zeti akhtar aziz : 10th year anniversary of the establishment of the islamic financial services board speech by dr zeti akhtar aziz, governor of the central bank of malaysia, at the islamic financial services board ( ifsb ) 10th anniversary dinner, kuala lumpur, 16 may 2013. * * * it is my great pleasure to welcome your excellencies and distinguished guests to this ifsb 10th anniversary dinner, organised in conjunction with the 10th ifsb summit. tonight is a landmark celebration of the 10th year anniversary of the establishment of the islamic financial services board ( ifsb ), as we commemorate a decade of milestones and achievements of the ifsb and pay tribute to its members and industry stakeholders that have provided undivided support to the board. bank negara malaysia is indeed honoured to have the opportunity to host this 10th ifsb summit, which is exactly ten years since we hosted the ifsb inauguration in november 2002. we are also very pleased to welcome back the founding members and many of the industry leaders that witnessed the inauguration of the ifsb. we are very honoured to have your presence at this anniversary dinner. it was in the year 2000 that the discussion began on the merits of establishing a dedicated organisation to develop a separate and distinct regulatory framework for the global islamic finance industry. the aspirations of ten central banks and the islamic development bank – was to lay the foundation for the development of a sound and stable islamic financial system that will pave the way for its successful integration as a viable and credible component of the global financial system. a decade later, the ifsb has build a solid international reputation as a credible standard - setting body for islamic finance, with the ifsb charting its achievements in increasing regulatory cooperation, encouraging uniformity of regulatory frameworks and enhancing the monitoring of financial risks in the islamic financial system. the current global landscape of the islamic financial system, with enhanced stability and resilience that has contributed to the vibrant growth and internationalisation of islamic finance is a realisation of the aspiration and vision of the ifsb founding members. the efforts are largely attributable to the unwavering commitment and dedication of the members of the ifsb that have relentlessly pursued the goals. the increasing support for the ifsb, signified by its continuous growth of membership over the decade would ensure a progressive continuity in the work of the founding members. there are now 187 members from 43 jurisdictions. malaysia is honoured to host the ifsb here in kuala lumpur, and is committed to

are a few things that we could do for the smes. first, we can lower the financing cost for smes which obtain guaranteed financing under cgc. on the average, smes are being charged between 10 to 12 percent. this is about blr plus 5 to 6 percent. the rate imposed is much too high. it seems that pricing mechanism doesn ’ t price properly the guarantees given by cgc. we ought to work on this. on the part of cgc, we need to response quickly to the banks when guarantees are being called upon. an ideal situation is akin to an irrevocable undertaking where once a guarantee is called upon, it will be made good immediately. second, to intensify promotion and awareness program on cgc products and services. cgc needs to work closely with the trade associations and generate more media exposures through radios and tvs. make cgc a household name among the smes. third, expand further advisory services, its reach and contents. not all smes require financing, some might need more “ hand holding ”, and rather than access to financing above. lastly, come up with new and specific guarantee products for new growth area, start - ups and young entrepreneurs. existing guarantee products might not be suitable to meet the needs of these groups. cgc should embark a study on this matter and come up with an action plan. before i end my speech, i would like to express my heartfelt congratulations and appreciation to the board, management and staff of cgc for 40 years of service to the malaysian smes. it is our greatest wish that cgc will continue to walk and grow alongside our smes in our effort to make our country prosperous. bis central bankers ’ speeches