The International Centre for Leadership in Finance is now in its 3 rd year of operations and more recently the International Centre for Education in Islamic Finance was established to meet the increased demands of Islamic finance professionals, both in the domestic and international markets. The programmes carried out by the Institut Bank-bank Malaysia and Malaysian Insurance Institute has also been reviewed to meet the demands of the financial sector. Ladies and Gentlemen, While Malaysia has approached liberalisation in a gradual manner, our track record has shown that the process is accelerated when it brings benefits to the country. Financial liberalisation has on several occasions been brought forward. In particular, liberalisation has been focused on the new areas of growth that is, in the insurance sector, in Islamic finance and in investment banking. New licences in Islamic banking to foreign financial institutions and larger foreign equity participation in both Islamic banking subsidiaries and takaful operators, and in investment banking of up to 49% is aimed at achieving a more internationally integrated financial system. While liberalisation in the traditional sector will continue, its already highly liberalised status and its higher level of capacity relative to the economy does not introduce urgency to the liberalisation compared to the new growth areas. These traditional sectors may lead to overcrowding. The focus of a more rapid liberalisation is where significant market development are likely to take place. Emphasis would be towards attracting foreign players who are recognised as specialist in a specific segment.
But do not expect a zero risk environment - and do not demand it. Fear of failure is the antidote for instability. It will go a long way to underpin the long term health of the financial system. 5  Governor Lars Heikensten “The Riksbank’s Work on Financial Stability”: Speech at Göteborgs University, 25 November 2003. BIS Review 5/2004  9