The Riksbank is also involved when the candidate countries present their "Pre-accession Economic Programmes" (PEP) for the EU countries. These PEP programmes are exercises where the countries attempt to analyse and present their economic challenges in the way they will in future, as  BIS Review 9/2002  5  EU members, present stability and convergence programmes and consult on economic policy within the framework of the Broad Economic Policy Guidelines. Hopefully, the Riksbank will be able to contribute with analysis of economic activity and structural issues in these countries, not merely for our own forecasts but also in relation to the EU and ECB. What we can learn from the candidate countries Before I finish, I would like to go from speaking of what the candidate countries can learn from us to pointing out what we can learn from them. Several of the former planned economies are now in some areas better adapted to the EMU than today's EU countries. Several of them have, for instance, a flexible labour market and wage formation. This appears to have contributed to enabling the Baltic states to cope with the Russia crisis and the breakdown of the Russian market, without their reform efforts and growth coming to a standstill. This flexibility also makes them extremely well suited in this respect for a monetary union like the EMU. The preparedness to implement structural reforms also appears greater.
The Fund would support the proliferation on the buy side for the issuance of sukuk out of Malaysia, besides providing a platform for the Islamic fund management industry, including start-ups to build their track record in managing foreign currencies fund denominated. Complementary to this initiative is the creation of a Malaysian-based sukuk index for foreign currency and also an extension of our domestic settlement capabilities to include foreign currency securities. This is the moment when we need the cooperation from the private sector in support of government’s measures to generate business and to stimulate the economic growth. There are enormous opportunities for the industry to benefit from these initiatives. The strengthening and the transformation of the financial sector contributed by financial deregulation, opening of markets and integration have created a more competitive environment. In aligning to the rapidly changing and increasingly challenging global environment with significant growth in world trade and enhanced international linkages with global economies, the foreign exchange administration (FEA) rules have been progressively liberalized to promote flexibility and competitiveness of the economy while safeguarding monetary and financial stability. The philosophy on the liberalisation of the foreign exchange administration rules takes into account the readiness of the economy which includes sound macroeconomic fundamentals and prudent fiscal policy, a well diversified financial market with sound and stable financial system that is able to withstand external shocks, liquid and efficient capital market and healthy balance of payments position that is supported by an effective and well functioning surveillance mechanism.