mohd razif bin abd kadir : shared services and outsourcing in the malaysian financial sector address by mr mohd razif bin abd kadir, deputy governor of the central bank of malaysia, at the shared services and outsourcing in the financial sector – a joint forum by bank negara malaysia and the multimedia development corporation, kuala lumpur, 13 november 2007. * * * distinguished guests, ladies and gentlemen, it is with great pleasure that i welcome you to the inaugural forum on shared services and outsourcing ( sso ) in the financial sector. this forum is jointly organised by bank negara malaysia and the multimedia development corporation in a cooperative initiative to enhance the significance of sso in the malaysian financial sector. the organisation of this event, which focuses specially on the financial services industry and its players, is a timely bringing together of minds to discuss the issues and concerns faced by financial institutions in sso. the growing significance of the global sso market suggests to the financial industry players that the outsourcing of operations which would otherwise be performed in - house is certainly an idea worth exploring. according to a recent study by frost & sullivan, the global sso market was estimated to be worth us $ 930 billion in 2006 and is forecasted to reach a market size of us $ 1, 430 billion by end - 2009. further, the banking, financial services and insurance sectors had the largest sso spending in 2006 at an estimate of us $ 273 billion or almost a third of total sso spending. this is not surprising news, given that major global players in the industry such as hsbc, standard chartered and citibank have established sso centres on our shores. regional players such as maybank, cimb and ocbc have also outsourced certain operations here to increase their productivity levels. we are happy to have them here today to share their experiences and perspectives. it would not be presumptuous of me to say that the financial institutions in malaysia are in an enviable position where sso is concerned in view of malaysia's standing as a leading destination for the establishment of sso hubs. a. t. kearney ranked malaysia as the third most attractive outsourcing centre in their global services location index in three consecutive reports, including this year's index. the report states that malaysia was a " natural choice " for outsourcing in view of its low costs, modern infrastructure, business environment and high levels

emphasised intellectual rigour. their contributions were immeasurable. their wisdom and foresight were unsurpassed and far superior to others. in many cases they were a few hundred years ahead of their time. ibnu sina, ibnu rushd and al jabir were among the many legendary thinkers who not only excelled in one specific area of study, but in multiple areas of knowledge such as philosophy, science and theology. the great thinkers of the past have indeed demonstrated exemplary intellectual qualities for us to emulate. the current highly competitive and demanding operating environment requires presentday ibnu sina, ibnu rushd and al jabir to formulate and develop solutions to the challenges faced by the ummah. today, the definition of shariah scholars is often understood in a narrow context where recognition is largely attributed to one ’ s proficiency in the field of islamic theocracy. however, the nature and challenges faced by society today demand a broader context of scholarly endeavours that necessitate a new cadre of islamic finance scholars. such scholars, not only excel in their depth of shariah knowledge and wisdom, but also possess knowledge in other related disciplines such as economics, finance and law. the combination of technical knowledge and shariah wisdom, together with a strong understanding in other disciplines would produce great thinkers who are able to translate theoretical reasoning into practice. these thinkers could contribute to the society with their contemporary innovative solutions, starting from even small ideas that could potentially bring incremental changes with bigger positive impact over the long run. great thinkers of yesteryears were known for the audacity to think beyond the sphere of conventional wisdom to shift into a new paradigm that molded civilisation into the next leap forward. a high standard of professionalism, laced with strong ethical values and integrity also form the prerequisites to create a new cadre of islamic finance scholars. the pursuit for intellectual diversity and professionalism among scholars is best demonstrated through shariah interpretations and lines of reasoning that evolve with peculiarity of circumstances, demonstrating a high degree of tolerance and respect of other shariah school of thoughts. it is only by having talents with these ingrained ethics and characteristics that we could elevate islamic finance to greater heights in our endeavour to improve the wellbeing of the ummah. tonight, as we commemorate this prestigious award, let us celebrate this year ’ s and past years ’ winners for their contributions to drive the islamic finance agenda forward. it is not