BANK ISLAM, WAQAF AN-NUR INK COLLABORATION TO EMPOWER ITEKAD MICRO-ENTREPRENEURS

JOHOR BAHRU, July 2 (Bernama) -- Bank Islam Malaysia Bhd and Waqaf An-Nur Corporation (Waqaf An-Nur) have signed a collaboration agreement to expand support for micro-entrepreneurs in the country.

Bank Islam group chief executive Datuk Mohd Muazzam Mohamed said the strategic pact would see Waqaf An-Nur channel contributions from corporate waqaf worth RM120,000 to its charity public funding platform Sadaqa House.

He said the contributions would be revolving funds to offeriTEKAD micro-financing to micro-entrepreneurs, assisting them in generating sustainable income and financial resilience to face challenges.

"The injection of funds from Waqaf An-Nur into Bank Islam's Islamic finance mode allows for the opportunity to increase the mobility and capacity of micro-entrepreneurs to expand their businesses with iTEKAD financing. This can expand financial inclusion for micro-entrepreneurs from communities lacking access to banking services.

"The revolving fund model will enable support for more micro-entrepreneurs compared to providing business grants. Entrepreneurs that have been identified can receive iTEKAD BangKIT micro-financing of up to RM20,000 at zero per cent interest (qardhul hasan).

"This fund can be utilised as working capital and expenditure for micro-enterprises participating in the iTEKAD programme," he told reporters at the collaboration agreement's signing ceremony here today.

Waqaf An-Nur chief operating officer Bahrin Bakri, Waqaf An-Nur ummah development division general manager Zamri Norani and Bank Islam group chief social finance officer Mohd Nazri Chik were also present at the signing ceremony.

Mohd Muazzam elaborated that the role of Sadaqa House as Bank Islam's social finance driver has been acknowledged at the global level, and it drives the bank's social finance initiatives, including the iTEKAD BangKIT and iTEKAD Maju micro-financing programmes.

He said these programmes provide financing, grants, and continuous mentoring to participants to ensure they can generate sustainable incomes.

"The aim of iTEKAD BangKIT and iTEKAD Maju is to empower the asnaf and B40 entrepreneur communities, highlighting Bank Islam's dedication towards inclusive economic development. To date, more than 1,200 micro-entrepreneurs have benefited from the disbursement of more than RM25 million since the programmes were introduced in 2020.

"Bank Islam and Waqaf An-Nur have the same goal to develop the underprivileged segment of society through Islamic social finance instruments. We thank Waqaf An-Nur and all contributors for this collaboration," he added.

-- BERNAMA