heng swee keat : the first shariah - compliant etf in singapore congratulatory remarks by mr heng swee keat, managing director of the monetary authority of singapore, at the launch of daiwa ftse shariah japan 100 etf at sgx centre, singapore, 27 may 2008. * * * president and ceo, daiwa asset management, mr michihito higuchi vice - president and head of listings, singapore exchange, mr lawrence wong distinguished guests ladies and gentlemen, good morning. i am pleased to join you at this ceremony to mark the debut of the daiwa ftse shariah japan 100 exchange traded fund ( etf ), the first shariah - compliant exchange traded fund to be launched in singapore. the daiwa ftse shariah japan 100 etf will provide retail and institutional investors the opportunity to access the japanese capital markets via a shariah - compliant product traded on the singapore exchange ( sgx ). etfs are one of the fastest growing asset classes in the investment funds industry. they aim to track the performance of indices and provide access to a wide variety of markets. as at the end of 2007, global assets managed via etfs are estimated to have increased by 41 % over the previous year to reach about us $ 800 billion while the total number of primary listings has increased by 64 % to 1, 171. there are currently 18 etfs listed on sgx covering regional markets such as the asiapacific and asean, and individual markets such as china, india, south korea, taiwan and japan, as well as alternative investments such as gold and commodities. these provide investors with the opportunity to access key asian markets, to diversify their investment portfolios and to execute their investment strategies. daiwa ’ s ftse shariah japan 100 etf marks a key development for our islamic finance industry. to facilitate the development of this growing industry, over the past few years, we have reviewed and refined our regulatory framework and tax structures. in february this year, the finance minister announced in the budget that a 5 % concessionary tax rate would be granted for income derived from shariah - compliant fund management, lending, and insurance & reinsurance. the tax exemption on income from sukuks that are qualifying debt securities will also be extended to all investors. a few weeks ago, mas announced that it will be developing a facility for the issuance of singapore dollar, sovereign - rated su

retakaful industry to expand in malaysia and optimise malaysia as a base for tapping global opportunities. in malaysia, the aspiration to achieve 4. 8 % to 5 % insurance and takaful penetration rate out of gdp has been outlined in the financial sector blueprint 2022 - 2026. latest developments in digital takaful, microtakaful, social and green finance, together with malaysia's changing demographic landscape towards ageing population present new growth areas in which retakaful can play greater role to spur further developments. indeed, takaful and retakaful markets are inter - dependent in terms of its growth and viability, similar to the symbiosis between insurance and reinsurance. as such, strong 1 / 3 bis - central bankers'speeches growth prospects for takaful means that retakaful also stands to reap its benefits if seized in a timely manner. however, while takaful is making strides in its development, there remains gaps in the retakaful market to serve as a tool of choice by takaful operators for managing their risks. this poses a question as to how retakaful ecosystem can be further strengthened to support takaful value chain. strengthening retakaful ecosystem to support takaful value - chain i believe with the comprehensive ecosystem and facilitative infrastructure in malaysia, which is reflective of a more mature islamic finance ecosystem, retakaful players in malaysia are well - positioned to serve both the global and domestic takaful value chain. the presence of major global retakaful players in malaysia, complemented by strong domestic retakaful players, further enrich malaysia's proposition as a global gateway for islamic finance as outlined in the financial sector blueprint 2022 - 2026. several dimensions which retakaful players can strive to grow in line with the mifc aspirations include greater diversification of risks with increased cross - border retakaful business within the region and beyond, as well as expansion of retakaful offerings in innovative segments which remain relatively untapped such as agriculture as well as climate and social resilience. however, i understand that doing so comes with its own set of challenges. this is where bnm commits to engage continuously with the industry players, to work together in addressing barriers and challenges that stunt developments or expansion of the industry. one such step that bnm has recently undertaken in the space of regulatory development includes providing clarity on shariah parameters on hajah ( need