30th anniversary conference “ greater financial integration and financial stability ”, kuala lumpur, 20 october 2013. * * * bank negara malaysia is honoured to welcome you to the seacen 30th anniversary conference on “ greater financial integration and financial stability ”. we are especially honoured by the presence of governors and senior officials who are here today, despite the pressing demands on our institutions during this period of persistent uncertainties in the global financial and economic environment. we continue to face challenging and often testing times. over the recent five years, we have been confronted with recurring episodes of turbulence, followed by phases of transitory recoveries. we have seen, and have been part of, extensive collaborative measures and reforms pursued at both the regional and global level. yet, the calm after the storm continues to evade us. the seacen and asian economies have seen significant structural adjustments and wide ranging financial reforms in this decade. during this period intra - regional trade activity has rapidly increased, signifying the deepening of economic ties within the region. intra - regional trade in east asia has expanded from an average of 44 % of total trade in 1995, to 50 % in 2012. intra - regional investment activity has also been on an uptrend. asia ’ s young and increasingly urban and increasingly more affluent population, supported with policy initiatives to strengthen social safety nets – including for healthcare and retirement – will further enhance domestic demand in the region. this will further unlock our trade and growth potential. our diversity also continues to be an important source of strength for the region. the complementarities between the economies in the region provide significant opportunities for greater shared prosperity and mutually reinforcing regional growth. the progressive liberalization of the domestic financial sectors, the development of domestic capital markets and the integration of payments and settlement systems have opened up new channels for regional financial institutions and markets to intermediate funds across borders. these developments have facilitated the recycling of surplus funds from the region for economic development in the region, while also enabling greater diversification of risks. the lessons drawn from the asian financial crisis more than 15 years ago also continue to shape our financial sector reforms, liberalization and economic and financial integration in the region. the focus is on developing a financial sector that serves the needs of the real economy, and which is built on solid foundations of sound risk management and strong financial