Published: 2009/10/21
ALTHOUGH Malaysia is recognised as the market leader in Islamic finance, there is still scope to enhance its position, says National Economic Advisory Council chairman Tan Sri Amirsham Abdul Aziz.
He said local technology companies should reposition themselves and fully leverage on the recognition as a solution provider for the Islamic finance system.
“ We also have the potential to market ourselves as the centre for Islamic finance technology solutions,” he said in his keynote address at the formalisation of partnership between IA Group and Callatay & Wouters.
The two companies are partnering to develop an Islamic banking solution for the region and the global market.
Callatay & Wouters is a provider of core banking and multi-channel distribution solutions while IA is a local management consulting, technology and outsourcing company.
Lack of active participation by home-grown technology companies had led to European and Indian technology firms to sell Islamic banking and Takaful solutions to Malaysian banks and insurance companies, said the former Minister in the Prime Minister's Department in charge of the Economic Planning Unit.
“ We should strive for more local companies that can offer technology solutions in Islamic finance such as Takaful solution, Sukuk management, Wealth & Investment solutions, information security and many more.
“ Our local companies already have a good standing in providing these systems under the conventional banking systems. So why not Islamic banking?" he asked.
Amirsham said there was a need for some form of coming together in future between stakeholders and related parties in Islamic finance.
The private sector represented by the Association of Islamic Banks and the Malaysian technology vendors should work together with the government and related agencies to initiate strategic initiatives to promote Malaysia as a global one-stop Islamic Banking Centre for investments, products and services and technological innovations, he said.
“ Given our dominance, expertise and advancement in Islamic finance, this sector provides comparative advantage economically that should be exploited to its fullest extent,” he added. - Bernama