identified to deal with the potential risks and vulnerabilities to the islamic system in this now more challenging international financial environment. these include steps that need to be taken for the implementation of the prudential standards ; the development of a liquidity management infrastructure ; the introduction of strong financial safety nets ; the development of an effective crisis management and resolution framework ; the development and implementation of accounting, auditing and disclosure standards ; the formulation of an effective macro prudential framework ; the development of credible credit rating institutions and processes ; and finally, to strengthen efforts for capacity building and talent development for the islamic financial services industry. given the global dimension of these building blocks, international cooperation and collaboration is significantly vital to advance these important agendas. regulatory harmonization commanding the highest level of international cooperation is particularly vital in the implementation of common prudential standards to safeguard the stability of the islamic financial system. this will contribute towards the harmonization of the regulatory and supervisory framework in islamic financial systems across borders. of importance is advancing the international standards and best practices that takes into account the distinct characteristics of islamic finance. such prudential regulation that considers the unique mix of risks associated with shariah - compliant financial business would enhance the effectiveness of the regulatory outcomes intended for islamic finance. much progress has already been made by the ifsb in promulgating an extensive set of prudential standards for the islamic financial services industry since its establishment in 2002. the ifsb has already introduced standards for capital adequacy, risk management, bis central bankers ’ speeches corporate governance and shariah governance. this important work has been significant in promoting international uniformity of regulatory frameworks and international best practices for the islamic financial system in different jurisdictions. its significant progress has benefited from the strong international cooperation and collective support from its member countries and global institutions. indeed, as an evolving global industry with varying stages of development across borders and various business structures and operating models used in the different markets, this close engagement has also allowed for the attainment of balanced views. whilst islamic finance has demonstrated resilience during the recent crisis, the ifsb has moved quickly to review its existing capital standards for possible enhancements and to incorporate new liquidity measures in its ongoing work in developing liquidity standards for islamic banking. this work is currently being addressed through the working groups for capital adequacy standards and for liquidity risk management. the overarching objective is to ensure that the salient features of islamic finance are effectively and

in asia is the rebalancing of the economies from being export - dependent to domestic demand becoming an important source of growth. rising incomes, stable labour market conditions and resilient financial systems have supported private consumption and investment activity. asia is, therefore, transitioning from being just global producers to being global consumers. asia also has the policy space to support and strengthen domestic demand. asia is becoming a huge cumulative market in the global economy. reinforcing the economic flexibility of asia is the diversity of the region. asia is one of the most diverse regions in the world in terms of size, stage of development, resources, economic structure, degree of openness and market orientation. in harnessing each other ’ s comparative advantage and leveraging on the regional complementarities, for asia as a region, the whole has become significantly greater than the sum of its individual economies. over the recent decade, this has generated a significant expansion in intra - regional trade, investment and financial flows. this trend is expected to intensify significantly going forward. the diversity of emerging asia also presents immense opportunities in terms of the growing markets across the entire spectrum of products and services. bis central bankers ’ speeches the third key trend that is shaping the future of the region is its demographic advantages. asia is by far the most populous region of the world, accounting for 60 per cent of the world ’ s population. a vast, growing and young middle class population, with increasing affluence, will be a key defining characteristic, and an underlying growth driver of asia. by 2030, it is projected that the current 500 million asian middle class will grow by more than six - fold, to be more than 3 billion. this will have significant implications on global consumption and trade patterns, and on urbanisation and infrastructure development. the scale is immense. the asian development bank has also projected that over this decade, asia will require an investment of over 8 trillion us dollars in infrastructure development. it has been projected that every year, 44 million asians are expected be added to the urban population. the opportunities generated by these trends are being further enhanced by greater regional economic and financial integration. the intensification in regional integration will not only contribute towards accelerating asia ’ s growth momentum, but also further strengthen the resilience and stability of the region. the increased intra - regional trade and investment linkages within asia over this recent decade have strengthened asia ’ s economic resilience to external shocks. indeed, the changing