Embargo : For immediate release
10 Sep 2024
The MIFC-UK Business Forum today brought together key financial stakeholders from Malaysia and the UK in London to discuss the opportunities and challenges in promoting green investments with wider application of Islamic finance solutions. The Forum aims to strengthen the Malaysia-UK partnership in fostering cross-border investments, particularly in the green sector.
Bank Negara Malaysia (BNM) and the MIFC Leadership Council (MLC) co-organised the Forum with the Islamic Finance Council United Kingdom (UKIFC), TheCityUK, and UK Islamic Finance – Halal Economy Hybrid Group as supporting partners.
The collaboration is envisioned to be mutually reinforcing for the two countries. This can be achieved by leveraging both Malaysia as the global gateway for Islamic finance opportunities for Asia and the Organisation of Islamic Cooperation (OIC) markets, and the UK as a global financial centre. The Forum also served as a catalyst to advance the partnership between MLC and UKIFC to implement the Memorandum of Cooperation. This Memorandum was signed at the Global Forum on Islamic Economics and Finance (GFIEF) in May 2024.
His Royal Highness Sultan Nazrin Muizzuddin Shah, the Royal Patron of Malaysia’s Islamic Finance initiative said in His Royal Highness’s Keynote Address, “This is where Islamic finance offers a potential solution. Rooted in principles of ethical practices, fairness, and equitable risk-sharing, it provides a framework that naturally aligns with sustainability and presents diverse funding options, including blended and social finance. It is well-positioned to address funding gaps that impede global progress and can serve as a tool for channelling resources where they are needed most.”
In building a sustainable economic landscape, Malaysia’s funding requirement for green investment is expected to reach approximately RM1.2 trillion to RM1.3 trillion by 2050.[1] Islamic financial instruments can support these funding needs. Through the business roundtable, forum participants from both Malaysia and the UK advocated for sustained collaboration towards:
- Promoting industry collaboration in cross-border trade and financing activities, including green investments, private equity and funding infrastructure projects;
- Maximising the potential of innovative Islamic finance instruments in supporting green transition; and
- Fostering partnership in capacity building, research and knowledge exchange on Islamic finance for mutual development.
The Forum concluded with a call for partnerships to enhance Islamic finance services in the UK and the importance of leveraging technology for banking solutions, aiming for impactful investments towards a sustainable future.
Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour said, “Malaysia is taking decisive steps towards achieving our Net Zero target in 2050 guided by strategic frameworks such as the National Energy Transition Roadmap, the Hydrogen Economy and Technology Roadmap, and the New Industrial Master Plan. With its underlying intrinsic values, Islamic finance is poised to address the funding needs and support our vision of economic growth that is balanced, sustainable and inclusive.”
MLC Chairman Tan Sri Azman Mokhtar said, “Malaysia’s leadership in Islamic finance, coupled with the UK’s robust global financial presence, forms a dynamic alliance ready to tackle significant global challenges. At MLC, we are committed to enhancing this partnership through innovative Islamic financial solutions that are essential for sustainable, long-term economic growth.”
He added that through its collaboration with UKIFC, MLC aims to develop substantial business connections that bolster its international objectives, highlighting Islamic finance’s vital role in fostering economic growth and bridging diverse markets.
The half-day event was attended by more than 140 participants, in particular government officials, financial sector regulators, fund managers, global market investors, international investment banks and other business practitioners.
Bank Negara Malaysia
MIFC Leadership Council
10 September 2024