9, 000 staff with the islamic financial institutions. they are also reinforced by the workforce of domestic and foreign conventional financial institutions. this expertise that resides in malaysia allows for the development of innovative products so as to ensure that the product design and structure, as well as the risk management aspects that are being rigorously addressed. there is also positive response from the local and foreign financial institutions to establish international islamic bank, international takaful operator, as well as international currency business unit to undertake international currency business in islamic finance in malaysia. to date, eight financial institutions have been granted approval to set up such international currency business units in malaysia. commercial banks and investment banks licensed under the banking and financial institutions act 1989 ( bafia ) are allowed to establish international currency business units to carry out islamic banking business under their existing entities. to enhance the delivery system to facilitate their establishment, an " executive green lane " has been accorded to expedite applications by expatriates for long - term employment passes with multiple entry visas. in addition, the foreign investment committee rules are also relaxed further to allow for 100 percent foreign equity ownership in these financial institutions. the mifc portal has also been launched as the primary source of comprehensive online information on the latest initiatives and developments, and enables convenient access to application forms, procedures and guidelines related to entrance and participation in the mifc. this portal, is now accessible online at www. mifc. com. the large gathering of practitioners here for these two days to discuss the wide ranging matters that relate to issuers and investors will contribute to enhancing the collective understanding and expanding the boundaries of our knowledge on the opportunities in the sukuk market and the potential that the malaysian sukuk market provides and its linkages with other international islamic financial systems. this would facilitate greater cross border flows and not only contributing to enhancing greater international economic and financial integration, and thus to the global growth, but also towards financial stability of the international financial system. on this note, i wish you a successful conference. supplementary information : the mifc secretariat is pleased to announce that the mifc portal has been launched as a key communication platform to strengthen the global identity and branding of malaysia as an international islamic financial centre, or mifc. the development of the mifc portal is an important initiative to promote awareness and global outreach of the mifc. the mifc portal provides comprehensive information on the latest initiatives, incentives and developments in the mifc. in addition, the mifc portal enables convenient

zeti akhtar aziz : current issues and developments in islamic banking and finance keynote address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the asli ’ s conference on developing islamic banking and capital market : “ new opportunities, new market and new frontier in islamic banking and finance ”, kuala lumpur, 25 august 2004. * * * islamic banking and finance has emerged as a financial intermediation process that is competitive and resilient and that contributes to the overall wealth creation, growth and development of our nation. amidst an increasingly challenging and competitive financial environment, the evolution of a comprehensive islamic financial system seeks to meet the range of requirements of a rapidly changing economic environment, with its soundness and stability secured through the robustness of its regulatory framework supported by the strength of its financial infrastructure and the sophistication of its products and services. indeed, the strength of the respective components of the system and the interconnections of its markets will open new frontiers in islamic banking and finance and will maximize the potential and opportunities that it accords. distinguished guests, it is my pleasure to be here today at this conference organised by asli to speak on the current issues and developments in islamic banking and finance. the islamic financial system in malaysia has evolved as a viable and competitive component of the overall financial system, complementing the conventional financial system as a driver of economic growth and development. the rapid progress of the domestic islamic financial system, reinforced by significant developments in the islamic financial infrastructure, including the legal and shariah infrastructure and the regulatory and supervisory framework, has strengthened the position of the islamic financial system as an increasingly important component in meeting the changing requirements of the new economy. the financial sector masterplan launched three years ago provides the strategic direction envisioned for the development of the islamic financial sector looking beyond the near term and taking a longer - term perspective into the needs and requirements of the future. the strategies outlined in the plan have emphasized the development of the respective building blocks of the various parts of the financial sector that need to be put in place to form the solid foundation on which sustainable future progress can be achieved. the expansion of the islamic financial system in malaysia has therefore taken place with attention given for the development of a comprehensive system. towards a more diversified islamic financial system at the onset of our journey in the development of a comprehensive islamic financial system that is progressive, efficient, dynamic and sustainable, due attention was thus given to the development of the key