and concentrating risks instead. the list goes on. each of these plays a role but if we are to identify a common factor across these various causes it is this : that finance has become detached from economic realities. as we look to develop our financial system, we have to bear in mind that the basic role of finance is to allocate scarce capital to its most productive use. we earn a return only if the capital is deployed to eventually produce goods and services that are valued by the market. when the nexus between the mobilization of capital and the productive use of capital is broken, the returns cannot be sustained – the bubble must eventually burst, with painful consequences. in this crisis, both conventional and islamic financial markets have been affected, but the restrictions on the use of leverage and speculation has put islamic finance in a better stead. in the coming years, as the shariah principles of using capital to build productive capacity gain wider recognition, islamic finance will assume a more prominent role. estimates of global islamic finance assets today range from us $ 700 billion to us $ 1 trillion and one consultancy firm estimates this could potentially grow to us $ 1. 6 trillion by 2012. 4 countries in asia are using islamic finance to fund urban development and public infrastructure projects to meet the growing demands of their populations. the adb estimates that asian countries would need more than us $ 8 trillion of infrastructure investment between kawai and wignaraja, “ the asian " noodle bowl " : is it serious for business? ” asian development bank institute working paper series no. 136, april 2009. oliver wyman, “ the next chapter in islamic finance - higher rewards but higher risks ”, april 2009. 2010 and 2020. 5 international financial institutions such as the islamic development bank are active in funding worthwhile investment projects. the global sukuk market remains a relatively new asset class with much room to grow out. in 2007, asian currency - denominated sukuk outstanding grew by almost 50 % but the market contracted by only 1. 5 % to us $ 64. 3 billion at end - 2008. 6 around us $ 1. 3 billion in sovereign sukuk issuance will come from malaysia, indonesia and singapore in the first half of 2009, and more private sector issuers are expected to tap the sukuk market and to attract new investors and clients. in asset management, an industry report 7 estimates the number of high net worth individuals and their financial wealth in asia combined to be about the same

expertise, and skill sets. take for example, a client adviser working in a wealth management function. ten years ago, maybe he was only expected to offer advice on simple loans and basic investment products. today, the client is more sophisticated and demanding – he expects more comprehensive bis central bankers ’ speeches and customised wealth management solutions. the banker must be able to offer advice on alternative investments, options for intergenerational wealth transfer, and risk management strategies. in short, he needs much more depth. second, cross - functional adaptability. job functions and business lines are no longer as static and predefined as they used to be. it is increasingly important that finance professionals are exposed to a broader range of business areas. movement across business lines generates fresh perspectives that could in turn help to drive innovation and identify new areas of competitive strength. a compliance professional, for instance, may start off on compliance matters that pertain to credit activities. over time, it would be useful to widen his compliance knowledge in other areas of business such as capital markets. this broader exposure will help him to think about compliance and risk management issues across different functions of the bank in a more consistent and coherent fashion. such a capability will be a key asset when taking on larger functions and responsibilities in the bank. third, asian knowledge and expertise. asia is a diverse mix of economies. they are at different stages of development, with different financing needs and different regulatory and governance structures, not to mention different cultural norms. to operate a successful regional business franchise, finance professionals will need a deep understanding of these differences and know how to navigate the different terrain. take for example, a corporate banker, who may be advising the treasurer of a singaporebased multi - national corporation with operations in the region. each jurisdiction may have different rules and regulations that could impact the cash management and credit needs of this client. the banker must therefore have deep regional knowledge and strong networks to deliver solutions for this client. gaining exposure to asian markets will therefore put him in a better position to assume greater responsibilities over time. our ecosystem to develop human capital mas wants to see more of our finance professionals in singapore build up these three dimensions of expertise. and there is a strong ecosystem in singapore to nurture this process. first, mas and the institute of banking and finance have established a set of industry standards for asian financial practitioners, through the financial industry competency standards ( fics ). • this offers finance professionals a clear roadmap for building