let me conclude my remarks ; the new global policy frontiers are now addressing the challenges of the new global economic and financial landscape. given the more connected and inter - dependent world, the call is for strengthening the cross - border dimension of policymaking. asia has taken advantage of this period of relative stability to advance economic and financial integration, and to strengthen our economic potential. asia will, however, continue to be vulnerable to external developments and future shocks. to be in a better state of readiness to withstand these eventualities, the policy priority is to build resilience. not only having the buffers and institutional capacity, but also to come together collectively to manage the new challenges, and thus be positioned to contribute constructively to global stability and growth. bis central bankers ’ speeches

their investment activities to this region. even central banks, as traditionally conservative investors, are also venturing into investing part of their reserves, in each other ’ s markets. bank negara malaysia, has since 2003, gradually embarked on investments in regional markets. this includes investments in the indian rupee market. as an approved foreign institutional investor, we have also been able to actively participate in the indian rupee market. progression in the malaysian financial markets progressive efforts have been made to transform malaysia ’ s financial sector with a major dimension of the transformation involving achieving greater regional integration. following a decade, institutional and financial infrastructure development that focused on enhancing domestic capacity of the financial sector while evolving a more competitive environment. we have the foundations to take our financial sector to a new level of development that will focus on new areas that will further strengthen the competitiveness and efficiency of the financial sector and its potential role in facilitating malaysia ’ s ongoing economic transformation and in strengthening our linkages in the region. as malaysia evolves and the new financial landscape emerges, one prominent area of focus is the development of deep, liquid and efficient financial markets in particular, the development of our domestic bond market. malaysia ’ s bond market has already grown to myr867 billion or 105 percent of gdp in 2011, and has become one of the largest debt securities market in south east asia which has now been liberalized to allow issuance by foreign corporation and in multiple currency. our islamic capital markets have also thrived, with a growing presence of international issuers and investors operating in both the ringgit and foreign currency sukuk markets in malaysia. we have seen new innovative structures for sukuk issuances including a world ’ s first issuance in renminbi from malaysia ’ s own sovereign wealth fund, khazanah holdings. the money and foreign exchange markets also continue to grow in depth and liquidity. the volumes transacted in the domestic money market and the foreign exchange market have now reached rm23. 5 trillion and rm9. 21 trillion trades respectively. participation in these markets have also broadened significantly with the growing presence of new issuers, banks, institutions and investors in general, including a growing presence of regional players. in moving forward, measures will continue to be introduced to broaden further the participation of regional players in the domestic market through progressive liberalization of the foreign exchange administration rules and also the development of cross - border bis central bankers ’ speeches settlement infrastructures to enable more efficient and cost