This has improved with the various initiatives that we have undertaken in creating awareness and working with the industry, government and agencies to expand the offerings and the use of Islamic trade finance facilitation with the share growing to 31.4% in 2020. However, we have to acknowledge that we may still have much to do and we look forward to the report which I have been informed also shares a host of ideas and recommendations for us to take forward. Before that, please allow me to share some thoughts on some of the important thrusts that we see for us to take into consideration as we continue our work in this. Firstly, we critically need trade-based solutions to ease liquidity constraints. The pandemic, which led to subdued domestic demand and stringent COVID-19 containment measures, has resulted in a liquidity squeeze among Malaysian businesses, particularly the SMEs. To stay afloat, some companies have had to resort to increased debt to meet their payment obligations. 1/4  BIS central bankers' speeches  While measures have been introduced to lessen the burden of SMEs in the form of wage assistance programmes, support grants and deferment of financing instalments, these are merely a temporary backstop akin to a band-aid. Prolonged assistance of this form may not be sustainable. The over dependence on debt-based instruments also reduces the financial flexibility of businesses in supporting their recovery. Trade-based solutions can offer a viable option where funding is tailored to the lifecycle of production.
It also takes into account Malaysia’s aspirations to become a high valueadded, high income economy. Within the global economic landscape, emerging economies will assume a more significant role. While emerging economies will continue to be affected by global developments, most are able to demonstrate resilience and are expected to remain on a growth trajectory. By 2030, emerging economies are projected to account for 60% of total world output, from the current 40%. At the same time, the economies and financial markets in the global economy and international financial system have become more interconnected as a result of greater crossborder trade and financial flows. The continued development and deepening of our financial markets and increased financial liberalisation in emerging economies will reinforce this trend towards greater interconnectivity. More recently, the financial sector has been the target of a renewed focus and priority by the international community. Wide ranging financial reform measures have been introduced in the aftermath of the global financial crisis to address the weaknesses that have surfaced during the crisis. Several changes are also transforming the domestic environment. New domestic sources of growth, the greater role of the private sector in the economy, demographic changes, rising incomes and a growing middle class, and the accelerated pace of urbanisation cumulatively will significantly change the demands on the financial sector.