compared to 10. 3 % for conventional insurance. with the proliferation of players and products, and the rapid pace of development of the sukuk market, malaysia's takaful sector experienced an average annual growth of 20 % from 2003 to 2008. today, the takaful industry accounts for 11. 5 % of the overall insurance premiums. takaful companies in malaysia have also ventured into international markets to expand their business. this positive outlook is expected to continue with the impending entry of new takaful players as well as from the increased participation of international industry players in the takaful market. of importance is that the industry is well supported by a robust legal and regulatory framework that upholds shariah principles. in the aftermath of the global financial crisis there has also been a rethinking of the regulatory structure of the financial system. the crisis has exposed serious shortcomings in the supervisory architecture. increased consideration is being given to a more integrated approach to the prudential regulation of the insurance industry together with the other segments of the financial sector. with the growing significance of the insurance industry, this would result in more consistent prudential standards for regulation. in addition, there has been an ongoing convergence in the financial sector as traditional boundaries continue to be eroded by changes in institutional structures, shifting legal barriers and product innovations. the proliferation of conglomerate arrangements have also increased the need for more consistent regulatory approaches across industry boundaries to reduce the prospect of regulatory arbitrage and inefficiencies. france and germany have recently made announcements on the consideration to place the supervisory responsibility of the insurance sector with the central bank. this has however, drawn some resistance from insurers on grounds that " the concentration of responsibilities would create new conflicts of interest for the financial sector ". bank negara malaysia has been the supervisory authority of the banking industry since its establishment in 1959 and for the insurance industry since 1988. this integrated approach within the central bank has enabled us to form a more complete assessment of the risks to financial stability while ensuring consistency in the treatment of risks across the different industries to avert risks to the overall financial stability. the rapid pace of changes in the global economic and financial environment requires industry players to continually upgrade their expertise. cooperation in this area between industry players can contribute towards bringing the insurance industry to the next frontier. since its establishment in 1964, the federation of afro - asian insurers and reinsurers has fostered a strong cooperation among insurance industry players in

zeti akhtar aziz : building a progressive islamic banking sector - charting the way forward speech by dr zeti akhtar aziz, governor of the central bank of malaysia, at the seminar on 10 - year master plan for islamic financial services industry, “ building a progressive islamic banking sector charting the way forward ”, putrajaya, 22 june 2005. * * * " the islamic financial services industry is now at the threshold of its next stage of development. this decade has seen significant progress being achieved. islamic finance has now gained wide acceptance as a form of financial intermediation. the sustainability of this progress, however, demands due attention to the future - to look beyond the near term, and to take a longer - term perspective into the needs of the future and to evolve an islamic financial system that will best serve these needs. an essential part of this process is the clarity of the vision and the objectives that are to be achieved. this provides the starting point for the formulation of a master plan which defines the blueprint for the future development of islamic finance. while envisioning the future will provide the strategic focus and the common goal to be achieved, of greater importance will be the actions that need to be taken to make it happen. " your excellencies distinguished guests, ladies & gentlemen, i am most honoured to be invited to speak at this seminar on the ten - year master plan for the islamic financial services industry organized by the islamic development bank and the islamic financial services board to discuss the key issues and considerations in the formulation of a master plan for the development of islamic banking and finance. our goals are to develop an efficient, progressive and comprehensive islamic financial system that is able to contribute to the overall growth process and development. in this first session on the banking sector, the focus of my address will be on the blueprint for building a progressive islamic banking sector. this will include a discussion of the building blocks that are necessary to provide the foundations on which subsequent enhancements can be built. i will also take this opportunity to share with you malaysia's experience in formulating a ten - year financial sector master plan which was launched in 2001, and our experience in the implementation of the plan, in particular, for the development of the islamic banking sector. the need for a master plan islamic finance is now taking on a new dimension to meet the changing requirements of consumers and businesses ; to participate in a more liberalized and globalised environment and to become increasingly more internationally integrated. the