. as part of this process is the support provided by an enhanced surveillance mechanism. a further implication of a more networked economy is i n the area of payments, clearing and settlement systems, in which the benefits are derived from the economies of scale and the positive network externalities of increased participation. inevitably, payment networks could become more interconnected and a single and large payment network could emerge. it then becomes essential to be in a position to manage the risks that may emanate from places beyond national boundaries. there has to be then a high level of preparedness against any disruption in the flow of information, funds and securities becomes vital. ladies and gentlemen, the policy response how have these developments changed the way bank negara malaysia operates? in malaysia, efforts are currently being taken on several fronts to meet the challenges arising from these trends. these range from structural enhancements to the macro surveillance systems, to strengthening of the robustness and capacity of financial players, in addition to promoting greater understanding of the intricacies of the interconnectivity, and the nature and speed of contagion risks within the overall system. on the regulatory front, closer regulatory oversight is particularly important in ensuring the strength of the risk management framework of large and complex financial institutions that are active in crossborder transactions. towards this end, bank negara malaysia is enhancing its prudential framework for the management of operational risks among such financial institutions, with the introduction of sound practices. the bank's prudential framework has also been refined and enhanced to ensure that financial institutions address the risk management implications of new financial products, including credit derivatives, credit default swaps, credit linked notes and collateralised debt obligations. in addition, the introduction of the payment system act in 2003 provided bank negara malaysia with a broader scope on the oversight function over payment systems and instruments that are operated or issued by banks or non - banks, given that advances in ict have increased the participation of nonbanking institutions in the payments system. the bank has therefore put in place a specific legislative authority to institute more comprehensive and effective mechanisms for achieving effective oversight of the payments system in a networked environment. bank negara malaysia also maintains very close contacts with its counterparts in other jurisdictions to keep abreast of developments in the financial markets. strengthened surveillance and information sharing on a real - time basis has become key. cooperation among the asian central banks is very strong, and there are various avenues for increased interface for collaboration at all levels in

' s broader objective of advancing sustainability. in context for this roundtable, green sukuk can further catalyse the development of the sustainable economy moving forward through various government initiatives mainly through national energy transition roadmap ( netr ) which is estimated to require up to rm1. 85 trillion in financing by 2050. 1 / 4 bis - central bankers'speeches malaysia's pioneering role in islamic finance has not only fostered the growth of domestic islamic finance but also established malaysia as a global hub for shariahcompliant finance, attracting investors from around the world. the expansion from traditional islamic finance to the issuance of green sukuk is a natural evolution of malaysia's leadership in this field. leveraging its extensive experience and wellestablished infrastructure, malaysia is well - positioned to be at the forefront of the global green sukuk market. in this regard, malaysia remains a centre of innovation with numerous groundbreaking initiatives, including the issuance of green sukuk. notably, malaysia pioneered the first green sukuk with tadau energy sdn bhd, issued in july 2017. so far, the majority of green sukuk issuances have originated from malaysia. as of july 2024, out of a total of 291 green sukuk issued globally, 262 were from malaysia. as a result, malaysian investment banks are highly regarded for their advisory roles in green sukuk issuances. further to that, malaysia also continues its regional leadership in sri sukuk, with yearto - date issuance of fourteen sri sukuk totalling rm1. 5 billion while since the launch of the sc's sri sukuk framework1, total outstanding sri issuances have approached rm27. 3 billion2. the country also contributes significantly, accounting for 25 % of the total issuance of asean green, social, and sustainability bonds and sukuk amounting to us $ 49. 1 billion3. this is a strong foundation. the current ecosystem is already well - positioned to further facilitate green sukuk issuances in malaysia. the securities commission ( sc ) has established a robust framework and incentives to support these issuances and their development. additionally, bank negara malaysia ( bnm )'s foreign exchange policy ( fep ) has always been facilitative of sukuk issuances in malaysia by residents. for issuances by non - residents, the bank is exploring initiatives to offer fe