Bismillahirrahmanirrahim.
In the name of Allah, the Most Gracious, the Most Merciful.

Assalamualaikum warahmatullahi wabarakatuh.

Ladies and Gentlemen,

In the five decades since its inception, Islamic finance has undergone much growth and change. Initially aimed at assisting Muslims to fulfil their religious obligations, the sector has evolved into a multi-billion-dollar industry. It is now fully part of mainstream financial

Few would have predicted such an evolution from its humble The industry now extends into areas such as digital banking; SRI Sukuk; Islamic FinTech; crowdfunding; ESG investing and sustainable finance. The sector has benefitted greatly from the sustained support of the Malaysian government and regulators, as well as the active participation of stakeholders.

Malaysia has long been recognised as a global leader in Islamic finance. Its progress has continued despite the challenging global financial and economic environment. We must provide the right conditions to ensure its continued growth. We must strive to develop a more comprehensive and resilient Islamic finance One that promotes financial stability and growth through the robustness of its legal and Shariah governance framework; through the dynamism of its interconnected markets; through the strength of its financial infrastructure; and through the responsiveness, sophistication, as well as accessibility of its products and services.

Looking ahead, a key feature of the sector will be its international dimension, as Islamic finance becomes an increasingly important part of the global financial landscape. An industry which remains locked down in the domestic market is unlikely to prosper. This is even more the case for financial products and services. Market expansion beyond Malaysian shores should continue to be prioritized as part of the development of policies and directions for the

The expansion of Islamic finance into different markets reflects broader patterns of global financial and economic These include the continued strengthening of financial and economic linkages between Asian and Middle Eastern countries. We also see the increasing reach of Islamic finance beyond both the traditional Muslim countries and the more established financial centres. For issuers, Islamic finance is increasingly viewed as an attractive alternative for raising capital, while investors are increasingly looking at it as a new asset class for their portfolios.

The post-pandemic period will also herald a new chapter in the development phase of Islamic finance. Current trends towards its internationalisation will only intensify. Increased collective efforts are thus also urgently required to ensure that Islamic finance is similarly subject to coherent and high-quality regulation. These regulatory structures must reach across all borders, with the universal application and enforcement of all the required This would contribute to the more successful international integration of Islamic finance.

This enhanced international dimension will be accompanied by a new set of challenges, of course, arising from the fundamentally different operating environment. This will be characterised by more competitive dynamics; by greater uncertainty; and by far greater

Global economic activity continues to shift eastwards. We have seen the continued growth and expansion of consumer markets in the region; the formation of extensive trade networks; and the creation of an increasingly business-friendly environment in the region. The Islamic finance sector can both participate in and promote further growth across ASEAN through its role in galvanising investment with a focus on social value-creation.

One of the most crucial elements of a vibrant and flourishing Islamic finance industry will always remain its Shariah As ever, the Islamic tradition will continue to serve as a driver for innovation, bid’ah hasanah, and creativity in the sector. Efforts must thus be made to ensure that the full potential and wisdom of the Shariah classical tradition is being harnessed.

This underlying ethical dimension of Islamic finance is what ensures the sustainability, as well as the social acceptability, of the entire enterprise. It is achieved through the establishment of strong institutional structures based on good governance and It is also achieved by ensuring that any financial innovation and regulatory improvements are rooted in the spirit of Islamic law, the Maqasid al-Shariah. Thus at their very core, these innovations and improvements all aim to serve the public good.

Importantly, it is the long-held Shariah principles of Islamic finance that enable it to facilitate financial inclusion without the risk of fuelling excesses or imbalances in the wider economy. This is because Shariah-compliant financial transactions must always be supported by an underlying economic activity. In this respect, the Shariah Committee of Islamic Financial Institutions becomes a key international It helps to ensure that the inherent strengths and principles of Islamic finance are fully realised.

Continued close cooperation among Shariah regulators, along with scholars and practitioners - in research and in the development of new products - will provide a strong foundation for a dynamic and future-ready Islamic financial system.

It is notable that the great ulama of the past demonstrated a practical approach in dealing with commercial contracts. This can be seen in their juristic writings as well as their fatwa collections. Multiple views and differing opinions are frequently recorded even on a single substantive matter of the law, showing a true breadth and flexibility of thought. The magnitude of the scope of this juristic scholarship must continue in our times. This will allow the flexibility required for us to govern our modern financial transactions effectively, whilst ensuring that we remain rooted in the Shariah tradition, and guided by the great minds of our jurists and ulama, past and present.

Ladies and Gentlemen,

I am pleased to see topics that bridge both modern and classical concerns have been selected for discussion at this year’s edition of the ‘Dialogue of Shariah Scholars’, or KLIFF Muzakarah. They include interesting questions on the Islamic capital market; fintech in Islamic finance; as well as the latest Shariah rulings on the global stage, with a useful comparison to their conventional legal counterparts.

I trust that KLIFF 2022 will be a catalyst for stimulating new ideas and directions, and for helping to establish Islamic finance firmly in the new post-pandemic landscape. While we may not be able to avoid unexpected crises like the pandemic, we are in a position - InsyaAllah - to address effectively the issues and challenges that emerge from them. In this era of mounting global crises, I strongly believe that events like this international forum can help to provide the direction we need to navigate towards a brighter future.

With that, I wholeheartedly wish everyone a meaningful, enlightening, and impactful event.

In the name of Allah, the Most Gracious, the Most Merciful, Bismillahirrahmanirrahim, I declare the Kuala Lumpur Islamic Finance Forum 2022 officially open.