PNB and Inspire Corp launch Japan’s first Halal fund

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Monday 14th April 2014
PNB and Inspire Corp launch Japan’s first Halal fund Daily Cover GLOBAL: Japan’s first Shariah compliant fund has been established by Malaysian state-owned fund manager Permodalan Nasional (PNB) and Japanese investment firm Inspire Corp. The fund, which has been instituted to aid small and medium companies in Japan to do business in Islamic countries, has an initial funding of JPY4.95 billion (US$48.66 million) which is expected to grow to JPY6 billion (US$59 billion) by the end of the year. The Islamic fund industry has posted a cumulative annual growth rate of 9.41% since 2009, and as at December 2013, was valued at approximately US$73.7 billion, with approximately 1,053 funds established as at the end of 2013. The presence of Japanese players in Islamic finance is currently minor, but the few names that are involved are present in the industry’s main markets, such as Sumitomo Mitsui Banking Corporation, which last month added Islamic banking operations in Malaysia to its services, and Nomura Islamic Asset Management, which is active in both Malaysia and the Middle East. Speaking to Islamic Finance news Daniel Choong, CEO of Nomura Islamic Asset Management Malaysia, gave his view on the entry of Japanese firms in Islamic finance: “Not many of the players moving into the Islamic space currently are Japanese, but I believe we can bring a unique perspective to the market; coming from Asia, as opposed to the players from Europe and the US.” PNB and Inspire Corp have stated that the purpose of the new fund is to help Japanese companies acquire Halal certification for their processed food products and build sales networks in Islamic nations. According to the Malaysian Ministry of International Trade and Industry (MITI), the Halal food industry currently only has the capacity to support 20% of the global Halal demand. The Malaysia International Halal Showcase (MIHAS), the 11th iteration of which was held last week in Kuala Lumpur, was hosted by MITI and the Malaysia External Trade Development Corporation and featured four exhibitors from Japan offering Halal certified products. 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