WORLD - OPINION - Surveying the industry landscape (Rushdi Siddiqui)

New Year Reflection: This survey highlights the Islamic finance industry's achievement and challenges, future direction, sukuk issuance and halal sector, among others
‘An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves.’ - Bill Vaughn

ISLAMIC finance is staying up for new year for ... The survey format is straight forward, 16 questions with multiple answers.

1. What are the objectives of Islamic finance (IF) and have they been met since its birth in early 1970s?  (source)

OPINION - Islamic finance, halal industry and the media

"MASS media is the medium that carries the message to the masses and is responsible for controlling our conclusions."

I'd like to dissect the above quote and see how the "transmission of message" is being coded and decoded by the Western media with respect to the halal industry and Islamic finance.

Neither the halal industry nor Islamic finance is time sensitive, hence, western/conventional media business editors often "bump" halal/Islamic stories for another day, regard them as insignificant or used only during "dry" periods - as they call it .(source)

OPINION - Gen Y and Islamic finance

There is an increasing disconnection between Islamic finance and Halal Industry and the Muslim customers of tomorrow: the youth.

 

Because of Google, YouTube, Twitter and Facebook (GoYouTwitFace), Generation Y see themselves as "change agents" using information in real time, witness the Jasmine Revolution sparked in Tunisia.

They are interested in making five-figure salaries while consciously balanced about the environment, the politically disenfranchised and the impoverished.

Their "care is their cause" and respect is no longer given to authority, slogans, pep-talks or motivational speeches, but it must be earned by deeds and actions. (full story - business times)

MALAYSIA - Labuan IBFC banking posts record pre-tax

KUALA LUMPUR: The Labuan International Business and Financial Centre's (Labuan IBFC) banking sector posted a record pre-tax profit for the financial year ended December 31 2010, it was disclosed yesterday.

The Labuan banking industry recorded its best ever performance in terms of pre-tax profits, which increased by 114.8 per cent to US$536.4 million (RM1.6 billion), compared with US$249.7 million (RM749 million) in 2009, said Bank Negara governor and Labuan Financial Services Authority (Labuan FSA) chairman Tan Sri Dr Zeti Akhtar Aziz. (full story)

BANKING - Affin (Malaysia) to convert Indonesia's Bank Ina into Islamic lender

KUALA LUMPUR: Indonesia's conventional bank PT Bank Ina Perdana, which is being acquired by Affin Holdings Bhd , will be converted into an Islamic bank - a process that will likely take two years.

Affin Islamic Bank chief executive officer (CEO) Kamarul Ariffin said the conversion of all 25 branches of the medium-sized Indonesian bank will be done "slowly". (full story)

BANKING - Maybank needs more time to cut BII stake

Malayan Banking Bhd Malaysia’s biggest lender by assets, plans to ask Indonesia’s regulator for an extension to sell down its stakes in PT Bank Internasional Indonesia, Chief Executive Officer Datuk Seri Abdul Wahid Omar said in an interview in Kuala Lumpur today. (full story)

OPINION - Muslim BRIC has arrived

THE investing and financing world is about country linkages that are economic and financial opportunities clustered as growth stories. The most recognised country linkage is BRIC (Brazil, Russia India and China): it conjures mental images of geographies, growth, size, demand, etc.

Another term that is increasingly invoked by businesses looking for opportunities is 'RDE,' or Rapidly Developing Economies, and includes examples of Brazil, China, India, Mexico, and so on. To put theory into practice, globally committed firms, like Thomson Reuters, have established positions like Global Head of RDE. (full story)

BANKING - Bank Islam gives up on Muamalat

Sources say Bank Islam decided not to bid for a controlling stake in the Indonesian lender because it was looking too pricey.


Kuala Lumpur: Bank Islam Malaysia Bhd (5258) has, after two years, given up its pursuit of Indonesia's oldest Islamic lender PT Bank Muamalat Indonesia. (source)

MALAYSIA - HALAL - Halal players urged to tap agri sector

KUALA LUMPUR: The agriculture sector, including palm oil, offers numerous opportunities for the halal industry to expand.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said developments in the agriculture and palm oil areas present opportunities for the halal food manufacturing sector and related downstream activities. (full story)

MALAYSIA - LIFESTYLE - Salamfone rolls out Islamic mobile service

KUALA LUMPUR: Salamfone Sdn Bhd has launched the world's first ever syariah-compliant mobile service in the world modelled after the principles of syariah and the five pillars of Islam.

 

In a statement yesterday, chief executive officer Kamshul Kasim said Salamfone will fundamentally appeal to the large Muslim market here, who is increasingly desirous of practising a more syariah-compliant way of life.

"Salamfone is more than just a product. Our value proposition is to share the values of Islam, instil and inspire them towards a wholesome Muslim lifestyle in every way.

"I believe the establishment of a syariah-compliant mobile service is so timely and relevant to the Muslim community in Malaysia," Kamshul added. (full story)

INDEX - Malaysian firms form core of SAMI Halal Food Index

Sime Darby, Nestle (M) and Genting Plantations are among the top companies on the Socially Acceptable Market Investments Halal Food Index.
 
Kuala Lumpur: Malaysian listed food companies form over a third of the 274 companies in the newly-launched SAMI (Socially Acceptable Market Investments) Halal Food Index.

These 95 companies represent over two-fifths or US$53 billion (RM161 billion) of the index's total market capitalisation of US$114 billion (RM345 billion).

Sime Darby Bhd, Nestle (M) Bhd and Genting Plantations Bhd are among the top companies on the index, Thomson Reuters global head of Islamic finance and OIC countries Rushdi Siddiqui said.

"This adds feather to Malaysia's Islamic finance hub and the convergence of both (Islamic finance and halal industry)," he told a news conference on the sidelines of World Halal Forum (WHF) 2011 here yesterday.

Also present were Deloitte Malaysia global leader of Islamic finance Daud Vicary Abdullah, WHF director (Malaysia/the UK) Abdalhamid Evans and AmIslamic Funds Management chief executive officer Datin Maznah Mahbob.(full story)

INDEX - Reuniting the 'twins separated at birth'

QUESTION: How did the idea of a halal food index come about?

A: I was looking to expand the bandwidth of Islamic investing, and saw the industry looking at Islamic hedge funds and other turbo-charged instruments which the "Muslim man in the street" can neither relate to nor access. The question to answer was: is there an asset class that can be explained in a 30-second elevator pitch, where the same "man" would understand immediately and want to invest in?( full story)

CAPITAL MARKETS - IILM likely to issue maiden commercial debt by Dec

THE International Islamic Liquidity Management Corp (IILM) is expected to issue its first commercial papers by the end of the year, said Bank Negara deputy governor Datuk Mohd Razif Abdul Kadir.

The short-term multi-currency instrument will help member central banks to manage liquidity in their Islamic finance markets. (full story)

BANKING - Bank Islam keen on Bangladesh market (Bank Muamalat)

Bank Islam Malaysia Bhd, the country's oldest Islamic lender, is likely to buy a stake in a bank in Bangladesh this year with a partner from the South Asian nation, sources said. 
 
The lender, which may be the first from Malaysia to enter that market, is said to be keen to tap the Islamic banking potential in the Muslim-majority state. (source)