target and non - sustainability practices will lead to an increase cost of business exporting into these markets. malaysia ’ s halal food and beverages segment, which makes up 80 % of malaysia ’ s halal production and 86 % 5 of total halal exports may be adversely affected by climate change. an increase in temperature will lower the resilience of the agroecosystem against pests and pathogens, resulting in lower yields and quality of crops, affecting the supply of raw materials. in addition, more mncs are embracing the sustainability agenda compelling halal smes to factor in sustainability as part of their business strategies, operations and decision making. it is heartening that prominent halal mnc manufacturers have already started imposing sustainable practices across their supply chain. nestle for example, has established the paddy club back in 2012 as an initiative to ensure rice used for the company ’ s cereal products is sourced sustainably and responsibly. another example is the sustainability agriculture code as a pre - requisite for suppliers to enter unilever ’ s supply chain as part of the group ’ s ambition to sustainable sourcing. towards this end, the islamic financial institutions have put together a lot of efforts and resources in place, underpinned by the concept of value - based intermediation ( vbi ) such that financing and banking activities are in line with sustainability practices. the vbi community of practitioners have collectively issued sectoral guidelines on palm oil, renewable energy and energy efficiency, that serve as an impact - based risk assessment toolkit to assist financial and investment decisions of banks. the takaful industry has followed suit with the issuance of the vbi for takaful framework that integrates the principles of vbi into products and business practices that promote financial resilience and climate risk management. conclusion before i end my remarks, i would like to touch on the importance of the right skill set that can future - proof our halal industry. as we navigate beyond the pandemic, leaders in halal business community have to be agile and forward looking. this includes keeping abreast of the latest technology and constant up skilling to embrace digitalisation. in recognising the potential of digitalisation as a key ingredient to assist halal businesses, the bank provides an enabling environment for financial institutions to foster innovation such as through the fintech regulatory sandbox and facilitation of pilot projects. these avenues enable the bank to identify potential adjustments or responses

aspects, will be able to open up a series of medium to longer term opportunities to export to other countries. as such, securing a suitable financial solution to upgrade and upscale production to meet the demand and requirements, would be an important prerequisite for businesses. recognising these key success factors, recent announcement by government to introduce the halal industry strategic development programme, or ‘ be - halal ’ — under the national halal council secretariat to drive the growth of the halal industry is timely. under “ be - halal ”, participants will be developed further through programmes run by experts in various fields to enable them to be more innovative and progressive as they face various global challenges and ultimately contribute to the nation ’ s halal industry. islamic finance has become part of the mainstream with offerings of competitive financial solutions malaysia has an islamic financial system that operates alongside the conventional system. our unique experience with a dual financial system has been effective on many fronts – effective in 1 / 3 bis central bankers'speeches bringing segments of the society to access the services of the formal financial system ; effective in enabling and facilitating businesses, especially the small and medium - sized entrepreneurs, to expand their businesses ; and effective in steering development of the country. we have a comprehensive islamic financial system comprising the core components of banking, takaful and capital markets. the islamic finance system have matured and are as competitive with the conventional system, thus providing better choices and options. a robust financial infrastructure is also in place to support development of this system, alongside a responsive regulatory and supervisory framework whilst achieving the high standards of best practice in corporate governance and in financial transparency and disclosure. the islamic financial system consistently reinforces its position as a viable and effective means of intermediation that contributes to the overall economic development. today, islamic banking accounts for 33 percent of malaysia ’ s total banking assets while takaful market share stands at 11 percent for family takaful and 10. 1 percent for general takaful. the islamic financial system continues to grow – at a pace faster than the conventional system. as at end - june 2019, financing outstanding of islamic banks expanded at 8. 6 percent compared to 2. 1 percent for the conventional. meanwhile, new general takaful contributions grew at 16. 4 percent compared to 6. 2 percent for the insurance premium. however, new family takaful contributions grew at 10 percent, slightly lower to life insurance premium of 15. 4 percent. this brings me to the point