heng swee keat : monetary authority of singapore ’ s initiative to develop singapore dollar sovereign - rated sukuks speech by mr heng swee keat, managing director of the monetary authority of singapore, at the 5th annual islamic financial services board summit, amman, jordan, 13 may 2008. * * * introduction it is my honour this afternoon to join my ifsb colleagues in discussion of this very current topic. i am very glad that we are addressing this issue of regional integration of islamic financial services at this point. this is very timely and relevant to both the soundness and vibrancy of islamic finance. let me explain. the global islamic finance industry has grown rapidly – it is estimated that total assets are now over us $ 750 billion. this is impressive. still, this is a small proportion of conventional finance. the potential for growth is hence very large. while each country is taking measures to promote islamic finance, we can grow much faster as well as increase the scope and depth of the industry if we work towards integration at an early stage. integration increases market size, efficiency and liquidity. this in turn provides for more competitive cost of capital, spurring further growth. second, having service providers from different regions allow risks to be distributed across a wider group of players, and can improve the overall stability of the financial system. regional integration between middle east and asia, which may have different business cycles, provides a cushion for financial institutions and investors from country specific shocks. third, integration promotes greater interaction and knowledge sharing, and can help lift the standards of the islamic finance industry. in short, the 3 facets – development, integration and stability of markets – are closely intertwined. proper attention to all these 3 facets will enhance the soundness and vibrancy of islamic financial services. we are in fact seeing greater integration already with more cross borders flows, both within the middle east and asia, and between the two regions. banking and capital markets are opening up to foreign investors, more shariah products are listed on stock exchanges and islamic financial service providers are expanding their operations overseas. this is a promising trend. three tasks we should build on this positive momentum. allow me to share my views on three broad categories of essential tasks in promoting greater integration in the coming years. 1st task : promoting more economic integration first, financial integration and economic integration are deeply linked, and mutually reinforcing. hence, to promote financial integration, we also need to focus on economic integration

own workforce, to develop them and give them the best opportunity to stay relevant, the transformation of our workforce will be that much 2 / 3 bis central bankers'speeches smoother. let us mobilise and inspire our staff to inculcate a growth mindset to stay competitive and step up to take action. to help do that, ibf is pleased to launch of the # futuremenow movement. this is a call to action, for industry professionals and leaders to take ownership and contribute to enabling our workforce for the future. individuals can pledge to learn something, talk to someone about their career plans or be a mentor. ibf will work with the pledgees to realise their pledges. there are about 500 of us gathered here today. i invite you as industry leaders here tonight to be the first to be active multipliers. transforming our financial industry workforce for the future requires a collaborative partnership among all of us here : where leaders provide the example and set the tone ; where financial institutions provide the opportunity to upskill and reskill ; and where people take ownership of their own professional development. thank you for taking time to be here this evening. i wish you every success as you build up your businesses and your people, and together we build up singapore as a global financial centre offering good jobs and meaningful careers for our workforce. 3 / 3 bis central bankers'speeches