MALAYSIA: Continuing the
strong momentum of the first day of IFN Asia Forum 2015, the IFN Asia
Investors Day gathered an upward 550 delegates to an event-packed day at
the Kuala Lumpur Convention Center yesterday, the 26th May.
Adding to the wide range of topics covered on the first day, the second day
of the forum explored various themes in the investment space including:
asset management trends, Waqf, crowdfunding, Islamic treasury products,
cross-border activities and human capital development among others.
The event commenced with a keynote address by Dr Nik Ramlah Mahmood, the
deputy CEO of Securities Commission Malaysia (SC), who brought to attention
the vital need to refocus the industry’s efforts towards creating
risk-sharing structures to enhance the appeal of Shariah finance among
investors. Dr Nik emphasized that while innovation is a persistent theme of
the Islamic capital markets, however, the replication and adaptation of
conventional instruments to fit the Shariah mould “may not be sustainable
as market demand and expectation evolve.”
To that end, Dr Nik confirmed that the SC, which launched a joint
publication on ‘Islamic Capital Markets: Principles and Practices’ in
collaboration with International Shariah Research Academy for Islamic
Finance during the forum, will be issuing further Shariah parameters to
facilitate innovation and development in the industry.
Reasserting its lead and ambition as the world’s leading Islamic finance
power outside of the Muslim world, the UK will be strengthening bilateral
ties with Malaysia. Addressing the audience, Alan Yarrow, the Rt Hon the
Lord Mayor of the City of London, said that London will explore further
Shariah financial opportunities with the Southeast Asian Islamic finance
powerhouse, including in the area of education and training.
Industry leaders are also optimistic that the Islamic wealth management
sector is poised for further growth over the next five to ten years as the
Asian region continues to be home to rising affluence on the back of
increasing demand for Shariah wealth management solutions. “Given the
current yield climate, this will spur interests in investment-linked
product and unit trusts,” opined Syed Abdul Aziz Syed Kechik, CEO of OCBC
Al-Amin Bank.
Another prevalent theme was the avenues Asian passporting funds could open
for the Islamic funds industry. The ASEAN Collective Investment Scheme was
a particular focus and while the infrastructure is most welcomed by the
industry, however, market players noted that for the Islamic funds segment
to truly capitalize on the ASEAN CIS, more countries particularly
Indonesia, will need to come onboard. Gerald Ambrose, CEO of Aberdeen
Islamic Asset Management, suggested the Asia Region Fund Passport (expected
in 2016), which includes more jurisdictions including the Philippines, as
another option for Islamic fund managers to reach a wider investor base.
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