Indonesia and the Philippines are currently finalising a memorandum of understanding (MoU) to assist Filipino exporters to comply with Indonesia’s Law of Halal Product Assurance, according to a statement issued by the Philippines’ Department of Trade and Industry (DTI) on the 9th of March 2021.  Why it matters?  The MoU, which is in its final stages, will facilitate trading of Halal-certified goods through a government-to-government (G2G) arrangement between Indonesia and the Philippines. The G2G agreement is part of DTI’s efforts to help the Phil...

Most of the Malaysia’s Sukuk issuances in 2020 were tied to the principles of Sustainable and Responsible Investments (SRIs), as stated by the Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz at the 16th Kuala Lumpur Islamic Finance Forum (KLIFF) held on the 9th of March 2021. Issuances were carried out across ventures like funding renewable energy infrastructures (solar and hydro), as well as assisting social purposes like micro financing and education.  Why it matters? Principles of SRIs being tied to a majority of issuance...

According to The World Bank Country Manager for Malaysia, Dr Firas Raad, the Islamic finance sector is ready to facilitate the achievement of the United Nations’ Sustainable Development Goals (UN SDGs) for 2030. Speaking at the 16th Kuala Lumpur Islamic Finance Forum (KLIFF) held virtually on the 9th of March 2021, Dr Raad stated that this is possible mainly due to the sector’s physical assets, its system of profit and loss sharing, its tangible transactions and its ability to mobilise resources. Why it matters? Islamic financing ...

On the 7th of March 2021, Bangladesh Export Import Company (Beximco) signed a deal with City Bank Capital Resources Limited (City Capital) for the issue of Islamic Shariah-compliant Sukuk Al Istisna bonds to the tune of BDT 30 billion. This issuance is subject to approval from the Bangladesh Securities and Exchange Commission. Beximco would be the issuer, while City Capital has been appointed arranger, adviser, and issue manager. Why it matters?  According to media reports, the purpose of this issuance is for the construction of solar projects for two of Beximco&rs...

Moody’s Investors Service (Moody’s) reports that United Arab Emirates-based Emaar Malls’ issuer and Sukuk ratings will remain unchanged by the proposed merger (via a share swap) with its parent, Emaar Properties. According to Moody’s, Emaar Malls has no intention of increasing its leverage from current levels or to enter any transaction to support Emaar Properties that would involve leveraging Emaar Malls’ balance sheet. Emaar Malls’ shareholders (excludi...

Through its new division, Centre of Digital Experience (CDX), Bank Islam Malaysia (Bank Islam) is setting up a platform-based solution as part of its efforts to develop a 100% digital bank using a flexible platform. Bank Islam has chosen Mambu and Experian as its two infrastructure partners, and has also signed a Memorandum of Understanding (MoU) with Malaysian fintech operator, Pod, to develop new product offerings. The new CDX solution is expected to be launched in the second quarter of 2021. Why it matters? From a corporate perspective, the CDX platform will en...

According to Malaysia’s Finance Minister Tengku Zafrul Aziz, the country’s Gross Domestic Product (GDP) is showing signs of progress with a 24% increase from MYR 289.4 billion in the second quarter of 2020 to MYR 357.4 billion in the last quarter of 2020. According to Tengku Zafrul, the country’s ongoing National COVID-19 Immunisation Programme, its economic recovery plan, as well as the gradual reopening of the country’s economy and global trade were said to be the key drivers for the progress in the econ...

The Fitch Solutions Country Risk and Industry Research (Fitch Group Unit) forecasts Bank Negara Malaysia (BNM) to cut down interest rates to 1.50% by the end of 2021 to tackle the economic repercussions of COVID-19. The inflation rate is estimated to remain at 1.8% resulting in BNM to cut down policy rates further owing to the absence of fiscal resources for stimulus spending.  Why it matters? The efforts of BNM will cushion the blows to Malaysia’s economy due to the third-wave infections of COVID-19 and the reinstatement of the Movement Contro...

The United Nations Development Programme (UNDP), Istanbul International Center for Private Sector in Development (IICPSD) and the Participation Banks Association of Turkey (TKBB), have agreed to collaborate on mobilising Islamic Finance for the effective implementation and achievement of the Sustainable Development Goals (SDGs). In this regard, the Memorandum of Understanding (MoU) signed by the UNDP and TKBB will focus on enhancing ongoing initiatives and the evaluation of new opportunities. TKBB, which operates in the banking and finance indu...

By definition, digitalisation is the application of internet technologies to transform a business model to render distinct divisions of customers and profits, where value-added possibilities are brought into play. In the current situation, asnaf muslimpreneurs should embrace digitalisation through customisation and assimilation for secured business survival sourced from the continuity of demand and profit. We refer to the asnafs who are running businesses as “asnaf muslimpreneurs”.The present write-up examines these questions. Q#1 – What are the benefits of the asnaf muslim...