. the growth of the islamic bond market in particular, in the current environment also reflects its cost effectiveness. an increasing number of multilateral agencies, government agencies and the corporate sector including multinational corporations have relied on the sukuk market as a source for raising financing. in malaysia, shell mds sdn. bhd. issued the world ’ s first ringgit - denominated corporate sukuk in 1990, amounting to rm125 million. the issuance of a rm3. 5 billion programme sukuk by tesco stores in 2007 witnessed the first sukuk issuance by a british owned mnc, while toyota capital services, a japanese mnc, issued a rm1 billion programme in 2008. there has also been a growing trend for multi - currency sukuk issuances in asia, with the latest landmark issuance of the world ’ s first renminbi sukuk issuance in 2011 being issued in the malaysian market. these multi - currency issuances have attracted international investors to participate in this market. as an asset class, there are now a wide range of structures, size and different maturities. recent examples in malaysia include the plus berhad ’ s issuance of a record size of rm30. 6 billion or equivalent to usd9. 7 billion programme, with maturities ranging from 5 to 27 years. this also facilitates the potential for diversification of portfolios. the islamic capital market has also been an avenue for businesses to raise equity financing globally. shariahcompliant corporations that are listed in major global islamic stock market indices, such as the dow jones islamic market indices and the ftse global islamic index, are able to enhance their profiles among the prospective investors, including those with inclination towards socially responsible investment. in malaysia, similar listing opportunities are available through the ftse hijrah shariah index and the ftse bursa malaysia emas shariah index for shariah - compliant investment, that has been designed to provide a broad benchmark for investors that wished to invest in shariah - compliant stocks. malaysia operates a dual financial system that comprises the conventional and the islamic financial system. businesses are able to select the financial offerings that best serve their requirements. while malaysia has progressively liberalised our financial system, the liberalisation of the islamic financial system has been at a more rapid pace. the motivation for this is to forge greater international economic and financial linkages. liberalisation of the conventional sector

zeti akhtar aziz : islamic finance – new frontiers in financing the economy keynote address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the eu - malaysia chambers of commerce and industry ’ s ( eumcci ) quarterly financial panel discussion 2012 “ islamic finance – new frontiers in financing the economy ”, kuala lumpur, 8 march 2012. * * * in this new phase of globalisation in which economies and financial systems are increasingly becoming more interconnected, we are seeing the emergence of several new trends in trade and investment flows. while there has been a slower expansion in world trade and investment flows in the aftermath of the global financial crisis, cross - border trade and investment activities among emerging economies have been increasing significantly. asia is very much part of this changing pattern in world trade and investment activity. in asia, strong domestic demand, supported by resilient financial systems and well developed financial markets have well intermediated these international flows. the most pressing challenge confronting the current global economy is to generate growth and employment. it is particularly important for the crisis - affected economies that growth resumes and is sustained, while addressing fiscal imbalances, public and private sector overindebtedness and the financial sector impairment, the solutions to which will most likely result in slower growth. while supportive domestic policies will thus be necessary to support the growth, also important is the potential growth that can be gained from trade and investment with other parts of the world. for the countries in the asean region, the partnership with the eu region has expanded steadily over time, and has continued to evolve and strengthen. there is significant potential to expand such trade and investment links between both the eu and asean regions. global corporations, including the eu and asean multinational corporations ( mncs ), have contributed to maximising the mutual benefits from such relationships. in malaysia there are currently more than a thousand multinational corporations from more than 30 countries. many are from the eu region. initiatives that continue to lower the barriers between our respective regions are also set to strengthen the growth of such strategic partnerships. it is my pleasure to be here at this quarterly financial panel discussion, organised by the eu - malaysia chamber of commerce and industry, to speak on the role that islamic finance might have on facilitating greater trade and investment between our regions. islamic finance, which was previously domestic - centric, is now increasingly providing financial solutions for cross - border trade and investment. progressive liberalisation has facilitated the internationalisation of islamic finance.