PM: Islamic Finance looks promising

KUALA LUMPUR: There are many opportunities for Islamic Finance to lead the financial fraternity into a new growth era, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

He said Islamic Finance needed to quickly integrate itself with the international financial system and prove itself a viable alternative to the conventional financial system practised in most parts of the world.

“Many observers are increasingly considering the Islamic Financial system with renewed respect and admiration, as such, Islamic Finance must be prepared to take on a new dimension to meet the changing demands of business in an increasingly globalised environment,” he said at the launch of Standard Char–tered Saadiq Berhad yesterday.

Abdullah said Malaysia was prepared to lead any attempt to reform the global financial system by infusing concepts and themes borrowed from Islamic Finance.

The recent global financial meltdown illustrated a desperate need for a system based on the principle of profit-sharing, where both parties in the contract are subjected to potential losses and returns.

“It is a system that is both fair and equitable as both parties are presented with a win-win situation where losses would not burden one party only,” he said.

He said by transforming into an essential element of global finance, Islamic Finance would surely end its perceived position as a niche or boutique financial service.-NST

By Ng Cheng Yee