KUALA LUMPUR: The rapid internationalisation of Islamic finance will hinge on three key factors including the wide range of global supply of high-quality Islamic financial products and services, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz.
Speaking at the Global Islamic Finance Forum 2012 on Wednesday, she said Islamic finance needed to be dynamic and innovative, and hence the second factor was a diverse and dynamic intermediaries and market participants with a global focus. The third factor was the required talent to steer the Islamic financial sector towards increased internationalisation, she said.
Zeti said these factors were crucial to ensure the sustainability of Islamic finance, which was undergoing rapid internationalisation.
Commenting on the first factor, she said there must be a wide range of global supply of high-quality Islamic financial products and services to meet the requirements of international businesses.
"In this phase of growing international transactions, Islamic finance needs to be dynamic and innovative, with an emphasis on the development of diversified and comprehensive Shariah-compliant financial solutions to meet the differentiated needs of various businesses, including the requirements of international businesses and thus facilitate cross-border investments," she pointed out.
Secondly, Zeti said there was a need for a diverse and dynamic intermediaries and market participants with a global focus.
"This includes having Islamic banking, takaful and capital market players that venture beyond domestic boundaries to tap global opportunities. Global ancillary services that are proficient in the Shariah, also have an important role in providing supportive professional services for such intermediaries and market players to effectively embark on such cross-border activities," she added.
The required talent was also crucial to steer the Islamic financial sector towards increased internationalisation.
She said the new financial landscape would require world-class business talent and boards with knowledge of the risks associated with internationalisation.
Zeti pointed out greater collaboration between the industry and education service providers would be important to support the talent requirements of the industry in its new phase of development.
(The Star Online / 19 Sep 2012)
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com