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DMDI In Final Stages Of Setting Up Finance House

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Points of Essence:

  • The Kuwait Finance House has inspired the establishment of DMDI in Malaysia. The finance institution was mooted at the recommendation by BNM, the country’s central bank.
  • At this stage, it was not clear about the operating framework of DMDI and neither on the benefits it would offer to its members organisations.

By: Ramjit

ACEH, Aug 22 (Bernama) — Dunia Melayu Dunia Islam (DMDI) will be setting up a finance house, DMDI Finance House, in place of an earlier proposal to set up a bank, its president Datuk Seri Mohd Ali Rustam said.

He said the setting up of the finance house was suggested by Bank Negara Malaysia (BNM) and that it was currently in the final stages of establishment.

“BNM had given its view that it would be better to form DMDI Finance House in the mould of Kuwait Finance House in Kuwait,” he told reporters after chairing the DMDI supreme council meeting in Banda Aceh here Friday.

The proposal to set up Bank DMDI was made at the DMDI Convention held in Melaka last year. Mohd Ali who is also Melaka Chief Minister said that the DMDI’s Secretariat had informed Prime Minister Datuk Seri Abdullah Ahmad Badawi of the plan to set up the finance house.

“The Prime Minister had agreed to its formation and he had also agreed to the appointment of Tan Sri Dr Syed Jalaludin Syed Salim who is currently Bank Rakyat chairman as the chairman of DMDI Finance House,” he said.

He said DMDI had one more discussion with BNM before a concrete framework is put in place for the establishment of DMDI Finance House.

One way DMDI Finance House will garner assets and financing will be to bring in the assets of member countries such as agricultural land or land with mineral resources.

“After that we will issue bonds,” he said.

DMDI Finance House will be managed by experts in the field, he said.

This will be an important project for DMDI after having been in operations the last eight years, and there has been further understanding and determination among member countries, he said

He said DMDI was also involved in the halal industry.

“I see a great potential if all the DMDI members united and made optimum use of their resources,” he said.

The organisation has 13 members, namely Malaysia, Indonesia, Brunei, Singapore, Philippines, Thailand, Cambodia, Sri Lanka, Madagaskar, South Africa, Australia, United Kingdom and China.



Written by Suapi Shaffaii

August 22, 2008 at 9:29 am

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