bloomberg global aggregate and jpmorgan gbi - em have already led to improved visibility of islamic instruments and increased foreign participation. increased foreign participation in the local market via government issuances and multinational corporations'( mncs ) investment in the halal industry is also envisaged to increase ringgit market appeal among the investors. growth of takaful and re - takaful also continues to be a development focus. in the financial sector, malaysia's takaful industry has continued to grow at a faster rate than conventional insurance. it recorded a compound annual growth rate ( cagr ) of 20. 6 % in the first nine months of 2022 and outperformed conventional insurance's cagr of 10. 8 % 2. not least, islamic banking continues to grow 1 / 4 bis - central bankers'speeches further with more institutions adopting an islamic - first strategy. with the growth of the assets comes the demand for corresponding shariah - compliant investing and treasury services. these factors point to another area where we believe to be important in further advancing malaysia as an international islamic financial centre. the development of a vibrant islamic financial market, in particular the ringgit islamic financial market. currently, islamic money market volume already accounts for 38 % of the total turnover in the money market while total trading volume has increased steadily over the years to rm5. 9 trillion in islamic money market as at end of 2021 ( 2020 : rm4. 91 trillion ). commodity murabahah has been the predominant instrument in the islamic money market with a 92. 7 % composition, followed by qard acceptance ( 5. 6 % ), negotiable instrument of deposits ( 1. 2 % ) and others3. the overall bond market ( including sukuk market ) continued to grow with outstanding bond and sukuk growing at 8 % in 2021 to rm1. 7 trillion4. turnover of debt securities and sukuk remained robust at rm1. 87 trillion as of end - 2021, with average daily secondary bond trading volume of rm3. 8 billion. to date, malaysia remains the biggest global sukuk market with a share of 52 % of total outstanding sukuk and 42 % share of global sukuk issuances as of end - 20215. these are very good achievements - a strength that we can further build upon. as part of the financial market committee's ( fmc ) effort to further develop the onshore financial markets, the islamic

financial market subcommittee has been tasked to formulate specific market development initiatives to take us forward. the committee has already started work in 2022 with an assessment on the current state of the islamic financial market in malaysia and identifying gaps on potential growth areas. key areas with gaps that need to be addressed are the general market liquidity, the extent of foreign participation in the domestic market and the vibrancy of the interbank market for derivatives. the islamic repurchase market registered rm39. 4 billion in volume in 2021 or around 1 % of the total islamic money market volume for the year while the derivatives market witnessed a mere fraction of 0. 1 % of islamic instruments with the rest being conventional instruments. if we consider that islamic financing comprises more than 40 % of the total, we have a lot of opportunity here. meanwhile, foreign participation in the sukuk market was less than a third of the conventional bond market and hence, further efforts can be undertaken to boost this. the assessment also observed that the outlook for the malaysian islamic financial market in the next 5 - 10 years is generally positive, pointing towards continued growth and development as well as malaysia remaining as a major global islamic financial centre6. the committee identified the following immediate development areas : the need for continued collaboration between regulators and the financial market community in promoting and improving the transparency to broaden the investor base of the malaysian sukuk market ; the concept of " anticipatory hedging " was identified to be vital in advancing the islamic derivatives market in malaysia and in creating a healthy, liquid market for practitioners'hedging activities ; enhancement of esg data so that capital and funding can be directed towards more sustainable and higher - impact assets ; and 2 / 4 bis - central bankers'speeches islamic social finance ( isf ) has a role to play in the malaysian retail market, potentially through a cash waqf linked sukuk model. this model can serve as a guide for similar social financing models for ifis to emulate in the malaysian market. looking beyond the financial market, there will be a higher platform that will steer the mifc agenda. with the growing maturity of the islamic financial sector in malaysia, bank negara malaysia also believes that the industry is now well positioned to drive the broader mifc agenda. the mifc leadership council, a joint initiative of bank negara malaysia and the securities commission malaysia will provide thought leadership, and drive strategy formulation and implementation to enhance malaysia's position as an international gateway