the early years of the development of the islamic financial system, our focus of attention was on the development of the islamic banking system and to expand the number of players and volume of activity. following the introduction of the dual banking system, the pace of expansion increased significantly. in two decades, the total assets of the islamic banking industry have increased from usd97 million at the outset to usd20 billion as at end - june 2003. similar expansion also took place in the takaful industry whereby the assets have increased significantly from less than usd30 million in 1993 to usd1 billion in june 2003. the islamic capital market in malaysia also recorded significant growth whereby the outstanding islamic private debt securities accounted for usd17. 8 billion, or 65 % of the total outstanding private debt market while the new issuance of islamic private debt securities in the first eight months of 2003 amounted to usd1. 7 billion. what is more encouraging is that more than one third of the new issuance of islamic debt securities were issued by companies owned by non - muslims, some of which includes multinational companies. the evolution of an appropriate financial structure would need to take into account the role of the financial system in the economy and the objectives that need to be achieved. in the context of an emerging market economy, the financial system is a means to an end. the appropriate financial structure, particularly in emerging market economies, need to be designed to meet the requirements of the economy. the financial system needs to be in a position to support the real sector, changing and evolving with the changing needs of the economy. the strategy adopted in malaysia is to develop a comprehensive islamic financial system that is able to operate in parallel with the conventional financial system. the key constituents within the islamic financial system, which includes the islamic financial institutions as well as the capital and money markets need to be firmly reinforced by the legal and regulatory framework that adequately address the unique characteristics of the industry. these intradependent key components ultimately form the enabling environment for the islamic financial services industry to effectively play its role as an efficient conduit for mobilising resources and channelling them to productive purposes. the absence of any one of the components could reduce the effectiveness and efficiency and could affect the viability and sustainability of the system. while the islamic banking system plays an important role in mobilizing deposits and providing financing, the development of the capital market allows the corporate sector to source their long - term financing needs based on islamic principles. in addition, it would increase the

of islamic securities further diversifies the asset classes and the investment alternatives available to investors, expanding the breadth and depth of the islamic financial market and enhancing its liquidity. the comprehensive shariah and legal infrastructure that has been put in place has also increased the level of confidence in conducting islamic financial transactions. in addition, the conducive tax regime which accords neutrality in treatment between islamic and conventional financial products sets the stage for greater innovation to take place to support the progressive development of the islamic financial services industry going forward. with this strengthened islamic financial infrastructure now being firmly achieved in the first phase of the financial sector masterplan, the islamic financial services industry is poised to tap new growth opportunities and maximize the full potential of islamic banking and finance. the entry of commerce tijari bank berhad into the islamic financial services industry at this juncture is indeed timely. the challenge that lies ahead calls for strategic positioning to maximise the potential that a universal islamic banking licence accords in tapping new growth areas. while islamic retail, corporate and investment banking product offerings have grown in sophistication, financial activities such as private equity investments, real estate investments, private wealth and fund management are now rapidly gaining prominence. there is therefore a need to allocate adequate resources to build distinct capabilities in these newly emerging areas. the move into these strategic niche markets would also increase the diversity of new asset classes for islamic investment. this would not only contribute to further enhance the effectiveness and efficiency of the financial intermediation process in the islamic financial system but also enhance malaysia ’ s potential as an attractive international hub for islamic finance. in addition to tapping the vast growth opportunities that reside within the domestic environment, the enhanced economic and financial linkages between malaysia and the rest of the world has also opened up the potential for new opportunities by venturing abroad and thereby strengthen the global integration process. on this note, it is my pleasure to congratulate the commerce group on this occasion of the official launch of commerce tijari bank berhad. significant potential exists for commerce tijari bank berhad to achieve a quantum leap by leveraging on the integrated financial services and operating infrastructure of the commerce group. i wish commerce tijari bank berhad every success in this endeavour and i look forward to its contribution to the further development of the islamic financial services industry in malaysia. ladies and gentlemen, dengan lafaz bismillahirrahmanirrahim, “ commerce tijari bank