. we aim to further increase support for financing to businesses that can develop and scale green technologies and processes, or that are making meaningful efforts to transition to a low carbon model. financial institutions are also ramping up their own capacity to advise and provide technical support to smes on their transition journey, including in risk management and disclosure practices. these efforts are crucial to ensure alignment between banks'business and risk strategies with the transition path of smes. ladies and gentlemen, let me conclude my remarks. sme financing is an ongoing journey – and a crucial one for economic development and progress. although the share of bank financing to smes is high, relative to their current contribution to gdp, our goal is not to claim victory by a finite point in time, but rather to ensure, through effective policy interventions, that the broader financial system " beyond banks and beyond traditional forms of lending " is working to adapt and respond to sme financing needs. to do this, we will continue to engage closely with the sme community to understand your issues and challenges, and where relevant, to support your progress and development beyond financing. as these needs will continue to change over time, innovation is key. it goes without saying that we cannot do this alone. in any country, the agenda of uplifting smes calls for a whole - of - nation approach. government and financial policies play a critical role, but so does the willingness of banks to evolve current approaches. smes themselves also need to more actively engage in strengthening their own financial and business capabilities. bnm remains committed to working closely with partners within the industry and government. we will continue efforts to crowd - in private sector financing, whilst highlighting policy considerations and necessary reforms 4 / 5 bis - central bankers'speeches in the process. and we count on industry associations and experts to continue playing an active role as an aggregation point for smes, helping to raise awareness, co - create solutions and disseminate vital information. on that note, i thank you very much for your attention. 1 source : bank negara malaysia 2 source : bank negara malaysia 3 source : bank negara malaysia 5 / 5 bis - central bankers'speeches

operates in parallel with the conventional financial system. the malaysian islamic financial system is founded on three major strategies. firstly, the islamic financial system has been evolved as a comprehensive financial system that is diversified in terms of its institutions, markets and players. the islamic financial system comprises the islamic banking institutions, the takaful industry, the non - banking institutions and the islamic money and capital markets. the supporting financial infrastructure includes the robust regulatory and supervisory framework that is reinforced by the legal and shariah framework, the payment and settlement systems and the mechanism for the liquidity operations by the central bank. the assets of the islamic banking system now comprise 16 % of the market, while the takaful sector has garnered 7 % market share. significant progress been achieved in particular in the islamic capital market where the outstanding amount of islamic private securities amounted to usd79 billion or 54. 3 % of the total outstanding private securities in the market. the number of shariah - based unit trust funds have also increased to 136 with a net asset value of over usd5. 2 billion while 85 % of the listed malaysian stocks are shariah - approved counters. the second strategy is to accord greater emphasis on the enabling environment for increased innovation in the islamic financial industry. the product range in islamic finance has now expanded into a broad spectrum of innovative instruments, including investment and equity linked products based on musyarakah, mudarabah and ijarah. these products are competitive both in terms of product structure and pricing. the enhanced depth of the islamic financial markets, in particular, the sukuk market, has increased the attractiveness of the islamic financial instruments as an asset class for investment. the drive for innovation has been supported by the investment in human capital development. a sufficient pool of the talent and expertise has been key to the development of the islamic financial hub in malaysia. the international centre for education in islamic finance ( inceif ) was established in 2006. inceif which has an international faculty and students from more than 40 countries is focused on programmes for islamic finance professionals and specialists in islamic finance. the first group of students for the chartered islamic finance professional qualification, cifp, offered by inceif, is expected to graduate at the end of this year after completing a three year programme that includes an internship with an islamic financial institution. inceif also offers a masters and phd programme in islamic finance. to promote research in islamic finance, the international shariah research academy ( is