IBFIM to give Islamic banking help in China

IBFIM to give Islamic banking help in China

The Islamic Banking and Finance Institute Malaysia (IBFIM) will help Shenyang Province Authority form an Islamic financial community on a 120ha site in the Chinese region.

It planned to submit a proposal for the project in the third quarter this year, IBFIM managing director Datuk Dr Adnan Alias said after the signing of a memorandum of collaboration between IBFIM, Kuala Lumpur Chinese Assembly Hall and Shenyang Province Authority yesterday.

“If the proposal is accepted, we will decide whether to issue sukuk for the development of the area,” he said.

Under the partnership, IBFIM via Kuala Lumpur Chinese Assembly Hall will provide Shenyang Province Authority with syariah advisory and consultancy services as well as training in Islamic banking and finance.

Deputy Finance Minister II Datuk Ng Yen Yen, who witnessed the signing, said Islamic banking was growing rapidly with the rate averaging 15% to 20% a year.

“Islamic banking offers a range of products and services, such as insurance, asset management and loans, to all and is not confined to Muslims,” she said.

As of September last year, Islamic assets totalled RM147bil or 12.3% of total banking assets in Malaysia, while the global figure was US$1 trillion.

“With our expertise in Islamic banking, we hope to share our knowledge with other countries as well as engage global participation, principally in China where the market is huge,” Ng said, adding that Malaysia had eight full-fledged Islamic banks.

As of Dec 31 last year, Islamic bonds accounted for 55% of the total approved in Malaysia with an outstanding corporate sukuk market of RM150bil.

Adnan said that in promoting Malaysia as the global hub for Islamic banking, IBFIM would create awareness of Islamic products and services through seminars, consultation and media briefings in the region.

The director of the administrative committee of Shenyang Finance and Trade Development Zone Investment Promotion Bureau, Yin Hongwu, said: “The Chinese Government has an open-market policy to encourage foreign banks to set up branches in the country.”

The minimum capital investment by a parent company to set up branch there was US$20bil, he said.