we will be looking at further measures, similar to these. the idea behind these measures is to make our onshore financial market more flexible, facilitative and competitive. in other words, we are deepening the onshore markets towards becoming the main actor to conduct the foreign exchange needs of our economy. this journey will be exciting and require some behavioural changes. but we have no doubt that with the full support of the industry, we can achieve these outcomes. i envisage the fmc and the industry to further collaborate and come up with the new strategies and ideas to deepen and support the development of our onshore market. beyond trade or real sector activities, we should look at financial investments, in particular the non - resident investors in our bond market. we have 33. 7 % of our government bond market held by such investors. there are opportunities in this domain. 4 / 5 bis central bankers'speeches where are they hedging their foreign exchange exposures? what product can the industry offer for them to hedge onshore? given these obvious opportunities, we need to develop solutions that will benefit the industry as a whole. the significant overseas investments by residents and foreign currency exposures arising from trade activities create a need for the domestic hedging market to be further deepened. in 2015, fx market transactions volume reached a staggering usd2. 52 trillion, yet currency derivatives such as fx forwards and options only made up 5 and 1 percent of the total volume, respectively. similar concerns also exist for the bond market. both government and corporate bonds are still primarily held by residents, and we have one of the largest corporate bond markets in the region. yet, this does not translate into the development of active hedging market activities. credit derivatives made up less than 1 percent of ringgit derivatives volume in 2015. this prompts several questions. are our investors able to hedge effectively or efficiently manage the exposures of their portfolios? what instruments are on offer or traded in our markets that can serve as such tools? what are the policy changes that require rethinking to enable us to develop a deep and liquid hedging market? these are all issues that the fmc will deliberate and offer solutions. we all share the aspiration for our onshore financial market to become a highly competitive market. not just the foreign exchange market but across all its market segments ; money, interbank, bond and the derivatives markets. a market where pricing of ringgit assets are fully

. the intrinsic principle of profit and risk sharing thus provides an in - built check and balance to the islamic financial transactions. a combination of these distinct features together with the implementation of prudential risk management standards and practices would contribute to the robustness and resilience of islamic financial system. mutual respect on shariah matters this decade has thus been a phase of innovation in the global islamic financial system with a number of breakthroughs and major milestones in innovative deals and structures. the advancement of sukuk, islamic securitization, islamic private equity, islamic real estate investment fund and other financial instruments in terms of sophistication and product range has widened the international market reach of islamic finance, particularly in the cross border transactions. at the same time, this phase is also seeing a number of key issues being raised, particularly in respect of divergence of shariah views underlying a number of the islamic financial transactions. while such a divergence of opinions in islamic financial transactions is not a new phenomenon, it has presented a new set of challenges in today's increasingly more globalized market. to forge closer linkages between the global islamic financial markets would require a common understanding and acceptance on the applicable rules and standards. indeed, cross border transactions would require the jurisdictions involved to mutually recognise the validity of respective rules, practices and underlying shariah interpretations. this is key for the orderly development and for advancing the pace of progress of the international islamic financial industry. for this, it is important to have a concerted effort in providing greater clarity on the mutually acceptable strategy for the development of global islamic finance. in the current globalised environment, the role of scholars needs to transcend beyond pure advisory or shariah rulemaking, to a more strategic role in charting industry development. this could be in part be achieved by having global shariah standards for the islamic financial industry. a mutually agreeable position could be achieved with the application of mutually recognized principles and processes to deduce the shariah rulings and views. 1 there are lessons to be drawn from the previous success stories in the history of islamic jurisprudence whereby the strong sense of mutual respect prevailed among muslim jurists with multiplicity of shariah opinions. the jurists from different mazhab had high regard for differing views expressed by other jurists, even in ibadah matters. in relation to this, malaysia has taken a three - prong strategic initiative to promote greater mutual respect of the shariah