to a future that is not only environmentally resilient but also to a sustainable economy. let me end with a quote from thanos, the villain from marvel's avengers : infinity war. to a question from gamora, he said, and i quote, " little one, it's a simple calculus. the universe if finite, its resources is finite. if life is left unchecked, life will cease to exist. it needs correcting. " while i don't agree with him on wiping off half of the human population from this beautiful planet, we call earth, to preserve endangered species and our environment, but he certainly has a point. we cannot go on unchecked. our actions need to be calibrated and corrected. such calibration will inevitably be guided by your robust research and valuable findings today. thank you and i wish you a fruitful conference ahead. 1 wef global risks report 2023, world economic forum 5 / 6 bis - central bankers'speeches 2 ipbes - ipcc co - sponsored workshop on biodiversity and climate change, ipbes secretariat 3 new nature economy report, world economic forum 4 implementation of the kunming - montreal global biodiversity framework at the national level by malaysian business and private sector community, bernama 6 / 6 bis - central bankers'speeches

. some of these reform proposals have attracted intense international debate generating divergent views on these issues. a broad consensus however is emerging on the need to raise both the quantity and quality of regulatory capital, strengthen liquidity rules and improve market transparency. there also seems to be agreement for the extension of regulatory tools to address pro - cyclicality in the financial system through the creation of counter - cyclical capital buffers, dynamic loan - loss provisioning and greater alignment of incentives with long - term goals. this consensus reflects the objective of avoiding having incentives that would encourage the material build - up of leverage and the excessive appetite for risk. other measures under consideration include the implementation of non - risk - based leverage limits to contain the build - up of leverage in the banking sector and the strengthening of the supervisory framework and the arrangements for dealing with oversight on crossborder financial groups and for resolution. implications for islamic finance islamic finance does not exist in isolation and as it becomes an increasingly important component of the global financial system, it will inevitably be impacted by the changing global landscape of financial regulation. this is particularly the case as its growth gains momentum both in terms of number of services providers and in terms of business volume and as its internationalisation process continues. the global call for improved regulation and increased oversight will thus intensify the efforts that have already been undertaken to strengthen the financial regulation for islamic finance. let me now focus my remarks on four major implications of the changing global financial regulatory landscape for islamic finance – first, particularly in financial systems in which islamic finance is being developed alongside the conventional financial sector in a dual system environment, ( which is the case for most ifsb member countries ), there will be a need to ensure that the reforms are undertaken in parallel. the concern is that there would be insufficient attention given for islamic finance and consequently, the tendency for broad - brush application of regulatory measures intended for conventional finance on islamic finance. in developing the appropriate regulatory framework for islamic finance, it is not uncommon to leverage on the established wisdoms of prudential regulation for conventional finance to achieve regulatory efficiency particularly in a dual system environment. whilst it may be envisaged that it is not necessary to reinvent the wheel, it should not override the importance of addressing the specificities of islamic finance where necessary. such a prudential regulatory design that takes into account the unique mix of risks associated with shariahcompliant instruments would enhance the effectiveness of the regulatory outcomes intended for islamic finance. although there