Govt Allocates RM100 Mln Matching Fund To Spur Innovation In Islamic Financing

KUALA LUMPUR, Oct 18 (Bernama) -- The government has allocated a RM100 million matching fund to spur innovation in Islamic financing based on Islamic values so that it no longer depends on Shariah-compliant products similar to conventional ones. 

Prime Minister Datuk Seri Anwar Ibrahim said that among the pioneering financing products are those based on the principle of musharakah, which involves fair sharing of risks and profits. 

"This facility is focused on the climate finance projects, including food security projects, and implemented with matching funds from Islamic banking institutions and private investors," he said when tabling Budget 2025 in the Dewan Rakyat today. 

Anwar who is also Finance Minister said the Islamic financial sector needs to be propelled to be more creative. 

“To boost research in the field of Islamic economics, a total of RM10 million has been allocated to support joint efforts between the International Islamic University of Malaysia and INCEIF University to further increase understanding and application of the universal values ​​of Islamic ​​​​economics,” he said. 

He said the research and development of academic programmes will continue to expand the application of Islamic economics in current policymaking in line with the principle of maqasid shariah that is fair, inclusive, and sustainable for shared prosperity. 

In addition, the Prime Minister said almost all countries recognise Malaysia’s halal certification. 

Hence, he said that the joint efforts of the Department of Islamic Development Malaysia (JAKIM), Halal Development Corporation Bhd and Malaysia External Trade Development Corporation (MATRADE) should be augmented to strengthen the country's halal industry and support local halal companies. 

"To speed up the issuance of halal certificates, JAKIM’s halal auditors will be increased by 100. The MYeHALAL system will also be upgraded to centralise 20 government agencies and 100 foreign halal certification bodies under one platform. 

"Bank Pembangunan Malaysia Bhd and SME Bank will offer special financing to halal micro, small and medium enterprises (MSMEs) with available funds of almost RM600 million," he said. 

Anwar said Syarikat Jaminan Pembiayaan Perniagaan Bhd is also open to guaranteeing up to 80 per cent of halal SME financing with a guaranteed value of up to RM1 billion. 

“MATRADE is tasked with driving the capacity development of more halal companies to be more competitive with an allocation of RM20 million,” he said. 

-- BERNAMA