RIYADH: The Securities Commission (SC) has signed a memorandum of understanding (MoU) with the Islamic Development Bank Group (IsDB), paving the way for greater cooperation in Islamic capital markets (ICM) and broadening the reach of Islamic fintech and social finance, particularly waqf.
Waqf are assets that are donated, bequeathed, or purchased for being held in perpetual trust for general or specific charitable causes that are socially beneficial.
Prime Minister Datuk Seri Anwar Ibrahim and IsDB president and chairman Dr Muhammad Al Jasser witnessed the signing of the landmark MoU, the first of its kind between the Malaysian capital-market regulator and the premier multilateral development bank of the Global South.
SC chairman Datuk Seri Dr Awang Adek Hussin and IsDB vice-president of finance and chief financial officer Dr Zamir Iqbal signed the MoU on the sidelines of the IsDB annual general meeting in Riyadh, Saudi Arabia.
Anwar and Muhammad Al Jasser, in an earlier meeting in March 2023, agreed that regulators, authorities and businesses in Malaysia should work closely with IsDB to explore new areas of collaboration.
These include developing and piloting innovative Islamic-finance products, promoting the halal industry, and supporting micro, small and medium enterprises (MSMEs).
Under the MoU signed yesterday morning, both the SC and IsDB will collaborate in several key areas, including facilitating innovation in Islamic fintech, promoting the development of Islamic social finance, and encouraging the inflow of investments.
It also aims to increase capacity building, knowledge sharing and joint technical projects in key interest areas related to ICM, which can also be capitalised by both institutions for the benefit of other IsDB member countries.
“The collaboration marked a historic milestone for the SC and IsDB. We now intend to broaden and deepen the state of play for Islamic fintech via scalability and new markets as well as amplify opportunities through social finance including the development of waqf assets, by using our respective capital markets and financial development expertise,” Awang Adek told the media.
He said the SC intends to broaden and deepen Islamic fintech via scalability and new markets as well as amplify opportunities through social finance, including the development of waqf assets, by using its respective capital markets and financial development expertise.
Awang Adek added that the MoU is also in line with the key strategic initiatives for the Malaysian ICM under the Capital Market Master Plan 3 (2021-2025), including expanding the reach of ICM to the broader stakeholders of the economy and embracing collaboration and innovation for growth. — Bernama
