2005, compared with only 6. 5 % in 2004, reflecting the consumers'preference for selected products to be made available through this channel. while product offering among takaful operators will eventually converge, the consumers ultimately expect speed in service delivery, simplicity in dealings, stretching or going the extra mile in satisfying customer's needs and unquestionable integrity. thirdly, malaysia still has competitive advantage in terms of takaful and is well - positioned to be a takaful and retakaful hub in this region. during the past two decades, we have seen the gradual opening up of takaful operation in many jurisdictions throughout the world, primarily in islamic countries and countries with large muslim communities. in this period, malaysian takaful industry has gained significant attention with the remarkable growth rate recorded domestically and in other countries as far afield as saudi arabia. malaysian takaful industry alone successfully garnered approximately 26 % of global takaful contributions and our takaful operator has been recognized as among the leaders at the global front. this strong performance is anchored by the strong legal, regulatory and shariah framework governing the industry, with full commitment of the government to position malaysia as a thriving international islamic financial centre. major initiatives, such as the recent establishment of a well financed inceif, or the international centre for education in islamic finance, are clear indication of the efforts to enhance talent and human capital development, an essential element to drive innovation and sustain market competitiveness of the industry. t he dynamism and viability of the takaful industry in malaysia that is supported by sound enabling environment have already drawn significant attention of m any strong international players seeking the opportunity to be part of the malaysian takaful industry. the advancement and progress that have been achieved thus far have provided competitive advantage to our malaysian takaful operators and opened up significant opportunity for our players to venture further abroad and become stronger global players, insyaallah. against this backdrop of growing opportunities and challenges, it is imperative for the takaful operators to enhance their institutional capabilities and operational efficiency in order to strengthen their competitive position in responding to the ever changing environment. it is our aspiration to see commerce takaful berhad emerges as an effective and progressive takaful operator with strong presence in the domestic financial landscape and acts as among the anchor players to expand takaful business at the global front. the challenge then is for the leadership to chart a clear strategic direction at the group

be concluded by next year. in the area of financial markets, an implementation plan for an integrated capital market has been developed to enhance market access, linkages and liquidity. asean has also made bis central bankers ’ speeches significant advancements in the areas of supporting financing for infrastructure development, as reflected by the establishment of the asean infrastructure fund in 2011. notwithstanding these developments, a crucial driver for greater financial integration within the core of asean financial systems is the banking sector. asean banks have a significant role in supporting the financial integration process. over the recent decade, we have witnessed the rising prominence of asean financial institutions within the region, driven by the growing business fundamentals in the region and the strengthened capacity of the financial institutions. asean commercial banks are predominant mobilisers of financial funds, as our experience shows, the banking sector is the most matured component in the financial sector of most jurisdictions. the banking sector therefore serves as an important conduit to increase connectivity among all asean nations and in fostering financial integration. towards this end, the asean central banks have endorsed the asean financial integration framework in 2011 and are in the final stages to launch the framework for banking sector integration. this will pave the way for a more meaningful presence of qualifying asean banks within the region, while promoting regional financial stability. recognising the diversity of asean economies and the varying stages of financial sector development, the framework allows flexibility for asean countries to participate in the integration process based on their readiness and willingness. under the framework, qualifying asean banks that have the capacity and that are well managed will serve as the regional standard bearers, and will be accorded more flexible access into regional markets. greater flexibilities will also be given to facilitate the regional expansion plans of qualifying asean banks to become important conduits of financial intermediation in the region. tremendous opportunities can be harvested from this new framework. hence, i welcome and look forward to the greater participation by financial institutions from all asean countries in this process. imperatives for banking sector going forward at this juncture, let me turn to imperatives for the banking sector going forward. there is a fundamental rethinking of banking by the international community in the aftermath of the recent global crisis. these are both driving and shaping the raft of reforms at the global level. i would like to touch briefly on four developments which could serve as a foundation for sustainable banking in the medium and longer - term. first, is for reduced complexity and increased transparency in