thus issue multi - currency sukuks or alternatively have the flexibility to swap domestic currency funding into other currencies. at this juncture, i'm also pleased to inform you that a malaysian corporation recently issued the largest - ever sukuk issue in the world amounting to equivalent usd4. 7 billion which was two times oversubscribed. this hybrid sukuk which has both equity and debt natures is one of the several innovative instruments that has been issued in the sukuk market. malaysia's development of islamic finance has contributed positively to our overall financial system in several respects. this has resulted to a more diversified financial system that has increased its overall resilience. secondly, it has increased our international linkages. thirdly, it has also contributed to greater financial inclusion particularly in the area of financing for small and medium scale enterprises and micro financing. then, enhanced with the in - built checks and balances, it contributes towards financial stability. finally, islamic finance has become a new area of growth that has become very vibrant in generating income, wealth and employment. opportunities in sukuk in the current liberalised and globalised environment, islamic finance is now at the threshold of a new dimension in strengthening financial inter - linkages between nations in the global economy. with the expanded scope of activities in islamic finance, the islamic bond market or sukuk market has fast become an important avenue for fund raising and investment activities. the sukuk market has registered a remarkable growth, increasing at an average annual rate of 40 percent with a current size of more than usd82 billion. the vast potential in sukuk market in the international financial system indeed represents the crest of a new wave of innovation in islamic finance. this is evidenced by the active participation of a great number of global players such as investment banks, islamic banks and securities firms in the issuance of sukuk. the sukuk market brings with it great benefits to both issuer and investors. for issuers that include government agencies, multinational corporations and multinational development institutions, sukuk plays a multi - faceted role in meeting different funding requirements ranging from large infrastructure and developmental projects to capital and business expansion. this is particularly important for emerging market economies. the middle east and asia currently represent the two fastest growing regions in the global economy. these regions are aggressive in their privatisation efforts and in the implementation of infrastructure and developmental projects. asia alone will be spending an estimated usd1 trillion

investors, including from the middle east, to leverage on malaysia as an investment gateway to tap the rapidly growing investment opportunities in the east asian region. thirdly, this partnership also serves to enhance malaysia as a centre of product innovation in islamic finance. indeed, conscious efforts have been made to ensure a conducive environment for innovation in malaysia, including the development of the necessary pool of expertise and talent to drive such innovation. within bank islam itself, there is a track record and brand name for innovation, with the development of new business models and product offerings. this partnership would thus contribute towards accelerating this process and towards serving as a bridge to strengthen the relationship of the islamic financial markets as well as the investment and trade ties between the west asian and north african regions, with east asia. strengthening the capital of a financial institution, however, is not the only factor that will determine its capacity and potential to perform. equally important is the quality of its talent, the systems that it has in place, in particular, its risk management and ict systems and its governance structure, its leadership and its corporate culture. thus, while this capitalisation exercise will put bank islam in a stronger position to tap new opportunities, all the other elements also need to be in place to enable the institution to realise its true potential. sound corporate governance and effective management of banking institutions are vital to ensure their effective and sound functioning. in particular, significant shareholders are expected to play an active role to ensure that capable individuals are appointed on the board and senior management of banking institutions. bank negara malaysia had as early as 2001 required the board and management of bank islam to undertake remedial actions on several operational and control weaknesses. when the weaknesses were not adequately addressed, the process of reconstituting the board and management of bank islam was initiated in 2003. in such an exercise, key shareholders are expected to be proactive in making prudent and responsible action to remove any member or employee that is found to be unsuitable or not having the required calibre so as to avoid a prolonged process in the reconstruction of the board and management of the bank. it needs to be recognized that the responsibility for the safety and soundness at the institutional level rests primarily with the board and the management of each banking institution and the key stakeholders such as the significant shareholders. institutional investors should also have an active role and make swift and bold decisions in ensuring that only capable individuals are appointed and remain on the board and senior management of banking institutions.