financial institutions would strengthen the ability to leverage on the industry's expertise. the introduction of innovative islamic financial products in a specific jurisdictions can be expanded to other jurisdictions, which in turn, will contribute to broaden and deepen islamic financial markets and thus strengthen the overall development of the islamic financial industry. in addition, collaboration between academic researchers and the practitioners will enable the practical application of such research findings. in the area of education and training in islamic finance, there is now a critical shortage of talent in the islamic financial industry. collaboration between training institutions is vital to developing the pool of expertise in islamic finance that subscribes to common standards. establishing a network of mutual co - operation and collaboration would strengthen the efforts among the institutions of higher learning across regions in the areas of curriculum development, research, training, exchange of ideas and information, and resources in islamic finance. such partnerships in connecting the knowledge communities between regions would facilitate this process. in the area of shariah, the progressive convergence of shariah views and rulings, the mutual recognition of financial standards and products across jurisdictions would be major driver towards greater international financial integration. such a convergence and harmonisation can only happen with greater engagement among the regulators, practitioners and scholars in islamic finance in the international community. finally this integration process also requires greater cooperation among the regulators to ensure that the islamic financial system is not subject to vulnerabilities and abuses and thus ensuring its soundness and stability. in this respect, the sharing of information among the regulators including across borders is important especially in a more globalised and liberalised environment where financial transactions and activities have become more complex and globalised. in this regard, there is a greater need for regulators to be continuously connected to share information on key issues and developments faced in their own financial jurisdictions. in this respect, the islamic financial services board has an important role to facilitate this process. closer financial linkages among islamic financial institutions from different jurisdictions is essential to contribute towards accelerating the process and towards serving as a bridge to strengthen the relationship of the international islamic financial markets as well as the investment and trade ties between regions. such linkages within the industry could also lead to new product offerings and to co - arranging financing. there could also be mutual development of it systems and other technologies including other research and development endeavours. finally, let me touch on the development of the socio - economic aspects of islamic finance. while " profit motivated " islamic financial institutions will continue to evolve and gain greater significance, this

develop further on its own paths and merits so as to maximize the potential benefits of islamic financial system. key to this is having an appropriate pricing benchmark to be an indicator for islamic securities to be efficiently priced and credible. in addition, the role of shariah scholars who have the full understanding of the mechanics of islamic financial products and services, are key to ensuring its continued development. at the same time, shariah decisions, when made, needs to be disclosed. this will allow others to appreciate the juristic reasoning, which in turn would lead to a wider acceptance of shariah decisions, particularly if they have implications on cross - border transactions. as the islamic financial system becomes increasingly more internationally - integrated, it is important to recognize the different regional and institutional strengths and complementarities and the need to maximize synergies. collaboration among regional centres and key players in islamic finance will be an important part of the process that will contribute towards greater international financial integration. constructive engagement in the form of strategic partnerships and collaboration, as well as in market access needs to be enhanced. allowing greater market access among players in islamic financial centres can be a catalyst for enhanced integration and innovative elements in the islamic financial industry. malaysia's experience in strengthening the international dimension of the islamic financial system has shown positive results. this has commenced in 2002 with the inaugural issuance of a global sukuk to the liberalizing to allow for greater market access in islamic banking and takaful initiatives by permitting entry of foreign players. the third area of international integration is the liberalization of our financial markets to allow for greater foreign participation. in particular, in the sukuk market, foreign corporations, multinationals and multilateral agencies may raise ringgit and foreign currency denominated instruments in our market. our private debt securities market is the largest in south east asia. malaysia also has highly liberalized exchange administration system that allows for the free inflow and outflow of funds. there is also no restriction on the utilization of the funds raised in our market. the funds may be utilized for investments outside the country. finally, our own financial institutions have ventured beyond our domestic borders. these cumulative developments have strengthened our linkages with other islamic financial centres. another area important for islamic finance is the investment in research and development ( r & d ). the promotion of international strategic alliances through smart partnerships can create greater synergy that will bring about new approaches, new technologies and new areas of specialization. such collaborative efforts amongst islamic