I am pleased to note the vital role played by the EXIM Bank in providing the financing facilities for the construction sector to undertake projects abroad. In today’s Seminar, we have the opportunity to hear from the EXIM Bank on the various available financing facilities to contractors with overseas projects. Similarly, we will also be enlightened on the role of the ICD in promoting economic development among OIC member countries, particularly on private sector project, by providing financial as well as advisory services for a range of client requirements. Malaysia’s Islamic financial industry, as we are all aware, distinguishes itself a proven platform for conducting Islamic finance activities. The vibrancy and dynamism of Malaysia’s Islamic financial system is reflected by its continuous product innovation, the diversity and strength of its domestic and international financial institutions, the wide range of available financial instruments, a comprehensive Islamic financial infrastructure and the adoption of global regulatory, legal and Shariah best practices. Leveraging on the strengths of the ever growing domestic Islamic financial sector, Malaysia has launched the Malaysia International Islamic Financial Centre (MIFC) initiative in August 2006 to offer its value proposition in Islamic finance to the world at large to leverage on its inherent strengths, advantages and experience to tap the trillion-dollar opportunity that awaits financial institution worldwide. The Islamic financial system in Malaysia has evolved as a competitive component of the overall financial system, with both acting as drivers of economic growth and development.
Bank Negara Malaysia has and will continue to play an active role in promoting the offering of Islamic financial products and services, including sukuks or Islamic bonds. For issuers that include government agencies, multinational corporations and development institutions, sukuks play a multi-faceted role in meeting different funding requirements ranging from large infrastructure and developmental projects to capital and business expansion. As part of Malaysia’s goal in promoting the issuance of sukuks, various attractive initiatives are offered. These include tax exemption, facilitative approval processes and liberal foreign exchange rules. In Malaysia, sukuks accounted for nearly 60% of outstanding corporate bonds in 2009. As at end of June 2009, Malaysia’s outstanding sukuks, both private and public, accounted for about 62% of outstanding sukuks globally. Total global sukuk issued during the 12 months period until September 2009 is about USD41 billion, of which Malaysia’s share accounted for almost USD30 billion or nearly 74%. We in Bank Negara Malaysia are confident that in 2010, sukuk financing will continue to play an increasingly important role in financing across the Malaysian economy including cross-border financing of overseas projects by Malaysian companies. I am very confident that this Seminar and the opportunities for business networking will be a fruitful one. On this note, and with the lafaz Allahuakbar, it is my pleasure and honour to declare open the Seminar on Financing for Overseas Project. 2  BIS Review 7/2010