IslamicFinance.de

RHB Islamic Bank is expecting to disburse at least RM50 million this year to facilitate the development of entrepreneurs. The fund is part of the Teras Fund programme provided via the Bumiputera Agenda Steering Unit (Teraju). According to RHB Islamic Bank's CEO Datuk Adissadikin Ali, the collaboration with Teraju had so far disbursed RM200 million as of 2016 from the total fund raised of RM400 million. He said the original fund for the programme was RM80 million, but RHB Islamic managed to raise the fund by leveraging on resources to RM400 million.

Maybank Islamic Bhd has so far secured major mandates valued at RM9 billion. More clients are expected to come on board by end of this year, which will bring the assets under custody to RM13 billion, its Deputy Chief Executive Officer and Head of Product Management Nor Shahrizan Sulaiman said. He said assets under management of Malaysia's institutional investors, government-linked companies and sovereign wealth funds were valued at about RM1.4 trillion. Nor Shahrizan said Maybank Islamic's custody services also provided Islamic performance measurement and attributes, and compliance monitoring for both domestic and global funds' portfolios.

OCBC Al-Amin Bank Bhd has opened its first Islamic Premier Banking Centre at the newly opened branch, the 11th, at Kota Kemuning in Shah Alam. The move will cater to high net worth individuals seeking sophisticated Islamic banking products and services. With the opening of the first Islamic Premier Banking centre here in Kota Kemuning, the bank hopes to raise the bar in Islamic banking products and services for the high net worth segment. The bank's inaugural Premier Banking Centre includes a private customer discussion area, parking, safe deposit boxes and full-time premier banking tellers. Previously, the only available premier banking centres for Islamic banking were those shared with conventional banking entities.

Shariah- based funding is available now to support viable green technology projects, says Bank Islam Malaysia Bhd Managing Director Datuk Seri Zukri Samat. He said the bank would use every opportunity to promote Shariah-based financial products and services for project financing transactions, in line with the government's aim of establishing Malaysia as a leader in Islamic finance. Zukri said Bank Islam had completed the project financing transaction exercise for Kerian Energy via the syndicated Islamic financing facilities of RM121.44 million under the Shariah principle of Tawarruq. He also said the bank was looking towards re-balancing its consumer banking and corporate banking portfolio at a ratio of 70:30 by year-end.

The sustained effort to enhance the regulatory and legislative framework to support Islamic financial transactions will continue to place Malaysia as the biggest player in the global Islamic banking industry, says CIMB Islamic Bank Bhd. Chief Executive Officer Badlisyah Abdul Ghani said despite the growing competition from other markets, such as Indonesia and Saudi Arabia, Malaysia's better and firm framework would be a value added. Nevertheless, Badlisyah said due to the aggresive external environment, Malaysia should always come out with compelling, commercially driven products, to clearly distinguish itself from competitors. Badlisyah was a speaker at a panel discussion on "The Future of Islamic Banking: Where Do We Go From Here?"

Despite the common opinion that joining a cooperative means that an individual can get loans, cooperatives are actually an important part of economic activities such as banking and construction as well as of the industrial and service sectors. Due to the sector's contribution to the nation's Gross Domestic Product (GDP), cooperatives are recognized by the government. Koperasi Permodalan Felda Malaysia Berhad (KPF) is introduced as a cooperative establishment to ensure sufficient funds for its workers.

It is expected that in the next 10 to 15 years Islamic Finance will offer significant opportunities for growth and diversification. Tharman Shanmugaratnam - Singapore's Deputy Prime Minister and Minister for Finance - expressed his optimistic attitude towards the prospects of Islamic finance. He pointed out that Islamic financial institutions have largly escaped significant damage in the global financial crisis as one of the main reasons for his attitude. In addition, he explained that this financial area has the opportunity to diversify into new growth areas such as trade and infrastructure financing in Asia and the emerging markets.

Danajamin Nasional Bhd has assured guarantees for sukuk and bond programmes worth RM5.54 billion. This includes the latest guarantee for the Islamic facilities of Bolton Bhd. Bolton's seven year RM230 million Islamic Medium Term Notes (IMTN) programme is guaranteed by Danajamin. RM150 million of sukuk have already been issued in three tranches and fully subscribed.

It is expected by early next year that the Islamic corporate social responsibility (i-CSR) General Practice framework will be ready for adoption by Islamic financial institutions. The framework has been developed by the Accounting Research Institute (ARI) of Universiti Teknologi Mara. It is now almost completed. ARI researchers at the UITM-ACCA Asia-Pacific Centre of Sustainability (APCeS) worked in collaboration with Universiti Sains Malaysia, and Indonesia's Sebelas Maret University and Universitas Muhammadiyah Surakarta. According to Professor Dr. Normah Omar - director of ARI - Shariah players including local Ulama (Islamic scholars) will be engaged by the institute in order to firm up a couple of details on the framework in a two-day workshop beginning on November 29th.

According to the Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail Sunday, private corporations should seize the opportunity to be creative in performing their Corporate Social Responsibility (CSR), thus enhancing the future of their companies as well as their current reputation. At the CSR charity sale, which was organized by Malaysia Industrial Development Finance Berhad (MIDF), he said that he was certain of the growth of popularity of the company through this event. The charity sale was made possible in collaboration with the Perlis Islamic Religious Affairs and Malay Customs Council.

An Islamic Corporate Social Responsibility (i-CSR) General Practice Framework for Islamic institutions is being developed by researchers at the Accounting Research Institute (ARI) of Universiti Teknologi Mara (UiTM). The framework aims to provide suitable guidance for Islamic institutions in comparison with mainstream CSR which is based on Western practices. The development of the i-CSR framework is part of and the ultimate goal of a research project under the Islamic finance and muamalat domain.

According to an announcement by the Kuala Lumpur Islamic Financial Forum (KLIFF), Al Rajhi Bank is awarded The Most Outstanding Islamic Finance Product for its Al Rajhi Collateralised Commodity Murabahah-i (CCM-i). The Islamic Finance Awards 2012 ceremony took place in conjunction with the 9th Kuala Lumpur Islamic Finance Forum (KLIFF 2012).

Read more on: http://www.bernama.com/bernama/v6/newsindex.php?id=705234

The RM240 million Sukuk Musyarakah medium-term notes programme of Alloy Properties Sdn Bhd received affirmation on its rating of 'AAIS' with a stable outlook by Malaysia Rating Corp Bhd (MARC). The rating is a reflection of the adequacy of cash flows for the sukuk coming from the three identified payment sources. These include rental income from the company's two buildings.

Read more on: http://www.bernama.com.my/bernama/v6/newsbusiness.php?id=703913

A joint venture between Takaful Ikhlas Sdn Bhd and Islamic Aid Malaysia (IAM) provided the Darul Falah Ummi Aishah Orphanage in Kampung Behor Masjid with a library of 1,000 books in Bahasa Melayu and English. The donation worth RM33,000 by Takaful Ikhlas Sdn Bhd was part of its Orphanage Library programme and was aiming to finance the library and to purchase books and computers and book racks. Thus, the company is fulfilling its corporate social responsibility (CSR).

Read more on: http://www.bernama.com/bernama/v6/newsindex.php?id=703229

It is expected that Islamic finance will thrive at a faster rate in emerging economies. The main reasons therefore, pointed out by KFH Research Ltd., are their resilient economic dynamics and potential, and their awareness of the industry. The liquidity in the emerging markets for Islamic finance is growing continuously and fast. This results in an increase in the demand for Islamic finance products. The outlook for the industry is growth as high as 20% a year.

Malaysian government plans to introduce tax exemption for companies with Tun Razak Exchange (or TRX) status. It is considered to be an important move in government's efforts to position Malaysia as a central investment destination for foreign investors. According to analysts, the development of TRX financial hub should attract about 250 international financial services companies and offer 40.000 new job opportunities.

See more under: http://www.bernama.com.my/bernama/v6/newsbusiness.php?id=698332

Today Bank Islam Malaysia Bhd presented to the Sabah Tithe Centre business tithe of RM120,979 for distribution to deserving recipients. Last year the bank also registered a pre-tax and pre-tithe profit amounting to RM470.1 million.

SWIFT said the certification would pave the way towards the automated processing of Murabaha treasury transactions, which reportedly represented 60 per cent of all Islamic financing.

Over 240 Islamic banks representing 84 per cent of global syariah-compliant assets are members of SWIFT.

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Contact:
Asim Butt, asim.butt@swift.com