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As a global pioneer in Islamic finance, Malaysia aims to harness the growth of Islamic finance and financial technology (FinTech) to enhance financial inclusion and open up access to financial services for the underserved individuals as well as micro, small and medium enterprises (MSMEs).
Over 1.7 billion adults or one-third of the world’s adult population are estimated to not have access to formal financial services – many of them in developing countries. According to the Global Findex Database, 40 out of the 48 member countries in the Organisation of Islamic Cooperation (OIC) have formal account penetration rates that are lower than the world average of 50 percent.
This issue, along with elements required for the sustainable use of Islamic finance to address financial inclusion, were discussed at a conference today jointly organised by the Securities Commission Malaysia (SC), World Bank Group Global Knowledge and Research Hub in Malaysia, and the International Organisation of Securities Commissions (IOSCO) Asia Pacific Hub also located in Malaysia.
Themed “Islamic Finance: A Catalyst for Financial Inclusion”, the annual conference gathered over 300 development practitioners, policy makers, regulators and experts to explore policy, regulatory and institutional challenges and opportunities. The conference featured discussions on the role of Islamic finance including Islamic social finance, such as waqf and zakat, in enabling greater access to financial services to enhance social well-being as well as drive economic activities. The use of technology to support Islamic finance in facilitating greater inclusion was also deliberated.
Datuk Syed Zaid Albar, Chairman of the SC said, “Islamic products and services for financial inclusion hold the promise for a shared and better future. Therefore, increased digitisation will certainly reduce costs and enhance speed, convenience and appeal. In this regard, the capital market provides entrepreneurs and MSMEs both conventional and Shariah-compliant avenues to access alternative sources of financing. Equity crowdfunding and peer-to-peer financing platforms, as well as venture capital and private equity, are available to meet their needs at different stages of their businesses.”
Dr. Firas Raad, World Bank Group Representative to Malaysia and Country Manager said, “Islamic finance can play a role in addressing the high levels of poverty in the OIC countries, which account for over 40% of those living on less than USD1.25 a day and is home to one-third of the global population living in extreme poverty, defined as those living on less than USD1.90 per day.”
SECURITIES COMMISSION MALAYSIA WORLD BANK GROUP IOSCO ASIA PACIFIC HUB
About Securities Commission Malaysia
Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about SC is available on its website at www.sc.com.my. Follow SC on twitter at @SecComMy for more updates.
Media contact:
Delyana Nordin
Corporate Affairs Department
Mobile :+60122072787
Office : +603 62048265
e-mail : delyanan@seccom.com.my
About World Bank Group in Malaysia
The World Bank Group Global Knowledge and Research Hub in Malaysia is the first of its kind, serving both as a field presence in Malaysia and as a global knowledge and research hub. The new hub focuses on sharing Malaysia's people-centered development expertise and creating new innovative policy research on local, regional and global issues.
Joshua Foong
Communications Officer
Mobile :+60166901822
Office : +603 22634952
e-mail : jfoong@worldbank.org
About IOSCO Asia Pacific Hub
Operationalised in mid-2017, the International Organisation of Securities Commissions (IOSCO) Asia Pacific Hub, located in Kuala Lumpur is the first regional hub of IOSCO established outside of its headquarters in Madrid. Hosted by the Securities Commission Malaysia, the IOSCO Asia Pacific Hub plays a key role in regulatory capacity building, particularly in the region. Through its initiatives, the Asia Pacific Hub facilitates greater cross border regulatory cooperation and promotes the transfer of knowledge, expertise and best practices from across IOSCO’s wide membership.
By way of background, the IOSCO is the leading international body of capital market regulators and is recognised as the global standard setter for securities regulation. Established in 1983, IOSCO members from more than 115 jurisdictions, collectively regulate more than 95% of securities markets worldwide.
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