OIC Member States Must Foster Collaboration On Financial Ecosystems, Strengthen Digital Payment - Fahmi

From Kisho Kumari Sucedaram

ISTANBUL, Nov 4 (Bernama) -- The Organisation of Islamic Cooperation (OIC) member states must prioritise the sharing of best practices and foster robust collaboration among Islamic nations to develop modern, efficient and inclusive financial ecosystems, effectively phasing out outdated traditional methods.

Communications Minister Fahmi Fadzil said such efforts would be crucial in strengthening digital payment systems and ensuring that they meet the diverse needs of the global Muslim community while adhering to Islamic financial principles.

He said the OIC stands as the world’s second-largest intergovernmental organisation, holding immense potential for development.

“With vast natural resources, diverse human capital and a vast market spanning four continents, the OIC member states possess unparalleled potential for robust economic growth,” he said at the opening ceremony of the 40th session of the Standing Committee for Economic and Commercial Cooperation of the Organisation of the Islamic Cooperation (COMCEC) here today.

Fahmi delivered a statement on behalf of the Asian Group of OIC member states at COMCEC. He was among the three representatives to give the statement, including those from Qatar and Gambia.

This is the first time in 40 years that a Malaysian minister has attended COMCEC, the last being Tengku Razaleigh Hamzah in 1984.

He said Muslims now make up about 25 per cent of the global population, forming a market that has the potential to be a significant economic force.

“The rising affluence of Muslims worldwide holds vast potential in international trade and investment. To stay competitive in today’s global economy, we must seize the potential of digitalisation and innovation to drive connectivity and economic inclusion,” he emphasised.

Hence, Fahmi said, adopting digital technologies will definitely increase the competitiveness and productivity of a country and move it up the value chain.

In this regard, he said Malaysia applauds the policy recommendations put forth by the COMCEC Coordination Office (CCO) on the theme ‘Digital transformation of payment systems in OIC member countries’, as the ongoing transformation presents a unique blend of challenges and opportunities, particularly in ensuring that advancements align with shariah-compliant principles, reinforcing values and ensuring inclusivity within Islamic finance.

Turning to Malaysia's economic relationship with OIC member states, he said total trade has been increasing steadily over the years.

He said Malaysia’s total trade with OIC member states in 2023 amounted to US$67.17 billion (RM306.49 billion), which represents 11.6 per cent of Malaysia’s trade in goods with the world under the leadership of Prime Minister Datuk Seri Anwar Ibrahim.

This positive momentum continues in 2024, with total trade of US$52.39 billion (RM242.45 billion) recorded for the period of January to September 2024, representing a 9.1 per cent increase compared to US$49.24 billion (RM222.29 billion) for the corresponding period in 2023.

Fahmi also noted that Malaysia stands resolute in supporting OIC member states’ aspirations to increase intra-OIC trade to 25 per cent by 2025, as outlined in the OIC-2025: Programme of Action.

“We firmly believe that the full implementation of the Trade Preferential System of the OIC (TPS-OIC), coupled with the resilience of the OIC member countries' economies, will make it possible to meet the target,” he said.

He also stressed that Malaysia would continue to actively participate in OIC’s activities and initiatives to demonstrate the country’s unwavering support for the development of the Muslim ummah.

“Malaysia believes that the increasing global demand for halal products, particularly food and manufactured goods, will serve as a significant catalyst for intra-OIC trade growth,” he said.

He added that the recently concluded 20th MIHAS (Malaysia International Halal Showcase) in Kuala Lumpur drew over 43,000 trade visitors and recorded a trade value nearing US$1 billion (RM4.3 billion). 

“Malaysia aims to build on this momentum with the inaugural MIHAS@Dubai, scheduled to be held from Nov 18 to 20, 2024 at the Dubai World Trade Centre. 

“We warmly welcome all OIC member states to participate in this event,” he said. 

“I wish to reaffirm Malaysia's steadfast commitment to advancing free and fair trade, fostering growth and prosperity across the OIC fraternity,” he added.

Fahmi is on a three-day working visit to Turkiye from Nov 3 to Nov 5 to attend the COMCEC in Istanbul.

-- BERNAMA