system can be resolved by the home regulators and shariah authorities, the integration of islamic finance with the international financial system brings with it many challenges. there is a need for mutual recognition of financial standards and products across jurisdictions. the progressive harmonisation of shariah, in this respect, needs to be viewed as a driver towards greater international financial integration. such a convergence and harmonisation can only happen with greater engagement among the regulators, practitioners and scholars in islamic finance in the international community. the annual international shariah scholars'dialogue that has been taking place since 2005 is aimed at achieving this objective. this dialogue has served to promote interactions between shariah scholars from around the world contributing towards greater understanding and international convergence. in malaysia, the efforts to enhance the international dimension of our islamic financial system have been intensified in the more recent period to facilitate greater international trade and cross - border investment flows. the new initiatives that have been announced allow the establishment of new international islamic financial institutions that will be permitted to offer the full range of islamic financial services to residents and non - residents in international currencies. these initiatives also aim to serve as a catalyst for the development of the domestic financial markets as well as the development of talent and knowledge in islamic finance. collaboration with other emerging regional centres in islamic finance will be an important part of this process that will contribute towards greater international financial integration. the establishment of the islamic financial services board in 2002 represents a major structural enhancement in building the international financial architecture for islamic finance. the achievements thus far by the islamic financial services board in developing the prudential standards that can be universally applied have been very encouraging. the efforts represent a testimony of the collective capacity for greater international collaboration which has contributed towards strengthening the fabric of islamic finance. while the legal framework and rules are constantly being reviewed to ensure that they remain relevant for the new areas of financial activity, it should not only be undertaken for the domestic islamic financial system but also in the context of the international financial system. conclusion in closing, i would like to take this opportunity to congratulate the islamic financial services board for commissioning the " surveys on legal and shariah issues in the islamic financial services industry ". the survey findings represent an important contribution towards augmenting the literature on the existing legal and shariah framework across different jurisdictions. it serves as a useful source of reference for countries that are interested in establishing a legal and shariah framework for their islamic financial system. deliberation on the survey

abdul rasheed ghaffour : islamic finance and halal industry opportunity, impact, synergy remarks by mr abdul rasheed ghaffour, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the islamic finance rendezvous series " islamic finance and halal industry opportunity, impact, synergy ", kuala lumpur, 1 october 2019. * * * " opportunity... impact... synergy... ”... introduction in malaysian... malaysia is well - positioned to capitalise on huge opportunities in the global halal industry the global halal business is thriving. this creates abundance of opportunity. in its report on “ the state of the islamic economy 2018 – 2019 ”, thomson reuters projected the size of global halal industry to grow from usd2. 1 trillion in 2017 to usd3. 1 trillion by 2023. growing global population of young and affluent muslims1, is among the main drivers supporting such demand. domestically, this is further supported by the malaysian demography of muslim - majority. as a nation, malaysia has the necessary ingredients to seize the opportunity. infrastructure for halal business is comprehensive. the halal certification programme by jakim is internationallyrecognised and well - sought after. malaysia also has a mature domestic islamic financial system that stands ready to respond to the evolving and growing needs of businesses. this is evidenced by malaysia reigning the thomson reuters global islamic economy indicator index ( giei ) for five consecutive years. the global numbers are exciting. the prospects are great. but, malaysia remains a small player in the halal trade internationally. as at q4 2018, halal exports amounted to rm40. 0 billion or only 4 percent of total malaysian exports, of which halal exports by small and medium enterprises ( smes ) account for a mere 8. 4 percent2. to capture the market, businesses in the halal industry need to be agile and be quick to respond to changing consumer preferences and behaviours. this means business practices and processes need to be re - calibrated to be more aligned with sustainable expectations. similarly, quality enhancements are given expectations in terms of product offerings, using a more current and efficient distribution channels and payments methods. in conjunction with japan olympic 2020, for example, there is a strong demand for halal products with high traffic of tourists, supporters and spectators. companies which are able to satisfy the high bar placed by japan on production, quality, safety and health