ago, the ports of nusantara were destinations for the spice trade to europe via india and the middle east. in this context, islamic finance can serve as a bridge that links the nusantara region to the capital surplus economies. already, our financial institutions are venturing to have a presence in the middle east and we welcome their presence in our financial system. this has now in fact resulted in the cross - pollination of talents and resources, giving rise to innovative products and services, creating depth and breadth to the respective financial markets. just as the straits of malacca served as an important maritime conduit for the nusantara region, malaysia and indonesia has the potential to serve as an important intermediary for mobilising capital to meet the requirements of the nusantara region, and to be a distribution centre for shariah compliant securities and to extend the regional islamic capital markets to other parts of the world. of importance will be our joint efforts to promote the standardisation of the islamic regulatory and compliance matters. in relation to this, malaysia and indonesia is already working jointly to promote research capabilities and the pool of talent and technical expertise in islamic finance. a critical success factor for the cross - border promotion of islamic finance is the harmonisation of the governing shariah frameworks between our jurisdictions. in this regard, indonesia's extensive history of scholarly achievement in the subject matter relevant to the principles of islamic finance can be leveraged upon for the benefit of the region. we are most hopeful for substantive convergence of interpretation and application of the shariah laws and guidelines for the region. the greater collaborative engagement between our respective scholars would indeed facilitate the process. ladies and gentlemen : the large gathering of senior representatives of the public and private sectors here today hints to the significant interest to capitalise on potential of the nusantara economies. the efforts of the private and public sectors in building a collaborative platform as a resilient base for a network of linkages to the wider world, with god's grace, insyallah, will contribute to advancing the nusantara agenda that would unleash the potential of the region for a greater shared prosperity. thank you.

will be increased complexity in identifying the risks which will in turn complicate the process of risk management. the increasingly integrated and liberalised markets will also expose our porous economies to greater external influences and to contagion risks. a higher level of vigilance is thus required to allow for pre - emptive policy measures in a timely manner. this will require adequate levels of cooperation among the regional regulators in addressing potentially contagion systemic risks and ensuring regional financial stability. the deepening of co - operation between the nusantara's monetary and regulatory authorities is thus a key factor in the development of a robust integrated platform. enhanced cooperation will promote greater resilience and reduce regional vulnerability to external developments. there are now various regional mechanisms in place to undertake regional surveillance, to facilitate the exchange of information, to enter into greater engagement on issues affecting the region and in developing regional financial markets. in addition, frameworks for enhanced regional risk management, crisis management and resolution are also being put in place. with greater financial integration, the region will be able to leverage on the advantages of economies of scale, innovation and more importantly place greater reliance on the cumulative strengths that resides within the region including our financial resources, skills and knowledge. it will also better position the region to collectively address emerging issues and challenges faced by the region taking into consideration the region's socio - economic context. ladies and gentlemen : while islamic finance is gaining global interest and acceptance, the world's most populated muslim region in the world, the new nusantara offers opportunities for the accelerated expansion of islamic finance. the intrinsic nature of islamic financial structures encourages stability. islamic principles require that the financial transaction be supported by genuine economic transactions. to further reinforce this, the governing shariah principles also serve as a built - in self - regulatory mechanism that insulate islamic instrument issuers from unproductive, speculative and unethical elements and thereby contributes to the stability of the financial system. historically, capital financing and investment flows into the nusantara region have generally been sourced from the developed financial markets. while we may see continued growth in short term capital inflows from these traditional sources, the more competitive global environment provides no assurance of the sustainability of such longer term investment flows. meanwhile, our own south east asian region and that of north asia and the middle east countries continue to have high surplus savings seeking opportunities for investment and new asset - classes for greater risk diversification and improved returns on their investments. hundreds of years