offer to study for the ba degree in law at the prestigious university of cambridge. following their pre - university programme, justin aspires to be a doctor and nurizati is keen to read dietetics. i am confident that all of you will do your best and will contribute to the future of our nation. in addition to the kijang emas scholarship award, every year the bank also awards scholarships to about 40 high achieving spm students for them to pursue their undergraduate studies abroad with the objective of them being part of the bank ’ s future talent pool. the bank has put in place a structured, holistic and collaborative scholars ’ development programme to support all of our scholars throughout their studies. the programme aims to develop high - quality and well - rounded scholars with leadership qualities that will be the next generation of young talent who will be the leaders of tomorrow for the bank and our nation. with regard to the achievement of our scholars enrolled in top university, i am glad to share with you that this year 3 of our scholarship holders will be entering the university of pennsylvania to pursue their undergraduate studies in economics and finance, 1 scholar to pursue engineering at the university of cambridge and another scholar to pursue philosophy, politics and economics at the university of oxford. we wish all our scholars the best and to make the bank proud of your excellence. bis central bankers ’ speeches

malaysia has also continued to progressively liberalise its already open financial system to further enable free flow of funds into and out of the system. this transformation has opened up the potential for a range of new opportunities for participation in the financial sector in malaysia and for facilitating greater financial flows within the region. new linkages and opportunities offered by islamic finance this decade has also witnessed a rapid evolution and global expansion of the islamic financial services industry. malaysia has developed a comprehensive islamic financial system that operates in parallel with the conventional financial system. more recently, its international dimension has gained significance as islamic finance is becoming an increasingly important part of the international financial system. in doing so it is contributing to strengthening international interlinkages between financial markets and systems that is more widespread and inclusive. the number of islamic financial institutions worldwide has increased to more than 300 spanning over 75 countries. total assets of the islamic financial system are estimated to exceed one trillion us dollars. it is among the fastest growing financial segments in the world with an estimated annual growth in the region of 15 to 20 percent. there is now a growing strong demand for islamic financial product in the global market, far exceeding the current availability of financial products and services being provided by the islamic financial institutions. the global development of the islamic financial system has become particularly important in this more challenging financial and economic environment. as the international financial system becomes more diversified and as this new form of financial intermediation develops, it has presented businesses with alternative means of raising funds while investors are presented with new asset classes. it has contributed towards greater diversification of risks. more importantly, the very fundamental requirement of islamic finance is that it requires an underlying economic transaction thereby avoiding emphasis on speculative purposes. it also prohibits the commoditisation of risks, which leads to its proliferation through multiple layers of leveraging and disproportionate distribution. islamic finance as a form of financial intermediation will also contribute towards enhancing the efficient mobilisation and allocation of funds across regions. this will bring about strengthening of a more wide spread and inclusive global financial integration. the greater diversification of risks also contributes towards promoting international financial stability. the transparent nature of islamic financial contracts and the need for underlying economic transaction reinforces the stability of the islamic financial system. going forward, in the current liberalised and globalised environment, islamic finance is at the threshold of a new dimension in strengthening financial interlinkages between nations across the globe. just as the old silk road in the 14th century offered a route that