MALAYSIA: FIND WAYS TO BOOST CROSS-BORDER TRANSACTIONS OF ISLAMIC FINANCE SERVICES – CENTRAL BANK GOVERNOR

KUALA LUMPUR, Malaysia � Scholars and researchers need to think through what it takes to internationalise Islamic finance and formulate ways to enhance cross-border transactions of its services, says Bank Negara Malaysia (BNM) Governor, Muhammad Ibrahim.(BNM is Malaysia’s cental bank)

He said there was a need to structure Islamic finance products to meet the sophisticated needs of the economy.

Most Islamic finance industries globally are still domestically-oriented and the majority of them still engage in consumer credit and simple form of banking products.

If Islamic finance were to expand we need to go beyond these domains, he said in his remarks at the International Shari’ah Research Academy for Islamic Finance Alumni Hi-Tea here today.

He said it was pivotal to have a broader worldview, as well as to think about issues surrounding the ummah, not just those directly within the realm of Shariah and Islamic finance today.

We now see many traditional sectors ripe for disruption, with incumbents blindsided by new technologies and business models, of which, Islamic finance will not be isolated from these rapid changes, said Muhammad.

He said scholars and researchers must know the importance to garner knowledge and conduct research, as they would necessitate learning other disciplines to become innovative and to develop practical and cost-effective solutions.

Muhammad said the Islamic finance community must be innovative and competitive to fulfil the needs of Islamic finance users and ensure products and services offered remained relevant which would entail understanding issues faced by society at large.

Some of the most critical issues confronting the economy and society all over the world include accessibility to affordable housing, quality of living standards and better avenues to good healthcare and education.

My hope is that applied research and the development Islamic finance become mutually-reinforcing, a ‘virtuous circle’, where extensive research translates itself into great solutions which can then be used to propel Islamic finance to a new level of excellence, he said.

Source: NAM NEWS NETWORK