increases the risk profile of msb companies which companies must carefully consider. it can lead to a loss of focus on longer term competitive positioning which remains key to any successful business, compromise service quality standards and heighten compliance risks. the insights gained from a deeper understanding of customer needs and priorities should serve to focus competitive strategies on how to improve the customer experience. we firmly believe this needs to be an important part of the conversation in pursuing the goals of more inclusive and efficient remittance solutions. we are encouraged by the efforts of some msb companies that have responded to greater competition through a focus on innovation and investing in building a trusted company brand that consumers can be confident in. as an example, today, there are 17 remittance service providers that have introduced digital remittance services, almost double the number only 2 years ago. the requirement for employers to pay foreign workers ’ salaries through their local bank accounts starting next year will provide further impetus for the digitalisation of remittance services. with a high level of smartphone penetration among migrants in johor bahru at 74 % and internet access at 90 %, significant opportunities exist to promote e - remittances. currently, outward remittances conducted through mobile phones or the internet represents less than 10 % of total outward remittances recorded by msb companies. increasing this share can lower costs associated with cash handling for both businesses and the economy, creating a virtuous cycle for affordable remittance services. project greenback kota kinabalu as one chapter comes to an end, another begins. in continuation of our efforts to encourage ongoing positive developments in the remittance market, bank negara malaysia and the world bank are pleased to take the project greenback partnership to malaysia ’ s second remittance champion city – the city of kota kinabalu. on behalf of bank negara malaysia let me thank y bhg. datuk juanis solidau for his presence here today to mark the handover, and to dewan bandaraya kota kinabalu for agreeing to host the project. we are very excited about the prospect of bringing the project to kota kinabalu, which will offer the opportunity to apply successful lessons from johor bahru, and also new and different experiences to build on. this will include a focus on supporting e - remittances given the large number of migrant workers staying in remote areas. conclusion as the chinese philosopher lao tzu famously said “ a journey of a thousand miles

these include preferential financing rates for hybrid vehicles and green buildings, specialised financing scheme for women entrepreneurs and issuance of the world ’ s first sustainable development goals ( sdg ) sukuk. where vbi goes beyond are in provision of non - financial services bundled in financial solutions such as advisory, business network and relevant infrastructures to groom small clients with business potentials such as smes and micro finance. alongside this move towards responsible financing, the cop members are actively reviewing their business portfolios, identifying and prioritising vbi issues within their institutions and building the required capacity. the banks ’ progress and effectiveness of vbi - related initiatives would be captured through the vbi scorecard. the underpinning thrusts of vbi are also gaining relevance in the takaful industry as takaful operators are taking initial steps in exploring value - based protection for their customers. given the universal nature of vbi, i believe that its adoption by financial groups which comprise the conventional financial institutions, as well as issuers and investors would be a natural evolution in the financial ecosystem. expectations on the next generation of islamic financial institutions the next generation of islamic financial institutions would thus be driven by values and not just profit. with a moral outlook for the ultimate good, strengthened by self - discipline, greater accountability and integrity, islamic financial institutions will have stronger consideration of the impact of decisions made. there should be greater drive to continuously improve their offerings and treatments towards customers and employees, which include fair and transparent disclosure in order to increase the positive impact of their activities. development of banking practices based on vbi concepts are also anticipated to encourage the creation of new business opportunities and provide the foundation for better returns for islamic banks over the long term. an example is assessment of financing application by islamic banks based on value - creation instead of mere credit scoring which would benefit business propositions from new sectors such as smes. another example is refocusing, strengthening and repositioning of personal financing 3 / 4 bis central bankers'speeches by islamic banks to best meet the needs and circumstances of customers. in time, there may emerge greater differentiation between vbi and non - vbi institutions which will be better understood by shareholders, fund providers and financial markets more generally. furthermore, the more comprehensive and holistic approach of vbi in advancing the good for society could prove to be a key competitive advantage that will influence and shape the future of the financial industry. the drive for positive changes in the islamic financial services industry however requires