term. from my perspective, this arrangement has a couple of advantages. first, it enhances the credibility of the monetary regime, as it demonstrates that the inflation target is owned by both the government and the central bank. second, it offers a degree of flexibility, as the target is not set in stone. the target and the accompanying language can be changed if both the central bank and the government agree. the other elements of the rba ’ s mandate are full employment and the economic prosperity of the people of australia. in terms of full employment, we do not have a numerical target and i don ’ t think it makes sense to do so. experience has taught us that the non - accelerating inflation rate of unemployment ( nairu ) moves over time and is influenced by many factors outside the control of the central bank. the same could be said for the estimate of the employment - to - population ratio that is consistent with full employment and stable inflation. setting the wrong targets would create a conflict with the inflation target, which would lead to policy uncertainty and poor outcomes. despite the difficulty of setting a numerical target here, i am a strong supporter of the rba ’ s broad mandate, which includes not just full employment but also the economic welfare of the australian people. i say this from two perspectives. the first relates to communication. i see a benefit in the central bank being able to communicate that it cares about more than just inflation control. to be clear, inflation control is, and always needs to be, core to what a central bank does. but ultimately, inflation control is only a means to an end ; and that end is a productive economy, with people enjoying economic and financial stability, having jobs and achieving a high level of economic welfare. having a broad mandate allows the central bank to pursue and articulate its goals in these broader terms. this can help build trust in the central bank and support public confidence in its decisions. that is not to say that a broad mandate is required for the central bank to speak in these terms, but i think it makes it easier to do so. the second perspective is that a broad mandate can provide an extra degree of freedom in 2 / 4 bis central bankers'speeches responding to economic shocks. this is especially so in the case of supply shocks, where output and inflation move in different directions. a broad mandate allows the central bank more time to return inflation to target following shocks that push inflation below or above the target. provided the inflation target is credible,

assistant governor ’ s welcoming remarks at the signing of the first esg islamic repurchasing agreement speaker : encik adnan zaylani mohamad zahid / venue : ibfim kuala lumpur / language : english / speech / interview date : 17 jun 2022 / distinguished guests, ladies and gentlemen. assalamualaikum w. b. t and a very good afternoon. malaysia has been ranked first among 135 countries in the global islamic finance development indicator and first among 81 in the global islamic economy indicator, both for the 9th year running, something we are all proud of. the financial sector blueprint 2022 – 2026 sets out bnm's development priorities for the financial sector over the next five years. one of the thrusts is to “ advance value - based finance through islamic finance leadership ” aimed at spurring growth that is progressive, sustainable and inclusive. this includes strengthening malaysia ’ s proposition as an international gateway for islamic finance, augmenting the malaysia international islamic financial centre ( mifc ) agenda. as part of our effort to raise the bar and catalyse global opportunities, there will be several areas of focus but one that is highly relevant for today is our emphasis and a greater focus on opportunities in sustainable finance. this builds on our pioneering work in vbi, and synergise with our efforts on climate and environmental risks – a key piece of the sustainable finance agenda. the sdgs funding gap of oic countries is estimated around usd 1 trillion a year, hence represents a major opportunity for us. our robust regulatory infrastructure, sound shariah governance framework, wide international connectivity, diversified players and products, elevated by the malaysia international islamic financial centre ( mifc ) agenda, provides a conducive landscape for the islamic financial industry to tap into emerging opportunities in these areas of focus. to underpin this is the development of a vibrant islamic financial market. as part of financial market committee ’ s ( fmc ) effort to further develop the onshore financial markets, we have established two subcommittees : the bond market subcommittee and the islamic financial market subcommittee to formulate specific market development initiatives to take us forward. the creation of these subcommittees underlines the importance of both of these markets in the context of overall development of the domestic financial markets. the islamic financial market subcommittee will review the current landscape to identify and address challenges to the continued growth and development of the islamic financial market, particularly in light of the growing importance of malaysia '