retakaful industry to expand in malaysia and optimise malaysia as a base for tapping global opportunities. in malaysia, the aspiration to achieve 4. 8 % to 5 % insurance and takaful penetration rate out of gdp has been outlined in the financial sector blueprint 2022 - 2026. latest developments in digital takaful, microtakaful, social and green finance, together with malaysia's changing demographic landscape towards ageing population present new growth areas in which retakaful can play greater role to spur further developments. indeed, takaful and retakaful markets are inter - dependent in terms of its growth and viability, similar to the symbiosis between insurance and reinsurance. as such, strong 1 / 3 bis - central bankers'speeches growth prospects for takaful means that retakaful also stands to reap its benefits if seized in a timely manner. however, while takaful is making strides in its development, there remains gaps in the retakaful market to serve as a tool of choice by takaful operators for managing their risks. this poses a question as to how retakaful ecosystem can be further strengthened to support takaful value chain. strengthening retakaful ecosystem to support takaful value - chain i believe with the comprehensive ecosystem and facilitative infrastructure in malaysia, which is reflective of a more mature islamic finance ecosystem, retakaful players in malaysia are well - positioned to serve both the global and domestic takaful value chain. the presence of major global retakaful players in malaysia, complemented by strong domestic retakaful players, further enrich malaysia's proposition as a global gateway for islamic finance as outlined in the financial sector blueprint 2022 - 2026. several dimensions which retakaful players can strive to grow in line with the mifc aspirations include greater diversification of risks with increased cross - border retakaful business within the region and beyond, as well as expansion of retakaful offerings in innovative segments which remain relatively untapped such as agriculture as well as climate and social resilience. however, i understand that doing so comes with its own set of challenges. this is where bnm commits to engage continuously with the industry players, to work together in addressing barriers and challenges that stunt developments or expansion of the industry. one such step that bnm has recently undertaken in the space of regulatory development includes providing clarity on shariah parameters on hajah ( need

making available sme financing at reasonable cost is therefore crucial to the growth of this important sector. providing policy loans directly to smes helps, but the assistance is limited relative to the enormous financing needs and there are always concerns about economic distortions and the efficient use of public resources. to achieve greater and more sustainable sme financing, it is necessary to develop market - based approaches which are commercially viable to mobilise private sector investment into the sme sector. i encourage the adb to further work on this front, including exploring possible mechanisms such as credit enhancement and securitisation. scaling up private sector lending would require a change in the skill mix of the adb, in particular in strengthening its market expertise and risk management. partnering with domestic agencies and private sector financial institutions, other international financial institutions and developed members in the region that have relevant experience would be useful in utilising their expertise, building the capacity of the bank, and sharing credit risk. there are, of course, other important areas concerning the development of the region where the adb could play a meaningful role as identified in the new long - term strategic framework. as a member of the bank and the region, we stand ready to provide support and look forward to strengthening our cooperation with the adb in furthering the development agenda of the region. and lastly, to successfully implement strategy 2020, further enhancing the organisational effectiveness of the adb will be of critical importance. we welcome the bank ’ s commitment to develop a more robust results framework and to continue its institutional reforms, and we look forward to ongoing efforts by the bank in this regard. thank you.