prevalent practice of commission - based compensation, it is not surprising that the industry is still often perceived as one that pushes products, rather than provide solutions. the introduction of the balanced scorecard, which is currently being piloted among financial advisers, is to help address this perception. with the scorecard, remuneration of intermediaries will be more closely aligned to the suitability of products for prospective customers and the overall quality of service. i believe that such a shift in incentive structures will encourage advisers to build more enduring relationships with customers. more can be done beyond the realm of regulation. in other countries – such as australia, united kingdom and india – financial advisers are voluntarily adopting a fee - based model. the combined effect of increased customer awareness and bargaining power are also pushing financial advisers to reduce their commission - based income. in india for example, several firms have successfully shifted to largely fee - based models. this is, however, not a painless transition. in doing so, some have parted ways with customers who were unwilling to pay these fees. i believe that the move towards a fee - based model is an important signal that the advisers ’ incentives are aligned with those of their customers. to ensure a successful transition to a feebased model, financial advisers will need to enhance their value proposition to ensure that customers receive the standard and breadth of advisory services that would be worth paying for. 3 / 5 bis central bankers'speeches this is no easy undertaking, but i am confident that it is one that our financial advisory firms will be able to achieve. adaptability to change at the beginning of my remarks, i had highlighted three key trends affecting the industry. how well financial advisers respond to these developments will determine the industry ’ s relevance in the years to come. this brings me to the third feature of a trusted financial adviser – the adaptability to change. traditionally, financial advisers have been a staple for high net - worth individuals. gen ys have rarely been reached, reinforcing the unfortunate perception that financial advisory services are an “ outdated ” concept, or simply not for younger generation. this must change going forward, as this generation represents a large untapped market for financial advisers, and will continue to grow in importance as their wealth increases over time. whether financial advisers adapt successfully in reaching out to gen ys depends on their ability to understand the unique characteristics of this demographic. gen ys actively compare products using a wide range of information, such as online research, social media and peer

to these players. players, therefore have the option in participating in the mifc either by being licensed under bank negara malaysia to benefit from the tax holiday for 10 years under the income tax act and fully benefit from the double tax agreement, or alternatively to be licensed under lofsa and be taxed accordingly under the labuan offshore business activity tax act. the second strategic objective is activities generation - that is, to promote malaysia as the preferred choice as the centre for the offering of islamic financial services. associated with this objective is building the pool of talent and expertise, and to ensure that the environment is cost competitive and conducive for product innovation and product offering. the measures to address this include : • first, setting up the international centre for education in islamic finance ( inceif ). this represents the malaysia's investment in human capital to support the global development of the islamic financial services industry ; • second, establishing a shariah endowment fund for scholarships, research and international shariah dialogues for the regional and international shariah communities to enhance the harmonisation of shariah interpretation and practices ; • third, an additional 20 percent exemption in stamp duty on islamic financial instruments on top of the stamp duty exemption that is currently available to ensure tax neutrality ; • fourth, encouraging malaysian - owned banks including islamic financial institutions to expand their operations abroad by allowing the profits of the newly established branches overseas or remittances of new overseas subsidiaries to be given income tax exemption for 5 years. this is to enhance market access and business networking, and also to widen the customer base and to generate new sources of businesses in uncharted territories ; • fifth, liberalising the foreign exchange administration rules to allow multilateral development banks and multinational corporations to issue ringgit denominated instruments in our domestic bond market. in further liberalising the market, i am pleased to announce that resident and foreign issuers will now be able to raise foreign currency - denominated bonds, in particular, islamic bonds, in the malaysian capital market. the foreign issuers eligible to take this opportunity are the sovereigns, quasi - sovereigns, multilateral development banks, multilateral financial institutions and multinational corporations, while resident issuers are the local mncs. this represents part of bank negara malaysia's continuous efforts to promote the development of the malaysian bond market, and to enhance malaysia as a centre of origination, distribution and trading of sukuks. the issuance of foreign currency denomi