that is now more diversified with well developed financial markets and broadened product offerings, that is more competitive with home - grown regional players, that is more inclusive with higher levels of banking and insurance penetration, and with improved financial strength indicators as financial institutions are better supported by strengthened governance and risk management standards and practices. the development of islamic finance has also made significant strides both in the domestic and international front as malaysia evolves as an international islamic financial hub. enhancements to the payment infrastructure have also supported the increased use of epayment channels. with these building blocks in place, the financial system has also been progressively deregulated and liberalised. the more recent liberalisation to allow for greater foreign participation in the domestic financial markets and increased foreign presence will enhance further our financial and economic international linkages. as we move into the final phase of the masterplan, we are confident of the strength and resilience of the domestic financial sector to face greater competition and benefit from the liberalisation measures recently announced. we have received strong interest in the new licences from asia, the middle east, europe and the united kingdom that bring with them strong value propositions that will add significantly to the depth and breadth of the financial sector in malaysia. in the insurance sector, greater competition will emerge from the progressive deregulation of product rates. the current reforms in the motor insurance sector will introduce far - reaching changes in a key segment of the industry, with significant implications for the business strategies of insurers and their approaches to risk management. with the introduction of a new scheme for basic motor insurance cover, pricing for non - statutory motor insurance will be gradually liberalised, thus removing price distortions. this will allow rates to adjust to underlying risk factors. this will also be accompanied by a holistic review of motor insurance practices and the supporting infrastructure to enable more scientific underwriting and improve claims management. industry groups have been formed to study these issues and make recommendations for the smooth transition to this new and more competitive environment, while at the same time improving practices across the entire value chain of the motor insurance sector. the groups have made good progress and the recommendations are expected to be finalised for implementation in the second half of 2010. a new blueprint for the financial sector beyond this international financial crisis and economic recovery, a global shift is taking place that is resulting in an increasingly multi - polar world. in this new phase of globalisation, the concentration of economic power in the global economy will become more dispersed

abdul rasheed ghaffour : revitalising the economy via islamic finance speech by mr abdul rasheed ghaffour, governor of the central bank of malaysia ( bank negara malaysia ), at the 19th kuala lumpur islamic finance forum 2024, kuala lumpur, 5 november 2024. * * * it is an honour for me to be here at the 19th kuala lumpur islamic finance forum. for over nearly two decades, kliff has been a mainstay in the annual calendar of events surfacing global islamic finance perspectives, which resonate with contemporary developments. this year's forum, with the theme'revitalising the economy via islamic finance ', again - fosters dialogue and collaboration among stakeholders - to cultivate ideas and address the challenges of our time. islamic finance to elevate its role and impact in revitalising the economy allow me to begin by drawing some reflections and lessons from our rich islamic history. right from the start, the principles of ethical trade and equitable wealth distribution - have always been foundational in islamic society. back then, when slavery was prevalent, islam called for the move away from involuntary and slave labour - to be in favour of productive labour. as reported by abdullah ibn umar, prophet muhammad exhorted his people to - " pay the worker's wages, before his sweat gets dried " 1. such a progressive move was not only virtuous, but also a significant labour market reform. in fact, we see in the history of islam, many important developments - which led not only to the boosting of productivity, but also the emergence of innovative business techniques - laying the foundations for the modern economic system we have today. these include limited partnerships or mudarabah, the earliest forms of credit ( qard ), as well as the practice of mutual aid and cooperation - through zakat and waqf that enable resources to be redistributed and utilised, for the common good. these advancements strengthened social welfare - and in turn - encouraged cooperative enterprises and community - driven initiatives fast forward to today, i believe that the islamic financial sector, must carry on this tradition of courage and ingenuity - by continuing to challenge the status quo and to unlock next - level frontiers in financial practices and offerings - while remaining anchored on our fundamental values. to follow in the footsteps of our forefathers - in pushing the envelope in bringing about change, as we work to build and develop a more inclusive and