GLOBAL ECONOMIC STABLITY A PRE-CONDITION FOR GROWTH

KUALA LUMPUR, Jan 20 (Bernama) - The restoration of global economic
stability arising from the current financial crisis is crucial, as it is the key
pre-condition for growth and poverty eradication, Central Bank of Malaysia
Governor, Dr Zeti Akhtar Aziz said Tuesday.

Hence, the international financial community is working on a solution that
would stabilise the industry in the short term and prevent a re-occurrence of
such a crisis in the future, she said.

"The crisis has not only impacted the major economies where it originated
from but also emerging and developing economies.

"Various groups in the international community are making an assessment of
the economic arrangements that might need to be reformed.

"Also being looked at is how and what kind of institutional arrangements or
instruments need to be put in place, given the major changes that have occurred
in the global economy," she added.

In this regard, the Islamic Development Bank (IDB) had in October last year
organised a forum on the global financial crisis and the impact on the Islamic
financial services industry, she said in her opening remarks at the first
meeting of the Task Force for Global Outreach of Islamic Finance.

The task force was established during last year's forum.

"The task force, which comprises a group of experts with diversified
backgrounds,are to examine the impact of the current global financial crisis on
Islamic finance and the potential for it as a form of financial intermediation
which can contribute to global financial stability," said Zeti who heads the
task force.

Also present was IDB group president, Dr Ahmad Mohamed Ali.

Among other things, Zeti said the task force would prepare working papers to
assist with efforts to address the impact of the financial crisis.

"It will also explore and identify the circumstances and implications to
reduce the prospects of such a crisis in future," she explained.

However, she said that structural issues might take longer to undertake.

A statement released in conjunction with the meeting stated that, the task
force in its first meeting, shall establish three thematic teams to work on
areas such as contribution of Islamic Finance to world financial architecture,
explore opportunities raised by the crisis including resources mobilisation and
management, the future of the Islamic Financial Services Board and the role of
inclusive finance.

-- BERNAMA