More Islamic industrial providers needed in fintech

Cardtrend Systems' managing director Chee Yong Mok says if Malaysia were able to get more Islamic industrial providers to get involved in the Islamic fintech market, the country would share a bigger pie in the global Islamic fintech market.

MORE Islamic industrial providers are needed to further strengthen Malaysia’s position as the leading Islamic financial technology (fintech) hub, says a homegrown digital economy enabler, Cardtrend Systems.

Its managing director Chee Yong Mok says if Malaysia were able to get more Islamic industrial providers to get involved in the Islamic fintech market, the country would share a bigger pie in the global Islamic fintech market.

“I believe Islamic fintech has become the new centre of interest for information technology or IT startups and development since the Islamic Digital Economy had been identified as one of the key economic growth activities in the Shared Prosperity Vision 2030 by the government,” he told Bernama in a recent interview.

He says all relevant parties should work together to consolidate resources to develop the industry and solution providers should also work together to avoid unnecessary competition.

“I believe all industry players should plan and find their unique selling point before embarking onto the Islamic fintech industry.

“We need more participants in the industry, but more importantly, we need someone who has the will and preparation to be here for a long time,” he says.

Chee notes that Dinar Standard’s Global Islamic Fintech Report 2021 predicted the Islamic fintech market has the potential to grow up to US$128bil (RM542bil) by 2025 globally.

Citing Fintech News Malaysia, he says this gives industry players plenty of room to grow in Malaysia because less than 5% of fintech companies operating in Malaysia are catered to Islamic fintech.

“So, the demand for more trustworthy and secure Islamic industrial providers nationwide and in the region is rising every day.

“With the current market positioning and planning, I think Malaysia’s potential in remaining as the leading country in the Islamic fintech industry is promising,” he says.

As at Dec 31, 2021, the number of platform operators with options to offer syariah-compliant financing to the various segments of micro, small and medium enterprises had increased to six, compared to four in the previous year, according to the Securities Commission’s Annual Report 2021 released on March 28.