foreign investors who are considering to do business in this region. in line with the objective of supporting regional integration, bank negara malaysia has recently signed a memorandum of understanding ( mou ) with the bank of thailand to promote the use of malaysian ringgit and thai baht by the private sector to settle crossborder trades and direct investment. the cooperation is motivated by the strong trade relationship between the two countries. we expect malaysia - thailand trade links to reach rm100 billion in 2015. while the us dollar is still the dominant trade settlement currency, the thb and myr are second and third most used currency by malaysians and thais – indicating potential for greater acceptance to settle trade in domestic currencies. the framework we are developing with the bank of thailand contains key features which include the appointment of selected financial institutions in malaysia and thailand to facilitate local currency settlement. these financial institutions will be accorded certain foreign exchange administration flexibilities. if the initiative proves successful, we plan to expand the framework to other asean trade partners as well. conclusion as we keep our eyes firmly on the future, a humble reflection on the past and honestly looking at our short comings would certainly lead us to a brighter future. financial markets should continue to play its intermediary role for the purpose of funding to the real economy, efficiently allocate capital where it is needed and assist economic agents to manage financial risks associated with investments, production and trade. these should always remain our core objectives. i also wish to congratulate ppkm on your achievements this year and the successful organisation of this event. may tonight ’ s dinner, themed “ friday night fever ”, be a night of joy for all of us today. thank you. bis central bankers ’ speeches

take place in 2004. the issuance of new islamic banking licences to qualified foreign financial institutions will allow for the presence of foreign islamic banking players to act as a bridge between malaysia and other global islamic financial markets and increase the potential to tap new markets and growth opportunities. it will also contribute to spur financial innovation as well as facilitate international trade and investment flows between malaysia and the rest of the world. an important dimension of the financial infrastructure is a comprehensive and effective legal infrastructure for legal redress arising from islamic financial transactions. the legal infrastructure needs to comprise both effective regulatory and substantive laws as well as appropriate adjudicative fora for parties to resolve disputes relating to islamic financial transactions. this will instill confidence and promote the sound expansion of the islamic financial industry. towards meeting this objective, the high court of malaysia has assigned a dedicated high court to preside over litigated cases on matters relating to islamic banking and finance. to complement the court system, disputes may also be referred to the arbitration centre for resolution. in this regard, the kuala lumpur regional centre for arbitration will be enhanced to serve as a platform to deal with dispute cases on islamic banking and finance, and to extend these services beyond our borders. in addition to the dispute resolution mechanisms, the central bank has formed the law review committee to review the common law - based domestic legislations to assimilate shariah principles with the aim of removing any impediments to ensure the unhindered and efficient functioning of the islamic banking and financial system. this review covers tax and stamp duty laws, company laws, land laws and procedural laws. an important consideration in the development of an effective legal framework for islamic banking and finance is the need to ensure enforceability of islamic financial contracts in accordance with shariah principles. in this regard, the central bank of malaysia act 1958 was amended to position the shariah advisory council of bank negara malaysia as the sole authority on shariah matters pertaining to islamic banking and finance that fall under the purview of the central bank. with this stature, the shariah advisory council will therefore serve as the reference point for the court or arbitrator in dispute resolution that involves shariah issues in islamic banking and finance cases. to further strengthen the shariah infrastructure, guidelines will be issued to define the new structure, roles and functions of the shariah committees of the islamic banks, the islamic banking scheme banks and the takaful operators. the guidelines would