will be increased complexity in identifying the risks which will in turn complicate the process of risk management. the increasingly integrated and liberalised markets will also expose our porous economies to greater external influences and to contagion risks. a higher level of vigilance is thus required to allow for pre - emptive policy measures in a timely manner. this will require adequate levels of cooperation among the regional regulators in addressing potentially contagion systemic risks and ensuring regional financial stability. the deepening of co - operation between the nusantara's monetary and regulatory authorities is thus a key factor in the development of a robust integrated platform. enhanced cooperation will promote greater resilience and reduce regional vulnerability to external developments. there are now various regional mechanisms in place to undertake regional surveillance, to facilitate the exchange of information, to enter into greater engagement on issues affecting the region and in developing regional financial markets. in addition, frameworks for enhanced regional risk management, crisis management and resolution are also being put in place. with greater financial integration, the region will be able to leverage on the advantages of economies of scale, innovation and more importantly place greater reliance on the cumulative strengths that resides within the region including our financial resources, skills and knowledge. it will also better position the region to collectively address emerging issues and challenges faced by the region taking into consideration the region's socio - economic context. ladies and gentlemen : while islamic finance is gaining global interest and acceptance, the world's most populated muslim region in the world, the new nusantara offers opportunities for the accelerated expansion of islamic finance. the intrinsic nature of islamic financial structures encourages stability. islamic principles require that the financial transaction be supported by genuine economic transactions. to further reinforce this, the governing shariah principles also serve as a built - in self - regulatory mechanism that insulate islamic instrument issuers from unproductive, speculative and unethical elements and thereby contributes to the stability of the financial system. historically, capital financing and investment flows into the nusantara region have generally been sourced from the developed financial markets. while we may see continued growth in short term capital inflows from these traditional sources, the more competitive global environment provides no assurance of the sustainability of such longer term investment flows. meanwhile, our own south east asian region and that of north asia and the middle east countries continue to have high surplus savings seeking opportunities for investment and new asset - classes for greater risk diversification and improved returns on their investments. hundreds of years

have on the poorer economies. similarly, the disproportionate effect these developments are having on the poorer segments within a particular economy. this crisis thus brings to the forefront a number of issues concerning financial inclusion. firstly, while the crisis demands action with great urgency, the policy response to restore the functioning of the financial system and to get growth in the economy again, there also needs to be a continued commitment to the financial inclusion objective. this becomes all the more vital given the more adverse implications of the crisis on the poor segments in the economy. secondly, while the policies and regulation of financial inclusion are essential to ensure the soundness and sustainability of an inclusive financial system, of equal importance are the policies, instruments and framework to deal with distress in an inclusive financial system. this is to ensure that the strategies for resolution will provide a total solution that addresses the entire spectrum of the financial system, from that which is large and highly connected with systemic implications to that which is small and highly vulnerable. this includes measures relating to relief and support and the mechanisms for resolution to ensure the sustainability of an inclusive financial system even during unstable financial and economic conditions. in recognising the importance of financial inclusion, the united nations established the united nations advisory group on financial inclusion in 2006. the group advises the united nations and member states on issues relating to the advancement of the financial inclusion agenda on a global scale. since its establishment, many successes have been achieved. these include increasing the public awareness on the importance of financial inclusion, assisting governments in the design of regulatory systems that facilitate the creation of financial services for the poor, encouraging the of use of holistic measures to gauge the progress of financial inclusion, collecting and disseminating best practices, collaborating with the private sector to leverage on the talent and technology to further advance financial inclusion and to promote research that will galvanise new initiatives. in malaysia, financial inclusion is a high priority in our national agenda. since the establishment of the central bank, there has been a conscious policy to have an extensive commercial banking branch network across the country, to ensure the outreach, in particular, to cover the non - urban areas. malaysia now has 10. 2 branches for every 100, 000 individuals as opposed to the global median of 8. 4 branches for every 100, 000 individuals. in malaysia, more than 80 % of the population also have some form of savings account. this has also contributed to the financialisation of savings in the country. deposits as a percentage of