MALAYSIA INTERNATIONAL ISLAMIC FINANCIAL CENTRE
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Transcript of MALAYSIA INTERNATIONAL ISLAMIC FINANCIAL CENTRE
INTRODUCTION• Chaired by the Governor of Bank Negara Malaysia, the
MIFC Executive Committee acts as a single coordinating body to provide direction and ensure smooth implementation and efficient delivery of all MIFC-related initiatives.
• The committee comprises of top officials from relevant Government agencies, financial and market regulators, together with industry participants from the Islamic banking, takaful and capital market community in Malaysia.
• Membership to the Committee is based on appointment by His Honourable Prime Minister of Malaysia.
• On 14 August 2006 the Malaysia International Islamic Financial Centre (MIFC) initiative was launched to position Malaysia in the forefront of Islamic finance to capture one of the fastest growing economic sectors.
• Chaired by the Governor of Bank Negara Malaysia• The MIFC is supported by Bank Negara Malaysia, Securities
Commission Malaysia , Labuan Financial Services Authortiy and Bursa Malaysia.
• The MIFC’s private sector partners include Islamic banks and conventional banks with Islamic banking windows, investment banks, brokers, lawyers, Shariah advisory firms, Shariah scholars, accounting and tax advisers, ratings agencies and takaful providers.
HISTORY
Objectives of Malaysian Islamic Financial Centre (MIFC)
As one of the key intermediation linkages
in the global market place
MIFC have an important role in accelerating the process of bridging and
strengthening the relationship between
the international Islamic financial
markets and thereby expand the investment
and trade relations
In promoting capital and cross-border trade
flows between the financial communities
of these regions.
ROLE
S O
F M
IFC To act as an investment gateway to the
region specialising in Islamic fund and wealth management and as a takaful and
retakaful centre.
Significant developments in Malaysian economic and Islamic financial industry.
To act as a centre for origination, issuance and trading of Islamic capital market and
treasury instruments such as sukuk.
The MIFC initiative comprises a community network of the country’s financial sector regulators, including :
Takaful
Securities Commission Malaysia
Bank Negara Malaysia (Central Bank of Malaysia)
Re- Takaful
Capital Market Institution
Professional ancillary services companies which are participating and working collaboratively in Islamic finance
Human capital development institutions
Government ministries and agencies together with industry participation from the banking
Labuan Financial Services Authority and Bursa Malaysia (Kuala Lumpur Stock Exchange)
The MIFC Platform• Diverse pool of global and domestic players in
islamic finance• Wide range of innovative islamic financial
instruments
Comprehensive and competitive islamic financial
market
• Over 60% of outstanding sukuk globally• Pioneer in innovative structure • Wide investor base• Issuance facilitative framework
Sukuk hub
• Robust world class legal and regulatory framework• Well-developed shariah governance• Efficient dispute resolution mechanism for matters
islamic finance
Pioneer islamic legal, regulatory
and shariah infrastructure
The MIFC Platform
• Expertise in research and advisory• Thought leadership in applied islamic
finance• Islamic pool of high caliber professionals
Quality human capital
development infrastructure
• Strong economic fundamentals• Supportive government policies• Affordable cost of living• Multilingual and educated workforce
Conducive business
environment
Governance structure
• Executive Committee
The MIFC Executive Committee acts as a single coordinating body to provide direction and to act collectively in the implementation of
recommendations.
Function of Executive committee as a body to review existing policies for the comprehensive and
coordinated promotion of the MIFC initiative, to align the roles and responsibilities of the respective parts of
Government and the industry for the development of the MIFC initiative.
• Secretariat
The MIFC Secretariat functions as the working secretariat to the MIFC Executive Committee (the Committee).
The MIFC Secretariat functions as the single contact point on Islamic finance related matters, including the followings:
Application to establish International Islamic Banking (IIB) and International Takaful Operator (ITO)
Application to establish International Currency Business Unit (ICBU) Immigration matters for foreign Islamic finance professionals and their
dependants Foreign equity ownership and tax related matters
CONCEPT OF TAKAFUL• The principles of guarantee, derived from the word “Kafala”, is
the basis of Islamic insurance for example is Takaful.• Takaful means that the majority guarantees the loss of the
minority for example the majority shares the burden of the unfortunate minority via the pooling of funds.
• This form of co-operative insurance is already in existence in several countries, permissible by Shariah.
• Takaful practice the concept of “Tabarru’” meaning donation, which explicitly mentions that the money collected is to be used for the purpose of assisting “fellow participants who require assistance according to the terms agreed as long as these terms are not in conflict with the Shariah”.
Takaful Companies
• AmFamily Takaful Berhad• Etiqa Takaful• Hong Leong Tokio Marine Takaful• MAA Takaful Berhad• Prudential BSN Takaful• Sun Life Malaysia Takaful Berhad• Takaful Malaysia
CONCEPT OF RETAKAFUL• Retakaful is the Islamic alternative to the reinsurance
industry. In the conventional insurance industry, an insurance company reduces its risk of paying large claims by insuring a portion of its risk with another insurance company. The third party is called a reinsurer, and it helps the insurance company in situations involving natural disasters, widespread fires, riots, and other major events that significantly affect many policyholders at once.
RE-TAKAFUL COMPANIES
• ACR ReTakaful• BEST RE• MNRB Retakaful• Munich Re Retakaful• Swiss Re takaful
CONCLUSION• Malaysia has succeeded in implementing a dual banking system
and has emerged as the first nation to have a full-fledged Islamic system operating side-by side with the conventional banking system. The aspiration to establish a comprehensive Islamic banking and finance system has created a spill-over effect to the non-bank Islamic financial intermediaries which started to offer Islamic financial products and services. Such institutions include the takaful companies, the savings institutions for examples Bank Simpanan Nasional & Bank Rakyat and the developmental financial institutions for examples Bank Pembangunan dan Infrastruktur Malaysia and Bank Pertanian.