Inaugural Islamic finance cluster is a global eye-opener

KUALA LUMPUR: The introduction of the Islamic Finance cluster in the Malaysia International Halal Showcase 2018 ( MIHAS 2018) is an eye-opener which will indirectly pave the way to creating global awareness about Islamic trade finance.

Association of Islamic Banking Institutions Malaysia (AIBIM) director, Mazura Mohamed Jamil said the platform at this year’s MIHAS would enable major participation of delegations, key players and local small and medium enterprises (SMEs) to gain massive information on this particular untapped trade sector.

“There is a very big demand in this area, yet dissemination of information is still lacking among the key players, locally and internationally. This facilitation of Islamic trade finance is a mustdo and this is why the urgency today.

“This year is a proud moment for AIBIM to be able to collaborate with our main strategic partner, Malaysia External Trade Development Corporation (Matrade) in introducing Islamic finance within this emerging halal industry,” she told Bernama in an exclusive interview recently.

Mazura said with 13 participating banks comprising three international and 10 local banks offering Islamic trade finance

There is a very big demand in this area, yet dissemination of information is still lacking among the key players, locally and internationally. This facilitation of Islamic trade finance is a must-do and this is why the urgency today. Mazura Mohamed Jamil, AIBIM director

products, the visibility of this specific halal component would churn out more opportunities and success stories for Malaysia which aimed to be a global halal hub by 2020.

“The increased number of banks participating with their only-syariah compliant products are indeed a big chance not to be missed by the exhibitors and delegations to access information and engage directly.

“The rule of participation (for these banks) is quite rigid this time. Their conventional products are restricted, and only Shariahcompliant items are allowed because we are very much performance-driven in this sense, in order to reach out to more companies at the global level.

“This cluster provides more visibility to the halal fraternity, adding up to our prime focus -- the awareness we want to propagate within this halal showcase. This would certainly benefit the SMEs and potentially drive collaboration with big players in the market,” she said.

Among the participating banks are Maybank Islamic, CIMB Islamic, RHB Islamic, OCBC AlAmin, UOB Islamic and Standard Chartered Saadiq.

Noting that 33 per cent of the 2016 global trade comprised Shariah- compliant composition, Mazura said there was still room for Islamic trade finance to be fully leveraged with proper facilitation and adequate exposure.

AIBIM and the 13 member banks are scheduled for 10 slots of Islamic trade finance comprising talks and a CEO forum, as part of MIHAS, the world’s largest halal trade show being held at the Malaysia International Trade and Exhibition Centre (MITEC), here.

Concurring with Mazura, iHalal Management and Science (iHALALMAS) director, Dr Faridah Hassan opined that Islamic trade finance is still relatively new in the country.

“I would say relating to halal, a lot of times we hear about Islamic finance rather than Islamic trade finance. This is very timely to promote and come out with a solution or recommendations on what priority should be given in (also) promoting this sector to other parts of the world,” said Faridah.

Therefore, she said, a colloquium where researchers from local and international universities would be presenting their findings on developments in the Islamic trade finance and halal sphere would be part of a one-day programme dedicated to Islamic trade finance scheduled for tomorrow (April 6).

“This year is our 5th year being a strategic partner with MATRADE, but this is our very first time conducting such a sharing-knowledge session, in collaboration with AIBIM.

“The speakers who have volunteered to come and share the latest research and also topics of interest for the future, will not only be academicians but also Muslim scholars and practitioners such as the Mufti from Pakistan, who is also a Shariah Board chairman in Fiji, as well as in Pakistan,” she said, adding that the public is most welcome to acquire more information from the event.

Faridah said the high interest among emerging countries like Japan and Taiwan to learn from Malaysia in this area is an interesting prospect that Malaysia should look into more aggressively and actively real soon.

When asked on the urgency of having the Islamic trade finance cluster after 14 years of MIHAS, MATRADE director of its Halal, F&B and Agro-Based Section, Mohammad Aminuddin Sham Tajudin explained that the introductory in the 15th edition this year is relevant to the demand within the industry.

“To be reliable, MIHAS will need to create realistic and relevant values. In terms of content development, this specific cluster with its knowledge-sharing element is highly anticipated by those who come to the showcase.

“It ( Islamic finance cluster) is specifically designed for those who are just not interested to find sourcing for their products but also to gain and share their own experiences and expertise in various fields related to Islamic trade finance,” Aminuddin said. — Bernama