Malaysia has also taken advantage of globalisation to strengthen its economic and financial relationships with the major trading blocs across the globe. In 2006, the total value of the external trade exceeded RM1 trillion for the first time. Foreign direct investment has been sustained, particularly into the new areas of growth. The private sector continues as the main driver of growth for the fifth consecutive year, while the public sector plays have a supportive role. GDP per capita at current prices has increased to about USD 6,000 in 2006. While Malaysia continues to attract investment, both domestic and foreign from the traditional sectors, new sectors such as the manufacturing, services, and oil and gas sectors are gaining in importance. Resources are flowing into new growth areas such as revitalised agriculture sector, high-technology manufacturing industries and biotechnology. The services sector such as information technology services, shared services and outsourcing, health and medical tourism, and financial services, in particular Islamic finance has increased its market share. The Malaysian Islamic banking system saw in particular strong performance in 2006 with higher profitability, and has remained well capitalised. Islamic banking assets amounting to about USD34 billion or 13 percent in terms of market share. The takaful sector stands at USD1.7 billion. The Malaysian Islamic capital market has been equally encouraging. Islamic corporate bonds now amounting to USD36 billion, or 48 percent of the total corporate bond issuance in Malaysia. The domestic bond market plays a crucial role in ensuring that the financing needs of the economy are being fulfilled.
Foreigners investing in Malaysia are also free to hedge with onshore banks their committed flow of funds such as the repatriation of investment proceeds, dividends and profits from Malaysia as well as the purchase of ringgit assets in Malaysia. There is free mobility of inward and outward movement of funds relating to both foreign direct investment and portfolio capital investments. Multilateral development banks and multinational corporations may also issue ringgit or non-ringgit denominated instruments in the domestic bond market. To enhance the delivery system, an executive committee of key government officials, financial regulators and industry players has been has been set up for the implementation of the initiatives to support the operations in the Islamic financial system. Among others, an "executive green lane" has been accorded to expedite applications by expatriates for long-term employment passes with multiple entry visas. The Foreign Investment Committee rules will also be relaxed further to allow 100 percent foreign equity ownership in these financial institutions. Moreover, the Islamic financial system will also adopt a conducive stance on Shariah interpretations and practices, consistent with its international dimensions. It will mutually recognise and accommodate the various juristic reasoning that has been approved by recognised Shariah advisers. In conclusion, I wish the Malaysia Country showcase a success. I invite the business and financial communities from this region and the Malaysian delegation to capitalise on this event to arrange for business meetings on the sideline of this Summit. Thank you. 2  BIS Review 48/2007