. it is therefore important that financial institutions are thinking about transition targets with a clear and separate focus on also increasing the share of financing to businesses that can develop and scale green technologies and processes, or that are already operating under a low - carbon model. to support this, the jc3 will build on the successful implementation of the greening value chain pilot programme to onboard more strategic pilot projects that will enable the financial sector to test new public - private partnership modalities to support the scaling up of green and transition finance. to this end, engagements have commenced within jc3 to embark on a new pilot initiative for greening industrial parks, and expand an existing pilot to encourage the adoption of green technology in the agriculture sector. second, rebalancing loan and investment books to support genuine transition finance calls for a strategic shift that visibly cuts across a bank's business operations, customer engagements, products and services, and financial and risk management, to deliver a credible transition plan. consistent with a just and orderly transition, it will be important to consider the specific needs and ambitions of clients in the execution of banks'2 / 4 bis - central bankers'speeches transition plans. also important will be strategies for facilitating a managed phase - out from high emitting exposures that do not meet transitioning criteria in order to mitigate risks of financial exclusion and stranded assets. but if transition plans are sitting outside, and separate from, banks'core business and risk policies or operational frameworks, then legitimate questions could be raised on the credibility of such plans. third, we expect banks'transition finance frameworks to be consistent with and capable of being mapped to the guiding principles for classification under the ccpt. this will serve to promote greater consistency in standards applied to evaluate meaningful actions by businesses to align their operations with a low - carbon and climate - resilient economy. to this end, jc3 will continue to lead efforts to develop and maintain guidance and new use cases to support the implementation of ccpt by financial institutions. in addition, jc3 will work with ministries on developing a list of projects and activities within identified sectors that can be categorised as green or transition activities. initial focus will be on the energy, mobility and carbon capture, utilisation and storage sectors. the financial sector in malaysia has made important strides over the last five years to put in place the foundational frameworks and build capabilities needed to manage climate - related risks and support transition. these include the ccpt, disclosure

contribute towards reducing the prevailing imbalances. malaysia's own agility to absorb and respond to the external and domestic challenges has allowed us to efficiently shift resources to new areas of growth, to new areas of comparative advantage and thus, sustain our long - term prospects. going forward, malaysia's economic policy will therefore continue to focus on ensuring that the economy's flexibility and resilience is sustained. with the strengthening of the economy, the financial system and our fundamentals, the opportunity has been taken to deregulate and liberalise the environment further. the most recent policy initiative in this direction has been the shift in the exchange rate regime to a managed float. under this regime, exchange rate stability will continue to be a primary objective of exchange rate policy. malaysia is a trading economy that is highly integrated with the world economy, and in this context, a stable exchange rate environment continues to be important. with changes in the international economic and financial environment, the move towards a managed float was important to enable malaysia to maintain a stable exchange rate against its major trading partners. under this arrangement, bank negara malaysia will now monitor the exchange rate against a currency basket to ensure it remains close to fair value. the transition to the new system has been orderly, with transactions mainly reflecting trade and foreign direct investment as well as portfolio investment activities. as providers of long - term capital and efficient risk transfer solutions for productive economic activity, the insurance and takaful sectors play an important role in supporting the economic transformation process. over the years, that role has increased in prominence with the impressive growth achieved by the industry. in 2005, the insurance and takaful industries have continued to demonstrate resilience and strong performance despite challenging investment and underwriting conditions. premiums and contributions have continued to expand at double digit growth rates in the first half of 2005, with the general sector rebounding strongly after two consecutive years of slow growth. the underlying fundamentals for sustainable growth have also strengthened with stronger solvency positions reported by the majority of players, continued profitability and improved underwriting discipline. the growth has also been accompanied by enhancements to the competitive structure, improvements in innovation and a greater degree of differentiation in the market, offering consumers a wider range of products and services. in particular, the advent of bancassurance and bancatakaful has seen more players packaging life insurance and family takaful with innovative investment options that incorporate banking product features. today, bancassurance and bancat