Najib: Shariah-compliant securities will attract more investors

KUALA LUMPUR, Nov 30 — Prime Minister Datuk Seri Najib Razak is confident the introduction of shariah-compliant securities will attract more investments from the Middle East.

Najib: Shariah-compliant securities will attract more investors

Najib: Shariah-compliant securities will attract more investors

Najib said luring foreign investments into the country was Malaysia’s top priority towards becoming a high-income status country. — Reuters picture.
“With the onslaught of a new wave of investments, more job opportunities will be created and this will indirectly make our economy stronger,” he said in his latest Facebook posting.

Najib, who is also Finance Minister, said luring foreign investments into the country was Malaysia’s top priority towards becoming a high-income status country.

“Based on this aspiration, the Securities Commission has introduced revised Shariah-compliant securities in order for Malaysia to draw more investments from the Middle-East,” he said.

The Securities Commission announced yesterday an updated list of Shariah-compliant securities approved by its Shariah Advisory Council (SAC), based on the revised screening methodology announced on June 18, 2012. Under the revised screening methodology, SAC will adopts a two-tier quantitative approach which applies the business activity and financial ratio benchmarks.

The revision took into consideration the rapid development taking place in Malaysia’s Islamic finance industry since the Shariah screening methodology was first introduced in 1995. The revision will potentially spur greater inflow of foreign Islamic funds into Malaysian Shariah-compliant equities, thus expanding the Islamic capital market’s global reach, as outlined in the Capital Market Masterplan2.

The updated list, which took effect yesterday, will feature a total of 653 Shariah-compliant securities which constitute 71 per cent of the 914 listed securities on Bursa Malaysia. The list includes 16 newly classified Shariah-compliant securities and excludes 158 from the previous list issued in May.

To facilitate transition under the revised screening methodology, investors are given six months from Nov 29, being the effective date of the list of Shariah-Compliant Securities, to dispose off securities that are excluded from the list. During the six-months period, dividends received and capital gains realised from the disposal of such securities may be retained by investors, without the need to channel any portion of the dividends and capital gains to Baitulmal and/or charitable bodies. — Bernama.

CGC Aims To Finance 400 SMEs Under Islamic Portfolio Guarantee Scheme

KUALA LUMPUR, Nov 21 (Bernama) — Credit Guarantee Corporation (CGC) expects to provide financing worth RM200 million to about 400 small and medium enterprises (SMEs) under its first Islamic Portfolio Guarantee (PG) Scheme, in collaboration with Standard Chartered Saadiq Bhd.

CGC Aims To Finance 400 SMEs Under Islamic Portfolio Guarantee Scheme

CGC Aims To Finance 400 SMEs Under Islamic Portfolio Guarantee Scheme

CGC Managing Director Datuk Wan Azhar Wan Ahmad said the Islamic PG scheme will be executed based on Islamic financing and Shariah compliant terms to further improve channels of financing for SMEs in the country.

“CGC has been at the forefront of SME development since its inception 41 years ago.

“We will continue to play a prominent role in SME financing especially for marginal but potentially viable SMEs,” he told a press conference at the signing of the Islamic PG agreement between CGC and Standard Chartered Saadiq Thursday.

The new scheme offers financial support of between RM100,000 and RM800,000 with flexible financing tenure of 12 to 84 months depending on the SME’s cash flow and other requirements.

Wan Azhar said the financial tenure would be around three to five years and not all companies would go as far as 10 years.

Commenting on the growth of SME sector, he said the Bumiputera community is hungry for business investment which sometimes can be overwhelming and there are tendencies for them to be involved in businesses which are diverse.

“That creates problem for them in term of focus, so we will create a scheme for specific sectors that will allow them to focus on a particular business type,” Wan Azhar added.

He also said the scheme would allow CGC to monitor the borrowings of the other businesses of SMEs to ensure they would be able to control and guide the business operations.

The scheme will provide greater tolerance towards Bumiputera borrowers in terms of slightly lower cost, flexible eligible criteria and longer tenure if possible, he added.

As for PG conventional scheme, Wan Azhar said to date, CGC has released RM820 million to almost 3,000 SMEs within five years, at an average of RM400,000 to each SME.

Meanwhile, Standard Chartered Saadiq and Global Head Chief Executive Officer Wasim Saifi said the SME sector was one of the fastest growing segments in Islamic finance and by offering the PG scheme, it reflected the bank’s commitment towards the vital and potential segment.

Under the agreement, CGC guarantees 70 per cent of the approved total principal amount undertaken by SMEs and assists in verifying the credibility of applicants in consultation with Standard Chartered Saadiq.



Islamic finance award open for nomination

KUALA LUMPUR: Malaysia’s Royal Award for Islamic Finance (The Royal Award) is open for nomination for its third global search to honour an exceptional individual in the field of Islamic finance.

Islamic finance award open for nomination

Islamic finance award open for nomination

The Royal Award, which was inaugurated in 2010 as a biennial award, is spearheaded by Bank Negara and the Securities Commission (SC) in support of Malaysia’s Islamic finance marketplace. The Royal Award focuses on an individual’s record of achievement and outstanding contribution to the advancement of Islamic finance globally.

Previous recipients recognised for their efforts in expanding Islamic finance were Shaikh Saleh Abdullah Kamel, founder of the Saleh Kamel Centre for Islamic Economy, at Al-Azhar University, Egypt, and Iqbal Khan, presently chief executive officer of Fajr Capital.

An independent seven-member international jury, chaired by former Malaysian Deputy Prime Minister and chairman of the World Islamic Economic Forum Foundation, Tun Musa Hitam, will select the deserving individual, according to a statement issued by the SC.

It said the selection criteria of The Royal Award for Islamic Finance encompass both qualitative and quantitative aspects.

of an individual’s exceptional contribution towards Islamic finance globally.

They include financial innovation and pioneering work, exceptional leadership, adoption and acknowledgement within the industry, and inspiration and influence towards future progress and development of Islamic finance.

The closing date for nomination is Jan 31, 2014, and interested persons and parties can submit their nomination online at or email [email protected]