##aful bhd. should be able to strategise itself by optimising and leveraging on its shareholders ’ wide customer base and network, strength, expertise, experience and infrastructure in offering diversified products of high quality and enhanced customer service. given the strong international network and experience of its foreign insurance partner, aia afg takaful bhd. is also certainly well positioned to establish its global takaful centre of excellence for the region in malaysia, therefore reinforcing malaysia ’ s position as an international islamic financial hub. on this note, i wish aia afg takaful bhd. every success in its endeavours and look forward to its contribution towards further development of the islamic financial services industry in malaysia. dengan lafaz bismillahir rahmanir rahim, saya dengan sukacitanya merasmikan pelancaran aia afg takaful bhd. terima kasih. bis central bankers ’ speeches

, the profit sharing and risk sharing characteristics in islamic finance strengthen the incentives for the financial institutions to ensure the profits are commensurate with the risks being assumed. it is this form of finance that we would want to encourage. with this underlying foundations, efforts are being directed to build the domestic financial infrastructure. a challenge that is being specifically addressed is the development of an active secondary global sukuk market. in this regard, there has been a lack of trading in the secondary market especially in the usd sukuk market as the investors tend to buy - and - hold the instruments until maturity. this is largely due to the scarcity of the instruments in the market. in malaysia, the growing ringgit sukuk market has resulted in an active secondary market. this is largely due to the regular and varied issuances throughout the year. this is supported by the investment in research and development and in talent development to ensure the availability of expertise in the structuring of sukuk instruments and in sukuk documentation. having the potential to innovate new instruments will depend on having the necessary talent. this is an area of focus in malaysia to develop the skills, expertise and capability. the islamic financial system in malaysia now offers a wide range of financial products and services that are competitive and able to meet the changing requirements of the domestic and global economy. way forward for the global islamic financial system as we advance forward, we need to recognise the forces of change and the transformation taking place in the international financial system and global economy. relentless efforts have been initiated to reform the international financial system by the international community to address the weaknesses that have contributed to the recent crisis. in this environment, islamic finance needs to continue to evolve to remain effective and competitive. the islamic financial system does not exist in isolation and will continue to develop as an integral part of the global financial system. as part of efforts to ensure sustainability in this new and more challenging environment, a task force on islamic finance and global financial stability was formed by the islamic development bank ( idb ) and the islamic financial services board ( ifsb ). the report, which was completed in april this year, sets out eight areas that need to be further strengthened to bring the islamic financial system to a higher level of performance in this new economic and financial order that is emerging. a recommendation of the report is the establishment of an islamic financial stability forum ( ifsf ) based at the ifsb as a strategic platform for productive dialogues to promote