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null EPICENTRE November 2021: Value-based Intermediation expanding coverage to real economic sectors


EPICENTRE November 2021: Value-based Intermediation expanding coverage to real economic sectors
Value-based Intermediation expanding coverage to real economic sectors
“Islamic finance and ESG investing share similar principles of being a good steward to society and the environment through prevention of harm and attainment of benefits. With many similarities, it is inspiring to see Islamic finance making significant headway and contributions in the ESG space in recent years.”
- Governor Nor Shamsiah Mohd Yunus of Bank Negara Malaysia
[A quote from Euromoney's interview article "Malaysia brings Islamic finance and ESG together"]

The financial industry plays a critical role in supporting the sustainable business growth and lifelong cycle of production of real sectors to contribute directly to the Malaysian economy. In the pursuit towards embracing sustainability agenda, the Value-based Intermediation guidance documents are expanded to capture broader segment of industry in its value-based advocacy.

Recently, the VBI Financing and Impact Investment Framework (VBIAF) Sectoral Guide Working Group has released the second cohort of the VBIAF Sectoral Guides. These Sectoral Guides focusing on Oil & Gas, Manufacturing and Construction & Infrastructure, are a continuation to the series of guidance document for the financial industry to incorporate environmental, social and governance (ESG) risk considerations in their financing and investment decision making.

In order to ensure the effectiveness and practicality of these guiding documents, feedback from the general public is essential. For this reason, the Working Group invites the public to provide feedback on all three (3) guiding documents for the benefit of the industry as well as the nation as a whole.

The public feedback will be conducted for a period of three (3) months starting 7 October 2021 and all responses and feedback to be submitted by 7 January 2022 via the following link:

The public is also invited to attend a townhall session which will provide an insight to the Sectoral Guide documents and discussion platform for industry players and technical experts to share feedback. Register now!

Download the infographic below to get more information on the 2nd  cohort of the VBIAF Sectoral Guides.

In addition, the Royal Award of Islamic Finance (The Royal Award) has released the final Royal Award Winner Commemorative Booklet featuring Shaikh Saleh Abdullah Kamel, the 2010 Royal Award recipient. 

The MIFC Team
Download infographic

SC launches fiver year Capital Market Masterplan to support Malaysia's next stage of growth​​​​

The Securities Commission Malaysia (SC) launched the third Capital Market Masterplan (CMP3), which will serve as a strategic framework for the growth of Malaysia’s capital market over the next five years. 
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Deputy Governor's Keynote Address at the 16th International Shariah Scholars Forum (ISSF) - "Islamic Finance and the Fiqh of Crisis Management"

As the world navigates beyond the pandemic, agility in thinking, approach and process is the way forward in dealing with the transformed future. This is where the Shariah community has to elevate itself, providing guidance that serves as the setting compass for institutions in charting new strategies and enabling the structuring of new innovative solutions.
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Islamic Finance and the Sustainable Development Goals Thought Leadership Series

The International Shariah Research Academy for Islamic Finance (ISRA), in partnership with Scotland-based Islamic Finance Council UK (UKIFC), has launched the final report in its 4-part thought leadership series designed to assist and encourage active engagement in support of the UN Sustainable Development Goals (SDGs) by the global Islamic finance sector.
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Deputy Governor's Opening Remarks at the World Halal Business 

Within the global sphere, the prospect of the halal economy is huge and this presents an excellent narrative with enormous prospects for Malaysia, given the forefront position in the global halal economy. Ranked top in both Islamic finance and Islamic economy, these trends open up opportunities to marry both of these segment.
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Assistant Governor's Opening Remarks at the Launch of the World Bank's Islamic Trade Finance Report

Trade-based solutions can offer a viable option for businesses to ease liquidity constraints to rebound from the pandemic impact. Given the nature of the exposures, this warrants Islamic financial institutions (IFIs) to take an exploratory approach to new trade-based offerings and allows for a better understanding of the risks and their dynamics thus enabling IFIs to put in place the appropriate framework and policies.
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Islamic banks' reputation surges amid COVID-19 pandemic: Carma Asia report

In Asia, Malaysian Islamic financial entities garner the most media coverage and positive sentiment, according to Carma Asia Report. The analysis revealed the media gravitated towards strong focus of digitalisation effort and CSR activities by the banks.
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INCEIF partners with Monash Business School’s Pandemic Research Group to bring the Islamic finance perspective to key global pandemic issues as the world resets and reforms

The International Centre for Education in Islamic Finance (INCEIF) and Monash University signed an MoU to explore the pivotal role of Islamic finance in socio-economic recovery due to the pandemic.
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iTEKAD 2.0 introduced to extend support for the Asnaf and B40 communities

Three Islamic banks namely Bank Muamalat, CIMB Islamic, and Bank Islam Malaysia Berhad, are stepping up their efforts to better serve the asnaf and B40 communities in facing the effects of the COVID-19 pandemic through the expansion of the iTEKAD programme ("iTEKAD 2.0").
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Fitch Ratings: Sukuk Momentum to Stay Intact, Short-Term Headwinds to Persist

Fitch Ratings expected that sukuk momentum to continue over the medium term supported by intact investor appetite, funding diversification and refinancing needs. 
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Moody’s: Malaysia continues to dominate the sukuk market in Southeast Asia

Malaysia is expected to continue to dominate global sukuk issuance with activity primarily denominated in local currency, according to a report by Moody’s Investors Service. Malaysia remains the largest contributor with issuances up by 15% at USD37.5 billion in the first half of 2021 (1H21) compared to 1H20.
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Halal industry to generate RM56b export revenue in 2025

The Malaysian halal industry is expected to contribute 8.1% to the country’s Gross Domestic Product (GDP) and generate RM56 billion export revenue in 2025 compared to RM30.6 billion in 2020, according to the 12th Malaysia Plan (12MP) document released by the Economic Planning Unit.
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KPMG and IBFIM to drive sustainability and VBI initiatives for Malaysia’s Financial Services industry

KPMG Malaysia has joined forces with the Islamic Banking and Finance Institute Malaysia (IBFIM) to drive sustainability and VBI initiatives for Malaysia’s financial services industry.
Read More
View booklet here
Islamic Finance Dashboard
Upcoming Events
2nd VBIAF Sectoral Guide Townhall
Date:  17 November 2021

Click here for more information on upcoming events
Global News on Islamic Finance
  1. The IFSB issued the Ninth Edition of its Annual Flagship Publication: The Islamic Financial Services Industry (IFSI) Stability Report 2021
  2. IIFM launches practical Shari’ah-Compliant solutions for new benchmark Risk-Free Rate (RFR)
  3. The IFSB Issues Exposure Draft of the Core Principles for Islamic Finance Regulation (Financial Market Infrastructures) (ED- 26) for Public Consultation
  4. The 15th IFSB Summit to Discuss on Islamic Finance and Digital Transformation: Balancing Innovation and Resilience
  5. IsDB: Economic Empowerment Toolkits launched going beyond Shariah compliance to create impact
  6. Indonesia’s Omnibus Law: Halal Certification to Impact Businesses
  7. The Philippines invites more investments from Malaysia in new growth sectors
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