trend also needs to be complemented with similar evolution in the socio economic aspects of islamic finance such as waqf and zakat. a stronger zakat and waqf system would not only complete the equation for a comprehensive islamic financial system that supports a more equitable distribution of wealth to ensure fairness and equity, it will also become the user of the islamic financial services particularly in the management and investment of the zakat and waqf funds. in addition, access to islamic financial services to micro enterprises would bring such activities into the economic mainstream and improve their level of performance. conclusion as islamic finance advances forward to become an integral component of the international financial system, continuous efforts are needed to further develop the domestic financial system to meet the changing requirements of a highly dynamic and rapidly evolving environment. in our quest to build a viable and sustainable islamic financial system, the aim is to contribute to the channeling of capital flows to productive investments, create wealth and promote economic activities, that conforms to the principles and values of shariah. with this, the islamic financial system will ultimately bring benefit not just among muslims but with the rest of humanity, insyaallah. thank you.

2016, shariah - compliant trade finance accounted for 24. 1 % of total trade finance provided by the malaysian banking sector. however, our islamic finance industry only financed about 5 % of total exports in malaysia, again, signifying an untapped growth area with large potential. increasing bank financing for smes would also encourage more market based solutions to meet the funding needs of the halal sector participants, which are now largely reliant on government initiatives. there are however a number of challenges that may impede trade finance facilitation by islamic finance players. i would like to highlight two. first is – “ process inefficiencies ” – that can contribute to higher operational risks such as fraud. this can be mitigated through use of technology that reduces reliance on traditionally document - intensive and multi - tiered manual processes. in malaysia, i am happy to note that six islamic banks have embarked on digitalisation of trade finance processes – through an integrated web - based platform that offers trade finance and working capital management solutions. the second challenge is, – the need to improve connectivity between the islamic finance industry and the international trade community – to facilitate effective intermediation of trade finance needs. again, the use of technology can ease the application and submission of trade - related information and documents which can expedite the whole process. if these challenges are not addressed, industry players are at risk of becoming irrelevant in the trade finance space. this is due to increasing competition from fintech companies that are able to serve smes and the underserved market more effectively as compared to a traditional credit intermediating bank. tawreeq, for example, a uae - luxembourg fintech platform, – offers supply chain finance solutions including shariah - compliant trade finance securitisation – to smes and their corporate partners. how do we lessen the risk of being overtaken by such competitors? one way is for the islamic finance industry, to tap into the expertise of fintech companies – by exploring mutually beneficial partnerships – to develop innovative financial solutions for the international business community. in malaysia, the regulatory sandbox is supportive for industry players to explore innovative ideas and test prototype of technology solutions for trade finance. increasing trade flow of halal products – also offers large opportunities for takaful operators to develop innovative solutions for trade - related risks. a good example is trade credit takaful. this however, necessitates the development of requisite expertise within the