adnan zaylani mohamad zahid : sustainability and the challenges ahead speech by mr adnan zaylani mohamad zahid, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the ifn green and sustainable finance forum, kuala lumpur, 3 december 2019. * * * it is a pleasure to be here this afternoon. i would like to thank the organisers for once again inviting me to speak at their conference. i hope that i can further add to the valuable discourse that undoubtedly takes place at such events. we must now acknowledge, that the sustainability agenda has gained increasing importance and a momentum of its own. everywhere, there is a sense of urgency and call for action. consumers are making their purchasing decisions with the environment in mind. investors and shareholders are making demands for their companies and corporations to adopt environmental, social and governance or esg standards. corporate managers, emboldened with such mandates by their shareholders are reshaping their organisations into new corporate citizens, responsible, responsive and socially aware. governments are certainly not left behind. globally, societies are seeking ways to create sustainable solutions for their communities. achieving the sustainability goals will not be an easy journey. the global environment itself is more challenging than before with increasing volatilities and uncertainties arising from the global trade war, geopolitical developments and a multitude of factors. many of these could derail or delay our efforts. how do we then stay on course to keep sustainability and responsible finance a prime focus of business in the financial sector? in my view, islamic finance is primed to advance the sustainability agenda. islamic finance is developed with a higher overarching objective that emphasises maximising positive value creation and prevention of negative impact. the maqasid shariah first articulated by al - ghazali in the 12th century outlines the goals of preservation of religion, life, family, mind and property with the ultimate aim of prevention of harm and attainment of benefits. many scholars have developed this further, describing the maqasid shariah as the attainment of good, welfare, advantage, benefits and warding off evil, injury, loss. modern scholars have also weighed in, touching on nurturing righteousness and establishing justice. contemporary scholarship in islamic law also recognises human development to be a prime expression of maslahah ( public interest ) pertaining to all economic activities. these guiding principles for islamic finance stands in contrast to the secular philosophy of

of infrastructure development is estimated to be usd35 trillion over the next 20 years. for the asian region alone, a study done by the asian development bank ( adb ) reveals that the region needs usd750 billion per year over the year 2010 – 2020 to meet the rising needs of infrastructure development. out of this, the needs for the asean region have been estimated to be over usd60 billion per year. considering the vast opportunities of infrastructure projects regionally and globally, malaysian contractors should seize the opportunity for further expansion of their business. i am pleased to note that many malaysian companies have already established their presence in the global construction industry with commendable achievements. the number of overseas projects awarded to malaysian contractors has increased by 43 % to 40 in 2008 valued at rm8. 5 billion, from just 28 projects valued at rm2. 9 billion in 2004. in 2008, the middle east region being the major end - users of the projects undertaken by malaysian contractors, accounted for nearly rm6 billion or 68 % of the total value of the projects comprising various sectors including energy and transportation. indeed, the achievement signifies that our local contractors do have competitive advantage to reap the vast opportunities in the global market. in complementing the efforts of local contractors to strengthen their international presence, relevant authorities and institutions should be continued to enhance and improve the enabling environment. in this regard, i am pleased to note that the cidb has effectively played a key role in promoting the capabilities and strength of malaysian contractors to the relevant parties in the global market. apart from having well established companies with excellent track record to undertake infrastructure projects, the other critical component in ensuring the success of infrastructure development is the availability and accessibility to financing. bank negara malaysia has always accorded and will continue to accord high priority to ensure that financing continues to be available to support the needs of the economy. i am pleased to note the vital role played by the exim bank in providing the financing facilities for the construction sector to undertake projects abroad. in today ’ s seminar, we have the opportunity to hear from the exim bank on the various available financing facilities to contractors with overseas projects. similarly, we will also be enlightened on the role of the icd in promoting economic development among oic member countries, particularly on private sector project, by providing financial as well as advisory services for a range of client requirements. malaysia ’ s islamic financial industry, as we are all aware, distinguishes itself a proven platform for conducting islamic finance activities.