Talent deficit in Islamic finance affects quality sukuk issuance

  • Banking
  • Monday, 21 Aug 2017

Malaysian Institute of Accountants (MIA) president Datuk Mohammad Faiz Azmi said the new regulatory body (NRB), which is proposed to be set up by the Committee to Strengthen the Accountancy Profession (CSAP), would help monitor the CFOs and recommend appropriate improvements as and when needed.

KUALA LUMPUR: The shortage of high-quality sukuk in the Islamic finance market is a result of the deficit in virtuous talent, a gap that must be filled fast for Malaysia to remain as the front runner in the industry, globally.

Former Malaysian Institute of Accountants (MIA) president Datuk Mohammad Faiz Azmi said this could pose a great threat to the future growth of the industry as well as limit the potential advancement in the sukuk market.

“Islamic banks don’t have enough high-quality assets to invest in. If the instrument is below than the BBB-rating, they can’t invest in it because they want to preserve the principle value,” he said.

Mohammad Faiz also said there was a lack of safe assets at present, leaving issuances by Khazanah Nasional Bhd or the government, always oversubscribed.

On the future of global sukuk issuance, Mohammad Faiz believed the opportunity now existed for the issuance from Indonesia, which has a lot of infrastructure plans such as to build more roads, have trains, ports, better airports and others.

“When you want to have international investors to invest in (your country), it has to be something that they can understand, a project that makes sense especially from the tax point of view and accounting purposes,” he added.

Mohammad Faiz urged players in the local Islamic finance to work together in nurturing and building a talent pool to create a better environment, thus help increase the industry’s contribution to the economic growth as a whole.

“Currently we have many people very interested in the industry, but their knowledge is very shallow,” he pointed out.

In a recent Bank Negara strategic paper, the central bank revealed that the annual growth rate of the Islamic finance industry had slowed from 24.2% in 2011 to 8.2% last year.

Mohammad Faiz said MIA has launched the Mini Pupillage Programme to create a pool of knowledgeable and specialised talents in the area of Islamic finance, which would contribute to their respective organisation and industry. — Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Business , Sukuk , Faiz , Azmi , sukuk , talent ,


Next In Business News

Stocks, oil skid as China's COVID protests roil sentiment
Cushioned from global impact
Bursa likely to trend higher on foreign funds
The Week Ahead: 3Q earnings , PMI, inflation
Caution despite typical year-end stock rally
Effective social protection system vital
News Corp shareholder concerned about Fox merger
What’s in it for me? – A consumer’s perspective on digital banking
Strong demand for gold jewellery from Singapore
Germany’s Brenntag in takeover talks with US rival

Others Also Read