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Malaysia: Islamic Banking Should Be Most Important Agenda For Government

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Points of Essence:

  • The Government is urged to tap Islamic banking as an energy capacity tool in future. With the current pool of the talents in the area, the agenda will be seamlessly carried out.  But it is cautioned against the advances of other countries in promoting Islamic finance which may overshadow the Government’s existing accomplishments. Bernama has the report.

KUALA LUMPUR, March 27 (Bernama) — The government is urged to make Islamic banking as one of the most important agendas in efforts to build energy capacity in future.

The representative from the Pahang Umno Liaison Body, Amiruddin Mohd Said, who made the proposal when tabling the motion on economy at the Umno general assembly 2008, here today, said Malaysia had the expertise needed to realise the agenda.
“Malaysia has sent many students abroad to countries such as Egypt, Jordan, Syria and Morocco in the fields of theology, economy and business management,” he said.

“Unfortunately, when the conventional financial system collapsed, Malaysia was still not ready to export Islamic banking products to West Asia, China and India,” he said.

In fact, he said, Malaysia should be more careful with Singapore, Hong Kong and the United Kingdom because these countries were also promoting Islamic banking within and outside their countries.

“In this aspect, it is proposed that cooperation between the academics, the business and government sectors should be formed and guided by the government.

“Umno is even more sad to see that financial institutions owned by non-Muslims such as the Public Bank and Hong Leong Bank appear to be more progressive in promoting Islamic banking products. What has happened to Maybank, CIMB and Bank Islam?” he asked.

Amiruddin also proposed that the Implementation Technical Committee for the Stimulus Package chaired by the Secretary-General of the Finance Ministry be revamped and replaced with a committee such as the National Economic Action Council (NEAC) chaired by the Prime Minister.

“Many feel that our implementation is too slow. For the First Stimulus Package, only RM1 billion had been spent to date. If RM1 billion is spent within six months, how long will it take to spend RM7 billion? This is only for the first package. How about the second package?” he said.

The First Stimulus Package was announced in Novemeber last year while the second package announced earlier this month amounted to RM60 billion.

Amiruddin also asked government-linked companies (GLCs) especially Petronas, Telekom and Tenaga Nasional to give priority to Bumiputeras in awarding contracts.

Meanwhile the Federal Territory Umno representative Datuk Raja Nong Chik Raja Zainal Abidin urged the government to review the racial monopoly in the manufacturing, marketing and raw material sectors.

At the same time, he said the government must ensure that the policy of opening up opportunities to non-Malay companies in economic projects could contribute to the development of the Malays.

“How many Malay vendors are involved? How many supplying and service contracts are given out?” he asked when debating the motion on economy at the general assembly.

He also asked how many Malays had benefited from job opportunities in large corporations which had been given economic projects.

In this context, Raja Nong Chik proposed that real estate ownership, capital capacity and Malay equity be increased.

Meanwhile, Wanita Umno representative Datuk Rosni Zahari suggested that the government create an economic action plan specifically for women and set up a women development unit in related ministries.

Rosni also called on the government to do away with the need to provide collaterals for loans below RM200,000 as not all women entrepreneurs were able to fulfill the collateral requirement.

Source: BERNAMA

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Written by Suapi Shaffaii

March 28, 2009 at 6:43 pm

Posted in General Issue

Tagged with ,

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