. monetary policy is being eased aggressively around the world. so is fiscal policy. one of the striking features of the recent g 20 meetings was the way the need for fiscal stimulus, where debt levels permitted, was readily agreed between participants, and actively encouraged by the imf. of course, agreeing to things in general at a meeting is only the first, and the easiest, step. actual policies have to be delivered and in a timely and effective – and hopefully consistent – way. i use the word “ consistent ” because it is preferable, in my judgment, for action to be broadly consistent and timely, than for it to be precisely co ordinated but delayed. it also remains to calibrate the extent of the measures appropriately for the circumstances, which is no easy matter. nonetheless, it seems to me that all this is happening faster than on previous occasions. it would not be realistic to suggest that this response has been, or ever could be, so fast and so well targeted that significant near term weakness in the global economy can be avoided. the data coming in by the day confirm that there is an international downturn taking place, and that it shows every sign of being a deeper one than the rather shallow affair of 2001. the question is whether we have reasonable grounds to expect that the combination of private and public efforts to address the financial problems, a subsidence of the sheer panic in financial markets and the use of macroeconomic policy to provide stimulus to weak economies will establish sound foundations for a renewed period of expansion beginning some time in 2009. the inauguration of a new us administration is a key opportunity. the economic downturn has been deepening during the transition period. but if the new team can announce credible plans to accommodate the required adjustments in the us economy, confidence in medium term prospects can be re built. this would assist both the us economic recovery and conditions elsewhere. thinking ahead, the next international expansion will no doubt have some different characteristics from the previous one. it cannot be based on a continual gearing up by consumers in developed countries and associated asset price escalation. for that reason, neither can it be characterised by the continued large build up of balance of payments surpluses by the emerging world. the secular increase in living standards in emerging countries ought to play a bigger role in driving global demand – and that will depend on appropriate policies in both those countries and the developed world. it looks like there will be a fairly prominent role in the near term, in many

world where he has the resources he requires. i believe by doing this, we can develop better economic theories and finance solutions where fundamental shariah principles can be fully crystalised to achieve the objectives ( maqasid ) of shariah. in the recent budget announcement, the government has allocated rm20 million for research and innovation relating to islamic economics and advancing our thought leadership. while this has been entrusted to inceif and the mifc leadership council, it is our hope to bring the stakeholders together and collaborate in producing impactful and practical research that could unlock the application of economics and values in the modern financial system. on this note, we must continue to seek purposeful use of finance for the common good. albert einstein once said, " the world as we have created it is a process of our thinking. it cannot be changed without changing our thinking ". i hope this conference will spur deeper discussions about fundamental aspects of islamic finance so that we can jointly empower change and elevate the impact of islamic finance to much greater heights. lastly, what is true is from allah s. w. t. what is false, i humbly beg your forgiveness, is from me. with that, i wish all of you a productive discourse ahead. wallahu a'lam. thank you. 5 / 6 bis - central bankers'speeches 1 source : islamic finance development indicator report 2022 2 as time has passed, the form of money has naturally evolved to adapt to the changing economic landscape – from hard money ( e. g. metal coins ), to claims on hard money ( e. g. promissory notes ), to fiat money as per in present days. 3 this is based on a hadith by prophet ( pbuh ), " it is not permissible to sell something that is not with you nor to profit from what you do not bear the risks ( associated with an asset ) " ( narrated by ibnu majah ). 6 / 6 bis - central bankers'speeches