the improved sentiments following these measures, the ringgit has strengthened by 14. 6 % in 2017 and 2018 thus far. the ringgit has also been of the most stable currency in the region. as our economic outlook remains strong, the ringgit will continue to reflect this strength. for bank negara, we have always indicated that market forces will determine the value of the ringgit. there has never been a target level for the ringgit exchange rate. with the economy and financial markets constantly evolving, fixation on a particular level of ringgit exchange rate is counterproductive, if not detrimental to the economy. what matters for bank negara and all of us here is to ensure that any adjustments taking place is done in a gradual and orderly manner, without causing undue disruptions to businesses and households. the foreign exchange market can sometimes be very fickle. therefore, we should always remain on our guard, as the global economic and financial conditions may change rapidly following many developments such as normalisation of interest rates, geopolitical risks and the tendency to adopt policies that might curtail open trade. the ringgit ’ s recent appreciation and stability is not something that we should take for granted. what we have learnt in recent years is to never downplay the unexpected. the rapid decline in global oil prices, drastic disruptive policy shifts in major economies, and the more recent increase in trade tensions are prime examples of tail - risk events that will continue to affect our economy and the ringgit. similar to the malaysian economy, while we have witnessed progress and growth of the malaysian takaful industry, moving to the next level requires us to move away from status quo and to do things differently. therefore i urge the industry to not waste any more time in thinking anew and strengthening its capacity to play a much more meaningful role in supporting sustainable and inclusive economic growth. let us all be committed to realise the values that are fundamental to the benevolent mission of takaful. i would like to take this opportunity to congratulate tonight ’ s award winners. i am confident that such recognition will motivate you and all parties to continue to contribute and strengthen the growth of the takaful industry. thank you and enjoy the rest of the evening. 6 / 6 bis central bankers'speeches

for businesses. this is especially true for innovative small and medium scaled enterprises whose value tends to be more closely linked to intangible assets. to a large extent, this is because ip issues are still not well understood. the financial industry has not devoted enough resources to this increasingly critical sector for future growth. frameworks within financial institutions for lending against ip are consequently not well - developed. this is quite surprising when one considers that way back in the 1880s, ip was first used as collateral to secure funding by thomas edison with the incandescent electric light bulb. it was ground - breaking. it was a feat ahead of its time. ip is an ownership over an innovation. innovation reflects an investment in a knowledge assets with an opportunity to make profits. thus, understanding ip makes good business sense and offer fund providers a good opportunity for business growth and opportunities. greater recognition of ip as a relevant factor in financing decisions is therefore a proven concept. different financial players harness the potential of ip in different ways. the varying business models and risk appetites within the financing ecosystem will determine how ip fits bis central bankers ’ speeches into financing considerations. for example, banks have to prioritise depositors ’ interests and would not be expected to finance ventures with high risks. however, this is not true in all cases. smes with proven track records should be within banks ’ sights, in such cases the value - add of ip should be more effectively leveraged. indeed, in other emerging economies, progress has been evident. the thai sme bank, chinese bank of communications and the federal development bank of brazil already take ip into consideration for financing. malaysia ’ s financial services industry should also take this opportunity created by this new growth industry. therefore, it is an opportune time that the boards and senior management of the financial service fraternity in malaysia to begin to actively explore pragmatic approaches to assimilate ip into existing financing considerations. an important starting point is building a stronger knowledge base of ip issues within financial institutions. this includes identifying staff within your institutions to learn about these issues and providing them with local and international opportunities for training or exposure in ip. the industry, working together with relevant authorities, agencies and trade associations, should also come together to agree on specific initiatives to overcome barriers to the more effective use of ip assets in financing considerations. this includes developing practical guidance for both businesses and financial institutions in identifying, managing and valuing ip assets, and a way to include such assets within an institution ’