PM Anwar Pledges RM100 Million to Boost Islamic Finance Innovation

PM Anwar Pledges RM100 Million to Boost Islamic Finance Innovation

by May 28, 2024

Prime Minister Datuk Seri Anwar Ibrahim has pledged RM100 million to foster innovation and new financial solutions to advance the Islamic finance sector, according to a Bernama report.

This initiative, aimed at strengthening partnerships and encouraging sustainable practices, was announced at the Global Forum on Islamic Economics and Finance (GFIEF).

Anwar, who also holds the Finance Minister portfolio, introduced two projects: a greening halal businesses pilot programme and ‘Project Hassan’.

The greening halal businesses initiative, a collaborative effort involving the Islamic Development Bank (IsDB), the Ministry of Finance, Bank Negara Malaysia (BNM), and the World Bank, seeks to help Malaysian halal businesses adopt environmentally friendly practices.

This will be achieved through technical training, tools for measuring greenhouse gas emissions, transition financing, and certification processes.

Project Hassan, meanwhile, is a joint venture by Lembaga Zakat Negeri Kedah, the MIFC Leadership Council (MLC), the Association of Islamic Banking and Financial Institutions Malaysia, and INCEIF University.

This project is dedicated to improving the socio-economic conditions of the asnaf community in Kedah, with a specific goal of allocating RM10 million to aid paddy farmers and uplift the asnaf community.

Earlier today, Anwar also announced a RM6 billion allocation for private capital investment under KWAP’s Dana Pemacu initiative, focusing on financial inclusion and other key sectors.

In addition, he also shared about a RM100 million grant approved in March 2024 for a MARA waqf endowment fund, intended to support education and entrepreneurship through private sector contributions.

He also highlighted extended tax incentives for stock-based waqf initiatives and a RM500 million loan financing plan for property development on waqf land.

The Securities Commission (SC) is set to facilitate fundraising for waqf projects via peer-to-peer financing and equity crowdfunding platforms, with the government matching funds through the Malaysia Co-Investment Fund (MyCIF) at zero percent financing.

Anwar Ibrahim

Anwar Ibrahim

Prime Minister Anwar underscored the necessity of ongoing innovation and the importance of embracing future advancements. “Transformation involves not just filling gaps, but also adapting to future demands,” he stated.

Moreover, Anwar emphasised that while Shariah compliance in digital assets and smart contracts is crucial, it is equally important to ensure these technologies empower communities, enhance unity, and contribute to building resilient societies.

 

 

Featured image credit: Edited from Freepik