to date has not been satisfactory. many players cited business viability and distribution model to be among the critical challenges in advancing this initiative beyond corporate social responsibility. this is something that takaful operators, as an industry, would need to overcome. we will need to apply unconventional thinking and take bold steps to create an ecosystem that is more enabling for microtakaful solutions to be implemented in a sustainable manner. on the bank ’ s part, we have initiated a review of the relevant regulatory framework to spur the development of inclusive protection. a consultative paper will be issued by end of the year for industry to give its feedback. conclusion as the takaful industry matures, all stakeholders will continue to set higher expectations. consumers today expect seamless experience and quality service in every aspect of the business operation. shareholders, of course, expect financial entities to offer sustainable returns 4 / 5 bis central bankers'speeches on investments while exploring innovative business opportunities. regulators expect financial institutions to adopt business strategies and operational models that are sustainable and valueadding to the economy and society. the window of opportunity for takaful to deliver meaningful propositions for all its stakeholders is wide open. the takaful industry must step up with strong stewardship towards meeting these expectations. i believe the discussion at this conference today can help us better navigate the path towards purposeful transformation of the takaful industry. i look forward to engaging dialogues ahead and productive sessions with all of you. thank you. 5 / 5 bis central bankers'speeches

islamic finance assets on the other hand have already surpassed usd2 trillion last year. all these present significant opportunities for the takaful industry to provide protection and risk management solutions – be it for trade or goods in transit, for protection of physical or financial assets, and for the protection of human livelihoods. yet, the global takaful growth ranges at only around 4 % last year. while the number of takaful operators has increased to 306, the global takaful industry still accounts for less than 1 % of the global insurance market. this calls for serious attention and more concerted efforts by the takaful industry worldwide to ideate and introduce solutions that can support the progress of the muslim community. indeed, we should also recognise that this lack of protection and coverage is holding back the economic development of the muslim community, and it is incumbent upon us to do more to improve this. takaful as a solution of choice for malaysians here in malaysia, the dual financial system which also includes conventional insurance and takaful market, is well - entrenched. the operating environment presents both opportunities and challenges for the takaful industry. undoubtedly, it must compete and present a viable alternative to the conventional insurance. at the same time, it has a unique value proposition that can meet the muslim demand and shariah requirements. the sustained demand for takaful, especially among muslims, has contributed towards the industry ’ s steady growth – from 3 % market share a decade ago to almost 18 % in 2018. the growth potential for takaful industry remains clear and promising. in 2018, almost half ( 45. 8 % ) of the malaysian population have yet to obtain protection. based on a recent demand survey, 46 % of malaysian households and 48 % of businesses responded that they are unaware about the comprehensive range of solutions that the takaful industry is able to offer. to reduce this gap, as an industry, takaful operators must collectively elevate the prominence of takaful and its capabilities to be a solution of choice for malaysians. i wish to suggest three pathways for this aspiration to be realised : first, by offering good value solutions to customers ; second, by adopting innovative tools and effective distribution strategy ; third, by inculcating sound understanding of financial protection and prudent financial behaviours among malaysians. allow me to elaborate on these. firstly, the takaful industry has the advantage of a business model that is grounded on the