These are key drivers that will accelerate the transformation of Malaysia into a high-income economy in a sustainable and inclusive way. Last but not least, as part of the holistic review, we should be prepared that some DFIs may have to “graduate” into the mainstream legal and regulatory landscape of the Malaysian financial system. This would mean that they may no longer be placed under the Development Financial Institutions Act. This is a positive development as it reflects the maturity and success of the institution in delivering on its developmental mandates. In conclusion, the progress of the nation is a collective responsibility. All of us have our own part to play. Our roles may be different but we share a common vision towards a shared, inclusive and sustainable prosperity for all. For all of us gathered here today, this outcome is crystallised in the vision for DFIs to lift the growth and development of Malaysia. For this to happen, DFIs need to ensure that they are financially sustainable, possess the agility to support the existing and new economic drivers, and constantly measure their performance and contribution in an appropriate performance management framework. As DFIs will continue to be at the forefront of efforts to meet the SDG goals, I hope that the next two days will sow the seeds for individual and collective actions that will both transform DFIs and increase their development impact. With this, I wish all of you a productive forum. 5/5  BIS central bankers' speeches
This is particularly relevant for the Islamic financial services industry given the close link of Islamic finance with the real economic sector through the various modes of Islamic financing contracts. In particular, heightened surveillance is needed over developments in the real estate and commodity markets. Equally important is a greater understanding of the inter-relationships between the financial and the real sector, including the potential for second round effects that are transmitted across sectors of the financial system and the economy. The increased cross-border reach of Islamic finance has also underscored the importance of enhanced cross-border collaboration among the supervisory authorities. Information-sharing and effective coordination among supervisors will enable a complete understanding of the entire risk spectrum of the risk taking activities undertaken across jurisdictions by the Islamic financial institutions. This is especially important in crisis situations, given the serious ramifications of a delayed or ineffective response to cross-border contagion. Robust institutional arrangements are therefore vital to improve the efficiency of the supervisory processes and to allow for the early detection and management of cross-border transmission of risks arising from group-wide activities. Another key area is the evolution of the legal framework for Islamic finance. This is to provide greater certainty and to build public confidence in the system as a whole. This necessitates a legal framework that enforces end-to-end Shariah compliance in the Islamic financial services industry – through provisions and mechanisms that unambiguously define the conduct and governance of Islamic financial institutions.