significant progress through the issuance of an issue paper on issues in regulation and supervision of takaful. the issue paper has identified four major areas that require immediate attention. these are the corporate governance, financial and prudential regulation, transparency, reporting and market conduct as well as supervisory process, which may lead to the issuance of a specific guidance paper or standard that corresponds with the iais insurance core principles. 24. another major area requiring international collaborative efforts is the harmonization of shariah interpretations. it is imperative for shariah scholars globally to undertake in - depth studies and research to accelerate innovation and enhance the global integration of the islamic financial system. harmonisation of the differing views among the scholars from different schools of thought is necessary to enhance the global development of islamic finance. although variations in the shariah principles and interpretation for takaful contract and practices are currently not a major concern, efforts should be undertaken to further minimize these variations in interpretation that may hinder the smooth progress and innovation in the development of takaful. in this regard, malaysia has taken the initiative in promoting greater cooperation among shariah scholars. in 2005, bank negara malaysia organized an annual shariah scholars dialogue that brings together renowned scholars from many parts of the world to discuss as well share and learn from each other's experience. in addition, bank negara malaysia has established an endowment fund amounting to rm200 million to facilitate the activities of shariah scholars. other than financing the periodic dialogues among the shariah scholars, the fund would also promote research, provide scholarships and establish better interaction among these shariah scholars and industry practitioners. it is hoped that this effort would contribute effectively to further enhance interaction and understanding in the area of shariah and islamic finance. the final area of focus in creating a progressive takaful industry is the need to build greater international linkages and strategic alliance among the islamic financial institutions. 25. fostering strategic alliances with the right entities will not only accelerate innovation and development but will also bring about considerable values in the formulation and implementation of new approaches, new technologies and specialisation in new product. these in turn, will pave the way for takaful operator to be competitive and in a position to be industry leaders at the national and global front. let me share with you malaysia's recent initiatives on this front. in january this year, bank negara malaysia has agreed to award four new licences for takaful operators

commendable. but, we must not forget the long road ahead and work still to be done to achieve 2050 in an orderly and just manner. the bank's experience in engaging with multiple stakeholders offers some insights as to the additional elements needed to further propel our transition. allow me to share these insights to cap off our discourse today – that is c for communication, a for alignment, and p for proactivity. 1 / 2 bis - central bankers'speeches communication. the economy's transition doesn't just happen in high powered boardrooms and government offices. it happens in the everyday decisions made by households and small business owners. 97. 4 % of all businesses in malaysia are smes, contributing 37. 4 % of gdp. our engagements reveal that these significant contributors often have low levels of knowledge on sustainability. communication is thus key. banks and industry leaders, those seated in this room, have the responsibility to communicate and create the awareness and acceptance of your clients on the importance, risks and opportunities related to the impacts of climate change. alignment. 2050 is the goal for malaysia. but, it is not one that can be achieved if we each march to the beat of our own drums. our collective effort is key if we are to achieve a just and orderly transition. aside from alignment between institutions, even more critical is the need for alignment within institutions. climate objectives decided at the board and management level must be cascaded to the frontlines and across branches to ensure that clients have the support needed regardless of where they are situated. in combination, this alignment will ensure that efforts by each institution are complementary and achieve the maximum impact. proactiveness. the sixth assessment report by the intergovernmental panel on climate change states irrevocably that the window of opportunity to reach the paris agreement goal of limiting global warming to 1. 5 degrees celsius above pre - industrial levels is rapidly closing. decisions of today already have a profound impact on tomorrow's future. financial institutions must be proactive in ensuring that your own institutions and your clients are prepared in the face of a changing climate and economy. financial institutions must both be innovative in developing relevant and effective financing solutions, and facilitate innovation by supporting green technologies or nature - based solutions that may be the key to unlocking a green future for malaysia. adequately addressing the needs of your clients requires addressing the needs of the future industries that your clients will be operating in. the bank is working actively to enhance