Nazir: We have to do more to market Islamic banking products

By B.K. SIDHU

KUALA LUMPUR: Malaysia must do more to market Islamic finance products and services to attract funds inflows despite the fact that the country is a magnet for Islamic banking and finance. 

“The funds will come when there are good reasons to. We need to make it attractive for them,” Bumiputra-Commerce Holdings Bhd group chief executive Datuk Nazir Razak said on the sidelines of the official opening of the Global Islamic Finance Forum (GIFF) yesterday.  

“Now that the foreigners are here (for GIFF), we should demonstrate the opportunities that are available. (We believe) we are going to do a good job and hopefully we will see more inflows of funds,” he added. 

Nazir said the move by Bank Negara to allow foreign Islamic banks to set up operations in the country was good as “the momentum of interest increases significantly in the Middle East.” 

Kuwait Finance House (M) Bhd, Al Rajhi Bank and Asian Finance Bank are three foreign Islamic banks that have set up operations in Malaysia. Many other foreign banks have shown interest to be part of Malaysia’s Islamic and banking sector. 

HSBC Amanah Malaysia managing director Mohamed Ross Mohd Din said Malaysia was the “ideal bridge” from Asia to the Middle East and vice versa,. 

Given the country’s higher ground in the Islamic banking and finance sector, “why shouldn’t the funds come?” 

“The funds will come. Even though it is trickling in now, it should come in bigger numbers later,” he said. 

From left CIMB Bhd chief executive officer Datuk Nazir Razak, Symphony House group chief executive Datuk Azman Yahya, and Habib Kazim the senior manager in charge of administrative BSED in Dubai and Northern Emirates for the Central Bank of the UAE.

Head of Bank of Nova Scotia Rasool Khan said the liberalisation of the foreign exchange administration rules and tax breaks were very favourable and would inevitably attract Middle Eastern funds, citing the Iskandar Development Region as an example. 

There is no denying that Malaysia will continue to attract Middle Eastern funds so long as enough structured products can be made available. Ali Omer Ibrahim Farah, president of Faisal Islamic Bank in Sudan, said Malaysia had all the ingredients – from economic to political stability and a fast growing Islamic banking sector with sufficient infrastructure and legislation, to products – to attract foreign money.  

Yesterday’s forum attracted not only a large number of global Islamic bankers, regulators, investors to fund mangers but also those who were eager to learn and emulate Malaysia’s success in Islamic finance, and those who just wanted to network. 

Abdul Rahim Ghouse, general manager of the Muslim Community Co-operative (Australia) Ltd, said he was attending the forum to network and help strengthen Islamic banking and finance in Australia.