from changes in the financial environment, the technological advancements and financial reforms but also the entry of new players, including the non - traditional competitors such as non - financial services. iii. consumers are increasingly confronted with a wide range of new and innovative products and services that are delivered via new and more efficient delivery channels. as consumers are becoming increasingly demanding and financially sophisticated, greater emphasis needs to be given to the provision of the variety and quality products and services at competitive prices through the most effective channels. banking institutions need to anticipate and rapidly respond to these new demands and expectations. iv. policymakers are also confronted by the challenge of maintaining overall financial stability whilst at the same time, promoting efficiency in the financial system. balancing the trade - offs arising from meeting these objectives will be necessary to determine the best course of action. this needs to be achieved while developing the financial infrastructure, in addition, to allowing for the entry of new players into the system. v. the emergence of international players that possess the competitive advantage of being more technologically advanced with greater capability and capacity to offer more innovative products and services through new delivery channels will further intensify the competitive environment. despite its challenges, the changing economic and financial landscape also offers many opportunities ; i. new growth areas present new opportunities and financial institutions need to take advantage not only of the potential return but also the options for further diversifying the sources of income. ii. alternative sources of financing from the capital market, development financial institutions, as well as from non - bank sources such as venture capital funds, have increased significantly in recent years. financial institutions need to develop new products and services that reinforce these developments and meet the new requirements of corporate consumers. this includes providing world - class financial advisory services and wealth management services. iii. the emergence of new delivery channels such as the internet and mobile phones have significantly altered the traditional banking - customer relationship. business can be conducted seamlessly across borders. technological developments have also transformed the payment systems industry, with the introduction of new payment instruments and entry of non - banks into payment services, facilitating the migration to e - payments. market leaders can capitalise on these developments in providing products and services to customers and businesses. the changing economic and financial landscape also brings about many opportunities for trade and investment. with the accelerating pace of regional integration, financial institutions are presented the opportunities to broaden beyond domestic borders to capture opportunities for the regional markets. it has been more than 5 years since the financial sector master pan was

three challenges here. 1. one, it appears as if we are still in the early days of value - based finance. many financial institutions – conventional and islamic alike – have yet to make important changes to how they operate and do business to fully deliver on value - based finance. five years since the launch of the vbi initiative in 2017, the majority of community of practitioners members are only at the " emerging " phase of implementation. 1 / 4 bis - central bankers'speeches 2. meanwhile, the efforts to diversify value - based capital – such as to fund new ventures and other vbi - aligned outcomes – is far from full realisation. only 4. 2 % of investment accounts intermediated by islamic banks are suitable to finance transformation, such as in supplying growth capital to industries of the future or new business models. 3. we have also yet to make the most out of the full range of shariah contracts in finance application today. benevolent contracts, risk sharing contracts and other asset - based contracts have yet to be fully utilised to offer a broader spectrum of funding, investment and protection solutions. this means that we are not realising the full potential of value - based finance to address contemporary economic and social needs. this also points to a continued need to foster appreciation of the fundamental values of shariah among market participants and its embodiment in financial solutions, services and conduct. changes to the way islamic finance operates cannot happen overnight. but what the industry does today will be crucial in bringing to life the fundamental values of islamic finance, and showing how it is relevant to address contemporary challenges. in my view, to elevate the values of islamic finance to the next level, the industry must seek to embody and exemplify the value of ihsan, continuously striving for attainment of excellence. a hadith narrated in sahih muslim reported that prophet muhammad ( peace be upon him ) said, " verily, god has enjoined excellence ( ihsan ) with regard to everything. " manifesting ihsan in islamic finance, thus, calls upon all stakeholders to steadfastly find ways to transform and deliver the highest standards in all aspects of its business. in my mind, there are three key imperatives that can facilitate ihsan in islamic finance to ensure that it continues to provide strong support for " value - based growth " – one that is balanced, progressive, sustainable and inclusive. the first is the need for a