for more well designed solutions that extend beyond readily available products. conclusion before i end my remarks, i would like to touch on the importance of calibrating trade finance processes with digitalisation. the world bank ’ s islamic trade finance report recognises this as a priority area and calls for enhancements to online islamic trade finance supply chain financing, and the use of blockchain technology. such technological advancements that leverage distributed ledger technology and api - enabled trade finance platform can address long - standing issues in trade finance operations that mainly arise from the voluminous and manual nature of trade finance processes. this could also potentially reduce the cost of trade finance of which according to w to, has surged by 30 % on average over the past year as well as eliminate fraud and increase transparency. the bank, in recognising the potential of digitalisation in advancing the delivery of meaningful access to consumers, provides an enabling environment for financial institutions to foster innovation through the fintech regulatory sandbox and facilitation of pilot projects. such avenues enable us to identify potential adjustments or responses to the existing regulatory framework, commensurate with the risk and scale of activities. one such initiative is the development of proof - of - concept for double invoicing detection carried out by selected financial institutions, which is now being enhanced by paynet for commercial use. in closing, i would like to share an excerpt from the book of ( musnad ) of ibn hanbal – the prophet ( peace and blessings be upon him ) was once asked about the best kind of earnings, of which he replied, “ that for which a man works with his hand. and honest trading. " 6 trade is held in such high regard in islam, and hence we should always strive towards betterment in its execution. thank you. 1 source : matrade article, 29 july 2021, “ double - digit growth in exports in major markets ” 2 source : world bank islamic trade finance report 2021. 3 / 4 bis central bankers'speeches 3 source : world economic forum article, april 2021, “ economists support ‘ immediate and drastic action ’ against climate change ” source : standard chartered ( june 2021 ). “ carbon dated : multinational companies planning to cut suppliers by 2025 for failing to curb carbon emissions ”. 5 source : miti ( april 2021 ). “ investment policy reforms to be rooted in the national investment aspirations ( nia ) ”, media release and mida ( may, 2021 ). “ malaysia is shifting

##s islamic financial institutions ( ifis ) to take an exploratory approach to new trade - based offerings. this allows for a better understanding of the risks and their dynamics thus enabling ifis to put in place the appropriate framework and policies. as an example, four islamic banks have commenced a pilot programme with four government ministries in march 2021 to provide liquidity facilities for smes via the purchase of outstanding invoices from government vendors. this is an example where non - traditional islamic trade finance solutions can help satisfy the financial needs of businesses. another important thrust is for us and in particular islamic finance to help businesses embrace sustainability and build resilience to climate change. the urgent need for an inclusive and greener recovery is undeniable. this is a point driven home by the recent publication of the intergovernmental panel on climate change report that spelt out code red for humanity. on the current trajectory, climate change is estimated to cost the world usd1. 7 trillion a year by 2050, with potential escalation to approximately usd30 trillion by 20753. globally, efforts towards building climate resilience have intensified, with global supply chains joining the movement. the race towards net zero by 2050 has also seen multi - national corporations ( mncs ) restructure their supply chains to be more sustainable, putting non - compliance suppliers at risk of being sidelined. as a trading nation, malaysia stands to lose usd65. 3 billion4 worth of annual export revenue if we do not embrace the transition towards a low carbon and climate resilient economy by 2025. trade partners have started to impose expectations on sustainability as preconditions to transact. for example, malaysia ’ s major trade partners ( e. g. china, eu, south korea and japan ) commitments to net zero by mid - century and the recently eu ’ s proposed carbon border adjustment mechanism will increase the cost of business to export into these markets. it is clear that sustainability is no longer a nice to have but an imperative business consideration critical for long - term survival. it is encouraging to see that the financial sector is stepping up on this front including via the offering of sustainable finance solutions and assistance to companies in their transition journey. islamic financial institutions have and continue to lead through value - based intermediation ( vbi ) practices. vbi stems from the underpinning values of maqasid shariah that propagates attainment of benefits and prevention of harm that is