particular, intra - regional trade and investment activity has increased significantly in this recent 15 years. since 1990, asean intra - regional trade has grown from 18 % to 24 % of total trade, and intra - regional investment has quadrupled since 2000, from 4 % to 17 % of total investment. while there has been a trend towards greater intra - regional trade and investment, financial integration in the region has lagged behind. this has raised questions on whether in fact regional financial integration is important, given that the lack of it has not been an inhibiting factor to economic integration. asean economies, however, have now reached that stage of development in this decade whereby greater regional financial integration will raise further our growth potential. an important key to unlocking our full potential is to accelerate this integration and cooperation within the asean region. main benefits of financial integration an intensification of financial integration in asean will not only serve to enhance growth at the national level, but also act as a catalyst to achieve a growth that is mutually reinforcing bis central bankers ’ speeches for the economies in the region. regional financial integration will bring about the more effective intermediation of funds and thus the efficient allocation of resources in the region. excess savings in one country can be channeled into productive investments in another country within the region, thereby promoting growth. the asean region has one of the highest savings rate in the world, at approximately 30 %, as well as international reserves amounting to usd800 billion. the bulk of asean ’ s surplus funds, however, are intermediated mainly through the international financial markets before being reinvested back into the region. in particular, more than 90 % of cross - border portfolio investment flows are channeled to the advanced economies. given the immense funding requirements that asean has, particularly for large investment projects and infrastructure development, greater financial integration will facilitate channeling part of the region ’ s surplus funds towards productive investment opportunities in the region. regional financial integration will also allow for more efficient risk diversification of assets to include foreign assets from within the region. this will not only reduce vulnerability to external developments but will contribute to achieving more stable conditions in the regional financial markets. additionally, this trend has been reinforced by greater coordination and cooperation among the regional central banks and regulatory authorities to safeguard financial stability. the collective actions that have been taken have enhanced the ability to manage and respond to risks confronting the region. greater financial integration has also created an enabling environment for businesses. it has facilitated improved access

enrolment will commence in june 2006. inceif also offers post - graduate programmes in islamic finance that will include specialised masters and ph. d. programmes in the various islamic finance disciplines. inceif will be governed by the inceif governing council and the professional development panel. the inceif governing council, comprising eminent local and international professors from the academia and industry practitioners, will set the strategic direction and provide visionary global insights on the learning needs of the islamic financial services industry. the professional development panel, with vast experience in the islamic finance industry and academia well represent the authority in academic matters and will have the responsibility for establishing the academic policies of inceif as well as the quality assurance of the cifp and post - graduate programme modules. the academic faculty will include permanent as well as regular visiting professors and scholars - in - residence. inceif will also form strategic alliances with leading local and international learning institutions to complement our pursuit to provide world - class knowledge for the benefit of the industry in particular, and the ummah in general. it is our vision that inceif will one day be an international nucleus for tertiary education in islamic finance, training and research and provide a strong support in the development of islamic financial infrastructure. with the grace of allah, and with the support of the international islamic financial community, it is our hope that inceif will make a meaningful contribution to the future development of islamic finance for the benefit of the ummah. in closing, once again, i would like to express our deepest appreciation to the yang amat berhormat, dato'seri abdullah haji ahmad badawi, prime minister of malaysia for gracing this occasion and for accepting to officiate the launch of inceif.