is a clear need for the takaful industry to deliver innovative financial products and services, that can effectively compete with those offered by conventional insurers. while acknowledging the necessity of having different rules in certain areas to reflect the underlying fundamental differences between the two systems, a key consideration of the bank is to maintain a level playing field. given the functioning of islamic finance in parallel with the conventional financial system, neutrality in treatment between takaful and conventional insurance products is considered important to ensure the sustainability of both systems in the economy. the dual system would also serve to provide a comprehensive array of financial products and services as well as intermediaries for the overall benefit of consumers. allow me to also share with you malaysia's latest initiatives to strengthen its position as an international islamic financial centre. in line with our efforts to enhance our inter - linkages with the global islamic financial markets, the malaysian government has launched the malaysia international islamic financial centre or mifc as part of the initiatives to position malaysia to become a leading international islamic financial centre. it is our objective to build greater intermediation linkages between east asia, south asia and the middle east which will, in turn, further expand inter - regional trade and cross border investment flows. as part of these initiatives, foreign financial institutions are allowed to establish international islamic banks, international takaful operators, as well as international currency business units to undertake international currency business in islamic finance with non - residents in malaysia or abroad through a locally incorporated entity or a branch. the malaysian government has also focused its efforts towards strengthening its position as an international takaful and retakaful centre, with particular emphasis on widening and deepening the retakaful sector so as to effectively complement the growth and expansion of the takaful industry. in this regard, i wish to invite strong and qualified applicants to make malaysia as their centre for retakaful activities. foreign applicants with strong credentials are certainly welcome to conduct retakaful business in malaysia. the changing global investment climate continues to pose challenges for life insurers in respect of their life fund investment. the recent sub - prime crisis in the us has induced greater fluctuations of the yield curve as well as higher volatility in the equity markets. given the increased proliferation of innovative products with investment guarantees, insurers'remain very vulnerable to the movements of the capital markets. as for traditional noninvestment linked business, asset - liability management and duration mismatch continue to pose a challenge, and

to develop the necessary infrastructure to facilitate consumers in obtaining redress, information and advice on matters relating to financial services. these include the implementation of the consumer education programme and the establishment of a dedicated customer service centre ( bank negara malaysia link ) and contact centre ( bnm telelink ) to improve access to information on financial products and services by members of the public. as we advance forward, changes in the global economy and international financial landscape will continue to be dynamic and the level of complexity and sophistication in the financial markets will further intensify. achieving success in an environment fraught with greater uncertainty and more intense competition, will ultimately hinge on the ability of the industry players to continuously innovate and deliver enhanced value propositions to customers. on that note, ladies and gentlemen, i hope that the 23rd pic will not only be a platform for industry leaders to share and explore ideas for the benefit of the life insurance industry, but more importantly, to be followed up with affirmative actions on the part of the delegates involved. sir winston churchill once said, " there are plenty of good ideas if only they can be backed with the power of action ". with that, i wish you a fruitful conference. thank you.