discussed the subject of poverty eradication through human capital development. the purpose of the financial inclusion advisers programme was to provide practitioners and regulators in the area of financial inclusion with practical ideas via the sharing of knowledge and experiences on developing institutional structures, creating an enabling environment and enhancing financial literacy. the ideas and experiences shared could then be contextualised to the prevailing local conditions to enhance financial inclusion. this proposal was welcomed by the members and resulted in the first financial inclusion advisers programme conducted in lusaka, zambia in april 2009. the success of this inaugural programme hosted led us to this second programme hosted here in malaysia with the support of jica. jica has long been involved in capacity building in the african continent, and we look forward to collaborating in the future in this area of building more inclusive financial systems. the malaysian experience on the financial inclusion agenda in malaysia, the commitment to the financial inclusion agenda is reflected in the new central bank of malaysia act 2009 which incorporates financial inclusion as an objective of the central bank. with the enactment of the act in november of 2009, the central bank has imbedded in the legislation the financial inclusion agenda to ensure that future generation of central bankers will continue to direct efforts to building an inclusive financial system. additionally, the central bank in the process of formulating a new blue print for the financial sector for the next decade. this blueprint would also ensure the development of a more inclusive financial system. the results of the financial inclusion measures thus far have shown positive results. in 2009, the penetration of deposit accounts and loan accounts in malaysia are 3, 300 deposit accounts per 1, 000 adults and 1, 100 loan accounts per 1, 000 adults respectively, which is amongst the highest in the world. this high level of financial inclusion is the result of conscious policies to build a progressive and inclusive financial system. the strategies implemented have generated six characteristics of the financial system. first, a business environment that allows a diverse range of financial service providers to thrive and compete. this environment has led to the creation of commercial financial institutions with differentiated strategies based on their strengths and the delivery of a broader range of products and services that meet the diverse needs of consumers and businesses. the financial system also includes foreign financial institutions through a series of sequenced liberalisation measures as well as development financial institutions, cooperatives and government agencies that complement the domestic commercial banking institutions. this approach leverages on the innovation and the implementation capabilities of the private sector and the diversity and dynamism of competitive markets. at

by 2011. but, as capacity and institutional building efforts continue to be pursued, it must be complemented by enhancements in regulatory, supervisory and surveillance framework to preserve the integrity and resilience of the financial system. clearly this is the distinction which must be made with de - regularisation per se. islamic banking islamic banking also remains as one of the key agendas under the fsmp. also in the recently announced liberalisation measures, we will issue up to two new licenses given the growing demand and the need to give further boost to the mifc initiative. as we have more than two decades of experience in this area, bank negara malaysia will continue to build on this competitive advantage to ensure malaysia remains at the forefront of global islamic banking. it is therefore encouraging to note that islamic finance has continued to demonstrate its evolution and strong growth as assets have expanded by 22 % to rm192 billion in 2008 alone and now accounts for 15. 0 % of the total assets in the industry. this reflects the growing relevance of islamic banking and is testimony to its acceptance as the embodiment of ethical banking and finance. other threats to the financial system financial institutions also face increasing challenges from other non - financial risks associated with the extensive use of technology and the potential outbreak of epidemics. therefore it is vital then that the state of preparedness of bcp / bcm contingency measures is constantly ready to address any possibilities and not be blind sided by financial risks alone. closing it is neither by accident nor coincidence that the malaysian financial system is currently at a position of considerable strength, depth and resilience. rather it is through the combined efforts of both industry players and the regulator as well as the support of all our stakeholders. i believe that this spirit of cooperation and mutual respect is entrenched and will serve us once again as we look forward to safely ride out the impact of the current global financial crisis.