“We are very pelased with this successful achievement within such a short timeframe. We have also registered a strong momentum in credit cards growth, and expect to grow further. This is testament that despite that it is new to the market, more customers prefer the MPower Credit Card-i as its features and benefits match their lifestyle and financial requirements,”

HSBC Amanah executive director and chief executive officer Musa Abdul Malek said in the statement.

MPower Credit Card-i is one of the first Islamic credit cards in Malaysia that uses the globally accepted Syariah concept of Ujrah (fee contract).

Source: Bernama

Maveric Systems

After exploring various markets in the Asia Pacific region, Maveric selected Malaysia, as its next overseas market for expansion.

When it begins operations by next month, Maveric will focus on banking, insurance and the government sector.

“We will be looking at software testing in insurance, Islamic finance, Takaful and commercial banking. Our audience will be the middle-level executives in these institutions. Malaysia has shown lot of commitment towards improving quality and services.Institutions are also realising the need for efficiency,” P. Venkatesh, a director of Maveric, told Bernama.

The company had set a modest revenue target of US million (RM7 million) from its Malaysian operations within the first two years.

In parallel to its investments in software testing, Maveric has tied up with the Malaysia University of Science and Technology (MUST) to hone local talent as part of its long-term human resource development plan for the software industry.

“We plan to set up a training infrastructure with MUST, a cursory level training, and later tune it into a two-year course. We need to hone skills for the technology-led financial sector because this will determine the institutions customer base or cause it to lose out to competitors,” he said.

Equipped with expertise in Islamic banking from its Middle East operation, Maveric, one of India’s three top software testing company, is keen to explore similar areas in Malaysia as well.

“With our expertise in Islamic banking in the Middle East, it will help us tap into this sector in Malaysia which is growing at a staggering rate of 35 percent year-to-year.

“With success in the Saudi Arabian market within six months of operations, we hope the Malaysian expansion would also help us to meet the growth target of 30 per cent for the financial year,” added Venkatesh.

Source: Bernama

Bank Islam Malaysia Bhd

Its general manager of Treasurer Division, Norashikin Kassim, said the bank was constantly innovating products to tap the US trillion global Islamic finance market.

“There is a lot of demand for Islamic products both locally and overseas, and we are constantly innovating to produce solutions to meet our customers’ needs. We will look at launching both on the consumer and corporate side and will make the announcement in due course,”

she told reporters at the sidelines of the Malaysian Corporate Conference 2009, organised by the Association of Islamic Banking Institutions Malaysia, here on Thursday.

Norashikin

Norashikin said with Islamic financing projected to grow even more rapidly in the next five to 10 years, Bank Islam was in the position to tap the market as the bank already offered a complete range of Islamic products both for its individual customers and corporate clients.

She said more customers were also beginning to understand that the Syariah based Islamic banking was not just about religion based banking, but premised on ethical values.

Norashikin said Bank Islam was also the first bank in the world to minimise risk exposure to fixed rate payments, by swapping some of them with a conventional bank for floating rate payments.

“For profit rate or interest rate for conventional, we offer Islamic profit rate to hedge against interest rate from increasing. Customers can enter Islamic profit risk with Bank Islam to convert it from floating rate to a fixed rate,” she said.

Bank Islam also offers products that hedge against a floating rate in the foreign currency.

“A ringgit-based company that has taken financing in US dollar can enter into Islamic cross currency profit risk swap to convert the US dollar floating rate to a fixed ringgit rate which is Syariah compliant,” she explained.

Among the financing deals offered by Bank Islam are Wiqa’ Forward Rate Agreement (WFRA), Wiqa’ Profit Rate Swaps (WPRS), Islamic Cross Currencies Swap (ICCS) and Commodity Murabahah.

Source: Bernama

In a statement Friday, IBFIM said it hoped the financial planning and wealth management community will benefit from the conference and be conversant with Islamic or syariah-compliant financial planning and explore the opportunities.

The conference is also part of the long term objective to develop Malaysia as an international Islamic financial planning and wealth management hub.

Among the significant accomplishments made in that direction is the introduction of the Islamic Financial Planner qualification that is recognised both by Bank Negara Malaysia and the Securities Commission, it said.

The conference expects to bring together financial planning and wealth management professionals, investment product providers, consultants and service providers, including those in the Islamic banking, takaful, investment and asset management industry.

Source: Bernama

The Islamic Financial Services Board (IFSB), Islamic Development Bank (IDB) and Islamic Research and Training Institute will jointly hold a conference on “Emerging Financial Stability Framework” in London on July 1.

The one-day conference aims to highlight and discuss various regulatory and supervisory issues arising from emerging initiatives undertaken in establishing a framework for the financial stability of the Islamic financial services industry, IFSB said.

Hosted by the United Kingdom Trade and Investment, the event will attempt to facilitate a thorough analysis of factors and preconditions that should support the resilience of the Islamic financial services industry, it said in a statement today.

The conference will bring together over 15 well-known chairpersons and speakers, including United Kingdom Trade and Investment Minister Lord Mervyn Davis, IDB president Dr Ahmad Mohamed Ali Al-Madani, and IFSB chairman Dr Muhammad Sulaiman Al-Jasser, who is also governor of the Saudi Arabian Monetary Agency.

The speakers will share their views in four sessions comprising structure of Islamic financial services industry and financial stability, emerging prudential framework, legal infrastructure and safety nets, and liquidity infrastructure.

Participation in the conference is by invitation and participants are expected to comprise financial regulators and supervisors, industry experts and academicians, IFSB said.

Source: Bernama

The continued growing international interest in the 5th Annual World Islamic Funds and Capital Markets Conference (WIFCMC 2009), the world’s largest gathering of Islamic investment leaders, is more evident this year as more international jurisdictions become involved. 

The French Pavilion will feature a delegation led by Paris EUROPLACE, while the Malaysia Pavilion will be led by the Malaysia International Islamic Financial Centre, as both centres come in full force to showcase the latest developments and innovations in their Islamic finance markets.

The Malaysia International Islamic Financial Centre (MIFC) initiative is undertaken by the collective efforts of Malaysia’s financial and market regulators, together with industry participants from the Islamic banking, takaful and capital market community in Malaysia. HE Dato’ Syed Sultan Idris Ambassador Embassy of Malaysia (Bahrain) will accompany the Malaysian delegation. 

Paris EUROPLACE, which was created in 1993 to develop and further modernize the Paris financial market and promote its key advantages at the regional, European and international level today gathers 150 member institutions, brings together a multiplicity of players in the financial industry: corporate issuers, financial intermediaries, asset management companies, law and accounting firms and consultancies-all of which participate to the association’s actions and activities

With the general expectations that Shari’ah-compliant investments are better positioned to withstand the strains of the global financial meltdown, WIFMC 2009 key note address will set the stage for discussions on promoting stability and strengthening the Islamic investments industry. Abdul Rahman Mohammed Al-Baker Executive Director of Financial Institutions Supervision Central Bank of Bahrain and Dr. Mohamed Nedal Alchaar Secretary General AAOIFI – The Accounting and Auditing Organization for Islamic Financial Institutions will deliver the keynote speech.

WIFCMC 2009 has attracted the support of the leading players in the global Islamic investments industry. Platinum sponsors include HSBC Amanah, Bahrain Islamic Bank, and Reef Real Estate Finance. Other leading institutions partnering with WIFCMC 2009 include Bahrain Financial Exchange, Tharawat Investment House, LM Investment Management, Deutsche Bank, ITS, BNP Paribas, ELAF Bank, DLA Piper, BLME, Capinnova, DCAP Limited, NCB Capital, Ernst & Young, Dowjones, Khandwala Securities Limited, BMB Islamic, Bahrain Association of Banks, Riyada Consulting, MA  Foi, Path Solutions, Ohad Trust, SKOPOS Consulting, Gulf Custody Company, Standard & Poor’s and Al Sanabel.

More than 400 industry leaders will gather in Bahrain on the 25th & 26th of May for the 5th Annual World Islamic Funds & Capital Markets Conference 2009, the world’s most important platform for discussions that will shape the future of the Islamic investments industry.

Al Rajhi Bank KSA, the largest Islamic bank in the world has recently been awarded its second banking license in Malaysia. The new license, an International Islamic Banking license issued under the Malaysia International Islamic Financial Centre (MIFC) was granted to Al Rajhi Bank KSA to operate as a branch office (ARIIB).

ARIIB’s Principal Officer & Director of Investment Banking, Leong See Meng said the platform will serve as the banking group’s regional Islamic Investment Banking base to support the growing demand for Islamic Investment Banking services in the region and to complement the strong franchise built by Al Rajhi Bank Malaysia. Al Rajhi Bank started its operations in Malaysia in October 2006 and has 19 branches spread through out the country.

Over the past two years, Al Rajhi Bank KSA has achieved a leading position in the areas of Project and Structured Finance, Advisory, Islamic Debt Arranging and Corporate Finance as well as Asset Management and Brokerage. It is primarily in the fields of Project and Structured Finance in which Al Rajhi has excelled, bringing innovation and Shariah structuring skills to project Sponsors in the Middle East.

CEO of Al Rajhi Bank Malaysia, Ahmed Rehman said, “The MIFC provides an excellent platform to enable us to provide Islamic Investment Banking services to cater to the growing sophistication demanded by top tier players in the region. ARIIB is looking at introducing Islamic Structures and advisory services based on global best practices that appeal to Malaysian, regional and Middle Eastern customers and investors in recognition of Malaysia as a true international Islamic banking hub”.

ARIIB’s focus will be on leveraging on the parent’s capabilities in Leverage Finance, Mergers and Acquisition advisory, Islamic Sukuk, Corporate Finance advisory, Private Equity, Sales & Distribution, Equity Capital Markets and Structured Finance.

The time is ripe for the Group to broaden its proliferation into the region amid the slower global economic growth as ARIIB intends to nurture and promote Islamic Investment Banking as a viable alternative to conventional finance as governments and corporate in the region embark on their initiatives to move ahead of the challenging times.

“We have the technical capability and more importantly, the human capital and the Islamic Finance intellect to make this a reality through the MIFC platform”, Leong said.

Senior executives and strategists from the banking sector in Malaysia attending the ongoing Malaysia Services Exhibition (MSE 2009) in Dubai have said they are eager to co-operate with governments and financial institutions in and around the Middle East in tapping the rapidly increasing opportunities in Islamic finance.

Addressing a forum on ‘Malaysia – opportunities in Islamic finance’ at the three-day services showcase, which opened at the Dubai Airport Expo on March 17, Mohammed Ibrahim, Assistant Governor of Bank Negara Malaysia – the Central Bank of Malaysia – said Malaysia has been able to develop a model Islamic banking system in terms of solid fundamentals and a level playing field for domestic and global players.

‘Malaysia has adopted a comprehensive approach in developing Islamic finance into a viable alternative in terms of product diversity and innovation, regulatory framework and human capital. We are ready to share our experiences and expertise with new as well as existing players as such co-operation will only accelerate growth of this sector,’ Mr Ibrahim told the forum.

MSE 2009 is being attended by 15 leading institutions that pioneered Islamic finance in Malaysia and lead the country’s evolution into the premier platform for Islamic finance activities and the first in the world to have a full-fledged Islamic financial system operating in parallel to the conventional banking system. To date, there are over 11 Islamic banks and 13 other banks participating in Islamic banking schemes in Malaysia with total of 1,281 branches operating throughout the country.

Leveraging on the strengths of its domestic sector, Malaysia has also launched the Malaysia International Islamic Financial Centre (MIFC) initiative to offer its value propositions in Islamic finance to the world. Malaysia’s central location as the gateway to ASEAN markets – a huge market of over 570 million people – is also a major attraction for investment companies exploring lucrative cross-border opportunities.

Mr Ibrahim said developing the human capital required to promote growth of Islamic finance locally and globally has been a top priority for Malaysia. ‘Malaysia has an International Islamic University and we ensure that qualified manpower is employed in our Islamic financial services sector. For example, a few years ago we had hardly 20 Shari’a scholars but the Central Bank stipulated that no two banks can have the same scholar on their board. As a result the number of Shari’a scholars in Malaysia has now crossed 200.’

MSE 2009 is organised by Malaysia External Trade Development Corporation (MATRADE), the national trade promotion organisation of Malaysia, which has 39 offices around the world including in Dubai and Jeddah. The exhibition will showcase over 200 service providers from 13 industry clusters where its broad range of services can meet the growing needs of the markets in the Middle East, North Africa and Commonwealth of Independent States (CIS).

‘There is still room for Islamic financial services and the prevailing global economic climate will promote growth and diversification of Islamic financial products. It would therefore be in the interest of everyone – especially major hubs of Islamic finance such as Malaysia and Dubai – to work together to make the best use of this opportunity,’ commented Mr. Noraslan Hadi Abdul Kadir, Trade Commissioner of Malaysia in Dubai.

MSE 2009 follows the success of the inaugural Malaysia Services Exhibition held at Sharjah Expo in 2008. Other industry clusters represented at MSE 2009 are: construction, engineering, healthcare and hospital-related services, ICT, oil & gas, education and specialised training, energy and power generation, logistics and transportation, professional services, franchising clusters, design and art.

Standard Chartered Saadiq, the Bank’s Islamic banking unit, has been named ‘Best International Islamic Bank’ for 2009 by Euromoney. A number of significant deals the Bank closed throughout 2008 including the first Sovereign Deal for the Government of Pakistan and a Project Finance Deal for Al Ma’aden Phosphate Company, contributed to the win.

Standard Chartered’s Group CEO, Saadiq, Afaq Khan, commented:

“The Bank delivering shariah-compliant financial products and solutions seamlessly across our geographic footprint. To be voted ‘Best International Islamic Bank’ is testament to our Islamic banking team’s ability to combine Shariah expertise with strong business understanding to meet with our customers business needs. The trust and the partnership with our customers and product partners have provided us the ability to deliver on a number of industry firsts that now serve as a benchmark across the markets for future similar deals.”

Azrulnizam Abd Aziz.

Azrulnizam Abd Aziz, CEO, Standard Chartered Saadiq Berhad, said: “These multiple recognitions represent our growing success and continuous commitment in providing innovative banking solutions based on Islamic values. You can count on us to meet all your Islamic banking needs with our tailored advisory and financing solutions. We would like to thank our customers, regulators, shariah scholars for their guidance and to industry players. Saadiq in Malaysia will continue to be the right partner servicing our clients with innovative shariah compliance solutions and improving our customer experience.”

Standard Chartered Saadiq celebrated its first anniversary as a global Islamic banking brand last year offering solutions to Small and Medium Enterprises including Cash, Trade Finance and Forex, and product offerings to individuals including mortgages, personal and auto finance, as well as third party distribution of Islamic funds. In 2008 Saadiq was presented with14 additional awards for major achievements in the Islamic banking field including:

Six deal specific awards from Islamic Finance News Awards – Deals of the Year 2008

- Sukuk of the Year, for Tamweel Sukuk

- Sovereign Deal of the Year, for Government of Pakistan Domestic Sukuk

- Project Finance Deal of the Year, for Al Ma’aden Phosphate Company

- Brunei Deal of the Year, for Brunei Gas Carriers

- Kuwait Deal of the Year, for The Investment Dar Company

- Pakistan Deal of the Year, for Government of Pakistan Domestic Sukuk

This brings the total number of awards for Saadiq to 28 since 2007.