the non - lending roles more than ever, development financial institutions need to step up to promote new growth areas. they should perform a broader role to stimulate economic activity that would not otherwise take place. they could also improve the quality and scale of such activities. they can provide unique value propositions in terms of advisory and nurturing new growth sectors to become profitable and thus, attractive for private investors. i will highlight two successful examples. firstly, in the korean wave example, they were the first to spearhead investments in the film and music industry. at that time, commercial banks did not have the capability to assess the viability of the industry, nor accept the intangible assets offered as collateral. it was only much later, 1 / 4 bis central bankers'speeches when the industry recorded healthy profits that private investments followed. the success speaks for itself. between 2008 and 2011, private domestic and foreign investments in the culture content industry had quadrupled to more than usd 157 million. the second example is uganda ’ s first ever private bond issuance by a multinational mobile telecommunications company. the provision of a financial guarantee by a development financial institution helped to connect uganda ’ s poor and low income population in more than 20 rural communities by enabling access to telecommunication services. this culminated in the telecom industry that now provides 135, 000 jobs for ugandans and contributes 1. 4 % of its gdp. taking lessons from these examples, i believe that development financial institutions need to possess three key traits to promote and champion the new growth areas : a. first, they must have specific mandates to develop and prioritise niche segments identified to be of strategic and economic importance. these will give them legitimacy with funders and partners ; b. second, affiliations with government, ministries and agencies to facilitate the design of appropriate government support. this will enable them to take higher risks ; and c. third, a broader focus on socio - developmental goals allows risk - return trade - offs to take into account positive externalities for the economy. the lessons we learnt imply that leaders must recognise and align their priorities to steer their respective institutions to contribute more broadly and strategically to economic development. this will include playing a more active role in technical assistance, and serving as key repositories of specialist knowledge, resource aggregators for strategic development projects and credible advisers to the government. these ‘ additionalities ’ are important ingredients in ensuring the effectiveness of development financial institutions. strengthen accountability frameworks through performance standards that emphasise development additionalities while

the bancassurance captured 45. 3 % of the new life insurance business premiums generated in 2005. through efficient cost structures of bancatakaful and with the entry of joint - venture takaful operators involving banks and savings institution with extensive nationwide branch network, the takaful industry should maximize the potential of this alternative distribution channel. finally, on the global front, islamic finance has made significant inroads and has achieved growing global recognition. another significant milestone in the progress of islamic banking and finance as recently announced by bank negara malaysia is the initiative to enhance the position of malaysia as an international islamic financial centre ( mifc ). with the vibrant domestic islamic financial industry that has become an integral component of the financial system, malaysia is now well positioned to be an international centre of origination and issuance of islamic financial instruments, fund and wealth management, islamic financial activities in international currencies and takaful and retakaful businesses. as at year 2005, the total gross contributions from takaful business outside malaysia recorded an insignificant proportion of the total contributions of the industry. the relatively low participation of takaful operators in international business, is however set to change with the recently announced mifc initiatives, to allow qualified local and foreign financial institutions to conduct the full range of islamic banking and takaful businesses in foreign currencies. it was also announced in the recent budget that attractive tax packages in terms of 10 year tax holiday are given to all takaful operators on their international currencies takaful business. in addition, mifc accords greater operational flexibility for the islamic financial institutions to conduct islamic financial services in foreign currencies from anywhere in malaysia. to ensure effective delivery system under mifc initiatives, the mifc executive committee, with bank negara malaysia as secretariat, has been set up to provide directions and drive implementation of policies and strategies to foster effectiveness and efficiency of the mifc. well capitalised and reputable financial institutions that possess sound track record are encouraged to set up international takaful operation in malaysia to conduct out - out takaful and retakaful businesses. the malaysian takaful operators should seize the opportunity to venture into out - out takaful business establishing an international currency business unit to offer takaful business in international currencies. ladies and gentlemen, in tandem with the rapid changes and expansion of the islamic financial sector, it is vital for us to have a strong, continuous support in talent management and