‘Banks, financial institutions vital in rebuilding country’s economy’

KUALA LUMPUR: Banking and financial institutions have a collective role to play in rebuilding the country after the havoc caused by Covid-19, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

He said efforts to realise the goal is not solely the government’s responsibility.

In his speech at the launch of BangKIT Micro Financing by Bank Islam Malaysia Bhd yesterday, he said Islamic social finance is relevant in addressing current challenges in reviving the country’s ailing economy.

“Islamic banking has great potential to capitalise on Islamic social financial instruments such as zakat, waqf and alms.

“These instruments should not be limited to providing the basic needs and livelihood of the needy or for religious purposes such as the construction of mosques and madrasah.”

Mustapa said the instruments could be expanded to develop the underprivileged and communities that have been severely affected by the economic uncertainty, to enable them to cope and become more self-reliant in the long run.

The introduction of the social finance programme under the Prihatin Economic Stimulus Package, iTekad Micro Financing, is an example of a programme to help and support B40 micro-entrepreneurs and the disadvantaged, whose livelihoods have been negatively affected by the pandemic.

“Covid-19 has changed the lives of us all. The impact is huge for all parties, especially micro and small enterprises.

“But we cannot give up. We must continue to work and be creative in ensuring the economy recovers. This is because the vaccine to prevent the spread of this pandemic is still a long way off,” he said. – Bernama