Türkiye and Malaysia can and will work collectively in a time when the world is looking for extra path and readability, the chairperson of a Malaysian middle specializing in Islamic finance mentioned in an interview printed on Tuesday.
“Türkiye and Malaysia can and should work together in a time when the world is seeking more direction and clarity. We are in a phase where we must continue to build and strengthen our relations,” mentioned Tan Sri Azman Mokhtar, the chairperson of Malaysia International Islamic Financial Centre (MIFC) Leadership Council (MLC).
Speaking to Anadolu Agency (AA), Mokhtar emphasised Türkiye’s significance, each in its area and globally, explaining that they purpose to advance the robust financial, monetary, and funding ties between Türkiye and Malaysia.
“The Future of Islamic Finance: Türkiye-Malaysia Business Forum” was held just lately in cooperation with the Presidency’s Investment Office and MIFC MLC.
As a part of this system, greater than 20 senior monetary representatives working in areas corresponding to Islamic banking, capital markets and takaful (Islamic insurance coverage) got here to Türkiye, together with heads of regulatory and supervisory establishments.
The program centered on selling the Istanbul Financial Center (IFC), showcasing funding alternatives in Türkiye, strengthening public-private cooperation and evaluating funding prospects by way of one-on-one conferences.
Islamic finance, which has emerged lately as a substitute mannequin, continues to develop and is increasing its affect, particularly within the Gulf international locations, Southeast Asia and Africa.
Due to its promotion of monetary inclusion in creating international locations and its basis on moral ideas, Islamic finance is predicted to develop into extra widespread throughout broader geographies sooner or later. Türkiye stands out as a key a part of this rising pattern.
Legal reforms in participation finance, the institution of recent participation monetary establishments, and the purpose of turning Istanbul Financial Center into a world hub are all strengthening Türkiye’s Islamic finance ecosystem.
As of 2024, participation banking holds an 8.5% share within the nation’s banking sector, and that is anticipated to achieve double digits within the coming years.
Additionally, initiatives corresponding to participation-based insurance coverage, sukuk issuance (Islamic bonds) and the diversification of interest-free monetary merchandise help Türkiye’s purpose of turning into a regional Islamic finance middle.
In his remarks to AA, Mokhtar famous that commerce between the 2 international locations exceeds $5 billion (TL 200.87 billion), including, nevertheless, that there’s room to “grow this even further.”
“Our relationship is truly strong,” he mentioned.
Mokhtar defined that in Malaysia, Islamic finance constitutes virtually half of the banking system and two-thirds of the capital markets.
Highlighting Türkiye’s significance regionally and globally, Mokhtar added: “Malaysia at the moment holds the chairmanship of the Association of Southeast Asian Nations (ASEAN). Türkiye and Malaysia can and will work collectively in a time when the world is looking for extra path and readability. We are in a course of the place we should proceed to construct and strengthen our relationships.”
He additionally talked about witnessing the event of the Istanbul Financial Center intently and recalled opening an workplace in Istanbul throughout his time as CEO of Khazanah Nasional to put money into Türkiye and the area, a department that’s nonetheless energetic right this moment.
Moreover, he drew consideration to Türkiye’s regional affect and its function in participation finance.
“Türkiye is not just about Türkiye. It is a bridge economy for Central Asia, Africa, the Middle East and North Africa. There is serious potential in the participation finance,” he remarked.
“Much of this potential is already being realized. As Malaysia, we will continue to be part of this bridge, just as we are in our own region,” he added.
Mokhtar emphasised that the worldwide monetary world is trying to find path, with ongoing points and instability in financial coverage, local weather initiatives, and environmental, social and governance (ESG) efforts.
He mentioned that Islamic finance is rooted in social justice, and that they’ve reworked this custom into a contemporary framework.
Highlighting the system’s development potential, he added: “Islamic finance is growing much faster than the global financial system today, but in percentage terms, we are still relatively small. That means there is plenty of room for growth.”
Source: www.dailysabah.com