Event Summary (KLCIF2013) - KL Conference on Islamic Finance 2013

KL Conference on Islamic Finance 2013


Date    : 27-28 August 2013

Venue : Grand Seasons Hotel, Kuala Lumpur - Malaysia

“An international gathering of practitioners, scholars and experts to discuss and share their knowledge, expertise and experience on the principles, instruments and issues related to Islamic finance, to be held at the world’s leading Islamic financial centre…Kuala Lumpur.”


Event site : www.islamic-finance-conference.net

KEY FOCUS/TOPICS:

- Product development and Implementation of Islamic financial products

- Ensuring Shariah compliance in Islamic financial instruments

- Sukuk: development, issues and challenges
- Islamic gold account: a golden opportunity

- Islamic mutual funds (unit trusts): factors to consider in making an investment
- The rise of Islamic wealth management in Islamic finance industry
- Islamic financial planning: success in both worlds
- Takaful: innovation and solutions
- Enterprise risk management for Islamic banks
- Enterprise risk management for takaful operators
- Accounting and auditing
- Human capital development in Islamic finance industry
- Legal issues and challenges in Islamic finance
- Dispute settlement in Islamic finance: issue and solutions
- Islamic ethics in financial services industry
- Corporate governance for Islamic finance industry

SPEAKERS:

Speakers are selected from Islamic banks, takaful operators, academicians, legal practitioners, consultants, regulatory bodies.

Among the speakers are:

Professor Dr. Malik Muhammad Mahmud Al-Awan
Chairman/CEO, Global Studies Institute, USA

Asst. Professor Dr. Aznan Hasan
Member, Shariah Advisory Committee, Securities Commission Malaysia
Member, Shariah Advisory Committee, Bank Negara Malaysia

Halim Mohamed Dzin
CEO, Sedania As Salam Capital (As Sidq)

Mahdzir Othman
CEO, i-VCAP Management Sdn Bhd 

Hassan Omar Ahmed
CEO, Elit Consultancy

Nasser Yassin
Takaful Consultant, KTC Consultant

Ahmad Sanusi Husain
CEO & Chief Consultant, Alfalah Consulting


Ahmad Lutfi Abdull Mutalip
Partner, Azmi & Associates (Advocates & Solicitors)

WHO SHOULD  ATTEND:

- Islamic bankers/bankers
- Takaful/insurance operators
- Regulators
- Head of governmental departments
- Financial planners/wealth advisors

- Financial consultants

- Legal practitioners (lawyers)

- Academicians (lecturers)

- Entrepreneurs (businessmen/importers/exporters etc)

- Other professionals 

REGISTRATION:

Early Bird Fee: 

Registration with payment by 26 July 2013

Malaysian   :  RM1,500

International  :  USD600

Normal Fee:

Registration with payment after 26 July 2013

Malaysian  :  RM1,800

International  :  USD700

Special fee for Malaysian university lecturers :  RM1,000 (group discount not applicable)

Fee is inclusive of lunch, refreshments and seminar package only.

Group Discount:

Enjoy 20% discount for third and subsequent delegates registered from the same organisation and the same billing source.

DOWNLOAD BROCHURE
(will be uploaded soon...for now you may request for tentative program or you will be given a tentative program when register online)

REGISTER ONLINE

ORGANISER

VENUE

Grand Seasons Hotel, Kuala Lumpur - Malaysia

MEDIA PARTNERS

Kuala Lumpur

Kuala Lumpur

Lahore

Dubai

London

Event site : www.islamic-finance-conference.net

Malaysia: Bank Muamalat posts record pre-tax profit

KUALA LUMPUR: Bank Muamalat Malaysia Bhd (BMMB) posted a pre-tax profit of RM236mil for the financial year ended March 31, up 129% from a year ago and a historical high in its more than 13 years of operation.

It said in a statement the stellar performance was underpinned by strong financing growth and low credit cost arising from improved asset quality coupled with its concerted efforts in capturing fee-based income.

Total revenue increased 11.8% to hit almost RM1bil in the period under review. The increase was supported by a 10.4% growth in financing income and hibah, growing to RM904.6mil from RM819.3mil.

Similarly, fee and other income improved to RM94.7mil, a notable year-on-year growth of 27.5%, derived from the bank’s focus on expanding its Ar-Rahnu business and wealth management services, in addition to its increased corporate advisory activities.

CEO Datuk Mohd Redza Shah Abdul Wahid said it was a record year for the bank which had achieved a new milestone in its financial results.

“More importantly, we have closed the year with a healthier balance sheet. To keep this momentum going, we will continue to place great emphasis on strengthening our balance sheet to position the bank towards long-term sustainable growth,” he said in a statement yesterday.

The bank registered a net write-back of RM20.2mil for its financial assets, reversing the net provision of RM63mil made in the previous financial year.

Asset quality as measured by gross impairment ratio has improved to 2.5%, almost half of 4.7% recorded in the previous financial year.

These improvements are reflective of the bank’s continuous effort on prudent recovery, credit risk management initiatives taken and better quality financing base expansion.

Gross financing grew to RM10.6bil fuelled by a 30.2% growth in consumer financing over the preceding year. Consumer financing contributed 66% of the overall financing portfolio. With the growth in financing, the bank closed its financial year with total assets of RM21.1bil.

Total deposits grew to RM18.7bil with a growth of 17.3% in savings deposits from the expanded customer base in the period under review.

The bank has proposed a first and final dividend of 26% to its shareholders for the financial year ended March 31, 2013, subject to its shareholders’ approval.

(The Star Online / 13 June 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Blazing the trail for Islamic Banking

Islamic banking has taken the world of finance by storm setting new benchmarks for transparent, ethical, and accountable banking practices, and one of the most influential voices amongst the leaders who have championed the progress of Shariah compliant banking is, without a doubt, Afaq Khan, CEO of Standard Chartered Saadiq, the international Islamic banking business of Standard Chartered Bank. 

On Wednesday the 26th of June, the Capital Club, Dubai’s premier private business Club and member of the Enshaa group of companies, will be hosting an intimate evening with Mr Khan who will be sharing insights from his journey to the top of his field and a look at what the future of Islamic Banking will be. Moderated by Shane Phllips, Presenter of Dubai Eye's Eye On Careers and Host of Zee TVs show Top Guns, the evening marks the second in the Capital Club’s series of ‘The Path To Success’ talks that aim to give the Club’s Members and their guests a unique glimpse into what it takes to become a successful CEO. 

With over 20 years of banking experience, Mr Khan is actively involved in helping governments develop Islamic banking regulations. His in-depth banking experience has led him to a number of industry “firsts” including the inaugural USD denominated sukuk issued by the Republic of Indonesia; the first sovereign sukuk issued in AED denomination by the Emirate of Ras Al-Khaimah; as well as the first local currency sukuk programmes issued by the Government of Pakistan and the Monetary Authority of Singapore. 

Having joined Standard Chartered Bank in 2003 with the mandate to launch the Islamic business division for the Bank, Mr Khan has been responsible for the strategic build up of Standard Chartered’s international Islamic banking business covering retail, corporate and investment banking, culminating in the launch of the 'Saadiq' brand for Islamic banking at Standard Chartered Bank in 2007. Under his leadership, Standard Chartered Saadiq has received numerous awards, including being voted “Best International Islamic Bank” in 2009 by Euromoney and “Best Islamic Investment Bank” by the Asset Triple A Awards for Islamic Finance in 2009. 

(Albawaba Business / 19 June 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia: Spotlight on Islamic finance in Budget consultation meeting

KUALA LUMPUR: The 2014 Budget consultation meeting on Tuesday saw Islamic finance featuring prominently in the discussions.

Finance Ministry Secretary General Tan Sri Dr Mohd Irwan Siregar Abdullah said robust growth in the global sukuk market, led by Malaysia in recent years, had made it an important sector for the government.

“We talked about agro sukuk to help companies involved in farming activities raise capital to finance their businesses, alongside other forms of sukuk.

“We are also looking at other ways to introduce new products in the sukuk market in the coming years.

“This is to enable Malaysia to continue being the industry leader,” he told Bernama on the sidelines of the 4th World Takaful Conference : Family Takaful Summit Malaysia, yesterday.

Mohd Irwan said Malaysia’s Islamic capital market had contributed significantly to the development of the global Islamic capital market.

At the same time, he added, non-Muslim countries like Japan and Korea have been attracted to learn from Malaysia on how to introduce Islamic financing to raise their own capital.

The sukuk segment increased its market share of the overall bond market from 14.5 per cent in 2000 to 47.1 per cent as at the end of 2012.

Malaysia continued to be the world largest sukuk market with 69 per cent of the US$280 billion total global sukuk outstanding as at December 2012.

Earlier, in his speech, Mohd Irwan said demand for Islamic products was increasing tremendously on the back of the global financial turmoil, especially in European countries.

He also said that due to the better offers by Islamic financial products compared to the conventional in the global economy, this sector will be among the main points of discussion at the 4th Global Entrepreneurship Summit 2013 to be held in Kuala Lumpur, in October.

The US President Barack Obama, is expected to make a presentation at the event, on his maiden visit to Malaysia.

(Borneo Post Online / 20 June 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Global takaful to hit $20bn despite challenges

JEDDAH – Global takaful business will reach $20 billion by 2017, a new report by Deloitte titled “The Global Takaful Insurance Market: Charting the Road to Mass Markets” revealed.

The report said the GCC region contributes more than 62 percent of the takaful gross premiums and expanded by 17 percent to $5.7 billion in 2010, mainly driven by Saudi Arabia.

It urged more consistency of regulatory frameworks in the takaful market and development of new business models as these are some of the factors that would affect the industry in the future.

According to the report, the biggest challenge being faced by the industry in the Middle East region is the “Arab Spring syndrome” which has resulted in the reluctance of corporates to invest for expansion and to hire. In addition, growth rates of takaful penetration are slowing due to a lack of customer education and inadequate product awareness programs. This has been further hindered by a lack of clear strategies from takaful providers, and lack of research and development in product innovation and marketability.

In the attempts to address the issues, the report suggests that practitioners as well as regulators need to work together to ensure that the industry specific standards ?nd their way in a real, practical sense. 

It presents a model for positioning of new takaful solutions which is largely driven by core influences, which include governance competence, risk management function, Shariah compliance, product governance and process, strategic target market and sales and marketing capabilities. 

Dr. Hatim El Tahir, Director of the Islamic Finance Knowledge Center of Deloitte Middle East, noted that “heightened focus on governance, fiduciary responsibility, risk management and accountability are direct consequences of the global financial crisis and will likely present takaful with challenging practice and regulatory issues during the next five years.”

Ten key challenges were identified that would significantly impact the future of the takaful industry. These are grouped into five industry disciplines which are:

Governance and regulatory compliance: the report finds that more consistency of regulatory frameworks is needed, and optimizing capital adequacy through consolidation will achieve growth and sound corporate structures.

Risk management and internal controls: Making risk-based business a priority, unified with takaful operators' strategic planning, and improving risk and Shariah disclosures and governance.

Operational and Business Excellence: There is a need for new business models to accommodate wider niche markets and improved technology capabilities to achieve cost efficiency and productivity.

Product governance and strategy: Improving product governance and product development processes, and placing emphasis on target markets, sales and distribution.

Capacity building: talent and leadership development: Switching emphasis to internal development to build specialized knowledge and refocusing on competency-based training and leadership programs. 

In 2010, the Far East region recorded the highest growth rate of 32 percent on the back of $1.95 billion in contributions, while the GCC, led by the Kingdom of Saudi Arabia (KSA), maintained the largest share of contributions, growing a further 17 percent to $5.7 billion. 

The GCC region accounted for almost 40 percent of the total takaful business with South East Asia coming a distant second with an 11.8 percent share in 2010, based on figures compiled through inputs given by the various takaful operators around the world.  The sustainable growth of Islamic finance in many parts of the world and in particular MENA and SEA will stimulate additional growth in the takaful sector as finance and insurance services are intertwined. 

The heightened focus on governance, fiduciary responsibility, risk management and accountability are direct consequences of the global financial crisis and will likely resent takaful with challenging practice and regulatory issues during the next five years. 

Achieving growth in the takaful insurance sector and breaking through into the mainstream might be easier said than done. This is especially true because the takaful industry faces enormous challenges to achieve growth and build mass coverage globally. Yet, the growing industry has a number of opportunities to set the stage for both short- and long-term growth.

(Saudi Gazette / 19 June 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Horizons for Islamic banking highlighted

SALALAH — The Islamic Banking, promising finance horizons seminar was held at Oman Chamber of Commerce and Industry (OCCI) in the Governorate of Dhofar yesterday. Abdullah bin Salim al Rowas, Chairman of OCCI branch in the Governorate of Dhofar, delivered a speech where he commended the efforts of Al Roya newspaper and Hatim bin Hamad al Taie, GM and Editor-In-Chief, to organise this seminar that aim at enhancing public awareness of Islamic banking.

The seminar included four themes namely Islamic banking products, Islamic banking as a finance arm for development and production projects, the role of Islamic banking in financing MSEs and success factors for Islamic banking in the Sultanate. The seminar comes within the awareness campaign organised by Al Roya in collaboration with the CBO with participation by a number of major banks, Islamic banking windows, bankers and experts in the Sultanate.

It gave participants the opportunity to gain first-hand information on the importance of the industry to the financial landscape of Oman. It included in-depth insights into the Islamic banking tools available to realise growth in the economy.

(Oman Daily Observer / 19 June 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Uniting Islamic finance and halal at conferences

(MENAFN - Khaleej Times) Conferences provide an insight on the road ahead for industries, products, innovations, and services. The speakers are assumed to know more than most on the other side of the podium.

One of the interesting developments in the Islamic finance conferencing arena has been the introduction of topical issues from the 2.1 trillion halal industry. Is it because there is no 'new new' in Islamic finance or the realisation that Islamic finance needs to build bridges to new areas linked to the real economy or both?

Halal, depositors and alternatives

There is a realisation and recognition that, at one level, halal is demand based, hence, one needs to eat, before one invests in, say, mutual fund or bank/sukuk finance a tower. Thus, halal, being a consumer non-cyclical, is actually less volatile (or more stable) than Islamic finance's traditional area of finance: real estate.

Furthermore, as there are more Muslim depositors than investors (debt culture), there are more participants in halal than in Islamic finance (food over finance). To wit, Islamic finance participants will be almost always be consumers of halal foods, but halal food consumers will not always be Islamic finance participants. The reasons may be due to lack of availability of Islamic finance, especially at retail levels in non-Muslim countries, excessive costs or lower returns, inferior customer service, lack of range of products, etc.

For Muslims, the alternative to halal foods is the acceptable kosher. For example, in the US, Muslims consume more kosher products than Jews, as there are more than 86 kosher products for every one halal product. Thus, halal and kosher are a good example of building bridges of inter-faith dialogue.

The alternative to Islamic finance is the conventional and ethical (which has elements of interest) or cash economy. Obviously, not many ideal choices, but many scholars have invoked 'law of necessity' for allowing Muslims to participate in interest based finance as an Islamic alternative is unable and would cause undue hardship. Furthermore, there are a number of Christian and Catholic funds available for investing, but Shariah scholars have not approved them for investment for Islamic investors.

Thus, the 'acid of purity or authenticity' may be articulated by following observation:

If there are pork traces of DNA found in halal food products and known by the consumer, the consumption of the product would be prohibited. Only caveat is when consumption of pork would save a person from starvation to death. In Islamic finance, the Shariah scholars have allowed 'minor' amount of interest and impermissible income (which must be purified by way of charitable donation) and acceptable amount of conventional debt (screening companies for compliance for investment purposes) as preconditions for participation. Thus, halal can be said to be Shariah based and today's Islamic finance as Shariah compliant. [Capital structure of halal food companies is conversation for another day].

Conferences

Islamic finance conferences are about awareness, education and networking, but they are commercial undertaking with profit motives. The injection of halal at such conferences is actually a paradigm shift, as Islamic finance has traditionally ignored its much larger brethren: halal. It should be noted that at halal conferences/events, like World Halal Forum, Islamic finance topics are commonplace and, even, Islamic banks sponsor such events.

The time has arrived to present the halal value proposition at Islamic finance events. Thus, I was requested to present on halal at major events like the Kuala Lumpur Islamic Finance Forum (KLIFF) 2012, World Islamic Banking Conference (WIBC) Asia 2013 in Singapore, and at the Brunei Islamic Investment Summit (BIIS) 2013.

Furthermore, after His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, made the historical announcement in early 2013, about Dubai's ambition for an Islamic economy, it has institutions, consultants, and conference organisers scuttling to put together a 'blue print' of the Islamic economy, including halal.

Halal conversation

The conversation on halal must continue to evolve from the academic, certification and research to the practical, immediate and impactful. Put differently, the monetisation of halal needs to entice the Islamic money, as the riba based money has financed halal. For example, one only needs to examine at the balance sheet of, say, publicly listed halal food companies in the SAMI Halal food index for Shariah compliance (financial ratios, especially on debt), and realise quite a few fail the screening process.

(Menafn.Com / 18 June 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com