i wish to congratulate all those involved in crystallizing the electronic trading platform that is being launched today. this is a further step to create a more vibrant bond market. the growing role of the bond market in mobilizing and allocating funds not only in the domestic financial system but also across borders, to and from other parts of the world, has demonstrated the maturity of the malaysian bond market. this has not only strengthened international financial inter - linkages but has increased the potential for greater economic integration and shared prosperity.

islamic subsidiaries may conduct investment banking activities. these capital market intermediaries are also reinforced by the strengthening of the institutional investors and the fund management industry. the growing sophistication of investors has resulted in increasing diversification of portfolios with growing interest in the bond market. foreign holdings of debt securities outstanding have also increased from less than 1 % in 2000 to 15 % in 2007. and finally, these developments have been continuously reinforced by the strengthening of the financial infrastructure, the settlement system, the legal and regulatory framework to ensure the robustness and vibrancy of the bond market. malaysia has benefited immensely from the development of the bond markets. as an important source of financing, it contributes to the economic growth process. it also allows for more efficient mobilization and allocation of financial resources. with greater efficiency in the intermediation process, it reduces the cost of financing. it also allows for the increased diversification of risks both for issuers and investors. in addition, it enhances financial stability through potential diversification, increased transparency and greater market discipline. the development of the bond market also enhances the transmission mechanism of monetary policy. finally, and most importantly, the more developed bond market has enhanced our resilience to the implications of increased volatility in the international financial markets. the malaysian bond market has several distinguishing features. firstly, it comprises both the conventional and islamic bond market. secondly, the secondary and repo market is now growing in significance. turnover volume in the secondary market has been steadily increasing over the years marking the active participation in the bond market by investors. in 2007, total annual turnover volume increased by 46 % to rm777 million. there is also an increased diversity of instruments being issued ranging from asset - backed bonds, bonds bearing features such as stepped - up coupons and " floaters " and pass - through abs. malaysia is also a leader in the development of sukuks and its pioneering efforts have seen the introduction of innovative structures such as the exchangeable sukuk musharakah, exchangeable sukuk as well as sukuk based on istisna'and ijarah. this is reinforced by the diversified tenures of the issues. malaysia's strong financial links to the traditional and nontraditional markets such as in the middle east also allows issuers to diversify their investor base. malaysia therefore continues to remain an important destination for international financial flows that are traded on the new silk road. in concluding my remarks,