muhammad bin ibrahim : major milestone for financial integration in asean remarks by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the luncheon, hosted by bank mandiri, kuala lumpur, 6 july 2017. * * * i am pleased to be here today to deliver the remarks for the lunch gathering hosted by bank mandiri. i am confident that bank mandiri will be the first qualified asean bank in malaysia, a major milestone for financial integration in asean. indonesia and malaysia – neighbours and friends let me start with the close relationship between both of our countries. our relationship extends beyond our geographical proximity but is bound by our similarities in language, culture and of course – food. these natural forces have allowed us to forge and strengthen a strong history of cross - border trade and investments. businesses from both countries have also strongly committed to invest and contribute to each other ’ s socio - economic development. malaysian companies have made significant investments in indonesia, amounting to usd12. 1 billion at end 1q - 2017. these investments span the financial services, telecommunication and agriculture sectors. in fact, the collaboration between malaysian and indonesian corporates gave birth to malindo airways sdn bhd in 2012. it speaks volume of the partnership and close cooperation between our two countries. indeed this venture will further open up asean skies and expanded the close ties between the people of indonesia and malaysia. over the last few years, indonesian firms have also started to increase their presence in malaysia. a significant step forward came last month when our respective trade ministers announced a target for bilateral trade of usd30 billion in the coming years. this is a doubling of usd13. 8 billion recorded in 2016. i strongly believe that this target is very much achievable and with the closer banking relationship our trade will further flourish. reflecting on our journey towards asean integration our partnership in asean marks another integral part of our long standing and deep relationship. there is always the risk that many may take asean integration for granted. if we reflect closely on our journey and how far we have come, is not by mere coincidence. it is a culmination of the collective vision, commitment and conviction to realise the benefits from deeper integration. where we stand today is the true embodiment of the spirit of asean of mutual trust and close cooperation. we continue to believe that this is the path forward for our region, and one that requires us to further deepen our strong ties to meet the challenges of the future

##ged segments, has been flourishing in the recent years. in 2023, these affordable and accessible protections have provided coverage to almost 970, 000 individuals. we are also pleased to observe developments within the industry that support bank negara malaysia's financial sector blueprint 2022 - 2026 vision to mainstream social finance, which now has use cases in the takaful sector. before this, it is predominantly use cases in the banking sector. the innovative offerings of social blended takaful products enables a confluence of private and social funds where participants have the option to use their takaful benefits to contribute towards creation of a sustainable community. 1 we hope to see more synergistic collaborations where philanthropic capital blends with commercial funding to develop impactful protection solutions. these efforts would ensure continuous protection for vulnerable segments, including micro - entrepreneurs, gig workers, and the ageing population. limited access to insurance and takaful for climate adaptation and resilience poses a significant challenge for malaysian businesses, particularly smes. this limitation hinders their ability to effectively manage flood risks - malaysia's most frequent natural disaster - and slows recovery efforts, as insurance payouts are a crucial source of funding. furthermore, common obstacles such as lengthy payout processes, inadequate product offerings, and insufficient coverage exacerbate the problem. 2 at our end, bank negara malaysia remains committed to providing an enabling environment for the industry to test and introduce innovations. industry players are urged to embrace the aspirations of the recently issued exposure draft on broader application of ta ` awun in takaful. this provides a facilitative framework for industry players to explore new takaful models in promoting social cohesion and wealth distribution. for areas that may require regulatory flexibility, we welcome interest in tapping the financial technology regulatory sandbox. this allows innovations to be piloted and refined, thus accelerating the integration of vbit in product solutioning. you may be interested to note that the sandbox now incorporates a green lane. this accelerated track offers a simpler and quicker path for financial institutions with a strong track record in risk management to test innovative solutions that are facing regulatory impediments. for industry players aspiring to drive greater market competition via digitalisation, the formal application window to carry digital takaful business will be open on 2 january 2025 until 31 december 2026. we welcome prior consultation for those interested. improvements to quality of services and conduct efforts to diversify products and solutions must be paired with