1. © 2012 INCEIF Keynote Speech “The potential role for Malaysian Islamic Financial Institutions in the changing landscape of banking trends leading to the expansion of Islamic Finance in the United States” 4 November 2013 Daud Vicary Abdullah, President & Chief Executive Officer The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF.

2. © 2012 INCEIF 1.Islamic Finance - Where we are : Global Development & Progress of Islamic Finance 2.The Malaysian experience 3.The way forward 2 Agenda

3. © 2012 INCEIF Islamic Finance Global Development & Progress of Islamic Finance 3 1

4. © INCEIF 2012. 4 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. INCEIF 2013. Global overview of Islamic Finance 1

5. © INCEIF 2012. 5 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. INCEIF 2013. The global economic crisis Islamic finance as an alternative IF reaches the mainstream (The fastest growing Industry) Significant oil money from middle east Market driven (Muslim underserved and want to be served) IF proven more resilient during crisis Encourage Ethical values & CSR (Maqasid Al Shariah) Islamic financial sector is in a unique position to promote financial innovation and bring stability to global finance, as long as it is correctly nurtured and developed internationally. 1

6. © 2012 INCEIF 6 2 Sharing best practices: The Malaysian Experience Comprehensive financial landscape Changing of mindset

7. © INCEIF 2012. FINANCIAL MARKET Money Market  Islamic interbank money market - Daily average transaction RM1 bilion  Bursa Suq Al Sila’ Capital Market  57% of outstanding private debt are sukuk  88% permissible counters at Bursa Malaysia  144 Islamic funds 7 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. INCEIF 2013. Malaysia’s comprehensive Islamic financial landscape GOVERNANCE Legal & Regulatory Central Bank Act 2009 Islamic Bank Act 1983 Takaful Act 1984 Government Funding Act 1983 Capital Market Services Act 2007 Malaysia Deposit Insurance Corporation Act 2005 Risk Management Shariah Advisory Council Bank Negara Malaysia Securities Commission Dispute Resolution Judicial system – dedicated High Court KL Regional Centre for Arbitration Financial Mediation Bureau DIVERSIFIED PLAYERS Islamic Banking  16 Islamic banks  6 DFIs offering Islamic banking services  5 International Islamic banks [15 International currency business units (ICBU)] Takaful  12 takaful operators  4 retakaful operators  1 International takaful operator [9 ICBU] Fund Management  12 Islamic fund management companies  35 fund management companies with Islamic mandates Islamic Banks & Takaful Companies Islamic Capital Market Islamic Money Market Money market Conventional Banks & Insurance Companies Capital market Malaysian Financial System Dual banking system Supported by human capital infrastructure 2

8. © INCEIF 2012. 8 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. Correcting misconception & demystifying Islamic Finance Ensuring value propositionHand by hand to grab business opportunitiesProviding supporting legislation & regulation INCEIF 2013. Demystifying Islamic finance Changing the mindset of the masses 2

9. © 2012 INCEIF 9 3 The Way Forward: Building human capital

10. © INCEIF 2012. 10 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. INCEIF 2013. Talent Development Bringing our talent up to speed Education LiquidityPerception  Enhance Shariah expertise and Human Capital  Increase knowledge in Islamic Finance Encourage right and comprehensive understanding Provide sufficient cross-border Liquidity 3

11. © INCEIF 2012. 11 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. Build quality education Accreditation & Professional standards Interoperability International standards INCEIF 2013. World class workforce What is needed 3

12. © INCEIF 2012. 12 The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF. INCEIF 2013. 3

13. © 2012 INCEIF There is much to do & Not a moment to lose 13

14. © 2012 INCEIF 14 Thank You Daud Vicary Abdullah Tel: Email: Website: +603 7651 4141 www.inceif.org dvicary@inceif.org President & Chief Executive Officer INCEIF 2013.