are intensified in strengthening the vibrancy of the islamic financial markets via instrument diversification and providing regulatory clarity. these aim to widen the range and volume of shariah - compliant investable assets including to international investors. over the past half - decade, malaysia's sukuk market has grown about usd70 billion ( rm332. 3 billion ) or 35 % to an outstanding amount of usd267. 5 billion ( rm1. 27 trillion ). foreign participation in malaysia's sukuk market now stands at total investments of usd12. 6 billion ( rm59. 6 billion ). 3 building from this progress, the islamic financial market subcommittee ( ifmc ) set - up by the central bank has also been tasked to explore strategies to enhance foreign investors participation in domestic sukuk issuances. we look forward to welcoming increasing participation from around the globe in the times ahead. one key progress of the ifmc is in the area of hedging. this has led to a shariah advisory council ruling on the permissibility of anticipatory hedging, subject to specified conditions. this is aimed at further developing the islamic derivatives market, ensuring that it aligns with both shariah principles and prudent risk management practices. we are also establishing a stronger collaboration with the gcc and asian countries to advance mutual development in islamic finance. these efforts will strengthen malaysia's position to be the islamic finance gateway to the gcc and oic markets. global investors stand to benefit from investing in malaysia and participating in sustainable economic prospects this brings me to malaysia's broader growth prospects, and the investment opportunities it presents in the area of sustainability. the malaysian economy is projected to grow at 4 - 5 % in 2024, supported by robust domestic demand and an improvement in the external sector. the improving global economy together with the tech upcycle are benefitting our exports, especially since malaysia is a dominant player in the global semiconductor industry. in 2023 alone, a total of about usd70 billion ( rm329 billion ) investment was approved with foreign direct investment accounting for 57 %. almost 74 % of the projects approved between 2021 - 2023 have also been realised. 4 last year, malaysia's national energy transition roadmap ( netr ) and the new industrial masterplan ( nimp ) were introduced, solidifying further our focus on the sustainability agenda and our commitment to bolster the nation's manufacturing sector. these

##cy and risk management. the ifsb has also commenced work on standards for corporate governance. whilst appropriate regulations and standards are vital to mitigate the risks involved, of equal importance is the oversight and monitoring of the islamic financial institutions through effective supervision by the regulatory authority to ensure that the prudential requirements are observed. lack of oversight, inadequate check and balances, and over exposure to risks are amongst the factors that may result in vulnerabilities to the system. the best of regulations and financial safety nets would not be able to avoid vulnerabilities if early warning systems are not in place. to effectively perform the supervisory function it is important to not only identify the risks involved in the various islamic financial transactions but also to be able to detect any contravention of shariah principles in financial transactions and operations. a central feature of the regulatory framework for islamic financial institutions is financial transparency and disclosure. this is particularly pertinent for islamic financial transactions. for example, investment depositors in the islamic banking institutions have the role of quasi shareholders that are not only entitled to share the profits of the islamic banking business but are also exposed to the risks of losing their capital in the event of losses. in this connection, the issuance of a standard framework for the derivation of the rate of return in islamic banking business has an important role in addressing the information asymmetry between the islamic banking institutions and the depositors so as to ensure depositors receive their appropriate share of returns on the investment. in addition, the issuance of the guidelines on the model financial statement for islamic banks will provide for greater disclosure on the risk and return profiles of the different categories of deposits. this will enable depositors to obtain the true and fair assessment of the islamic banks ’ financial performance and hence, promote confidence and strengthen the competitiveness of the islamic financial industry. enhanced financial disclosure needs to be complemented by customer education and awareness programmes to elevate the level of financial literacy of consumers and businesses to be able to make informed financial decisions and instill market discipline amongst financial players. the launching of the consumer education programme and the organization of the islamic banking and takaful week are aimed at achieving these objectives. these programmes have contributed to enhance the understanding and appreciation of the unique characteristics of islamic banking and finance, islamic financial products and services and their underlying shariah principles and concepts. enhanced awareness on the manner in which islamic financial transactions are being conducted and islamic financial contracts are being executed will not only strengthen the