| |
| |
![]() |
| |
|
| |
|
| |
|
SINGAPORE : Singapore on Monday stepped up efforts to grow its Islamic financial services market as the city-state expands the range of banking products compliant with Sharia law.
With immediate effect, banks in Singapore can now offer Murabaha investment products, a type of financing that requires the bank to purchase goods on behalf of the customer before selling them at a mark-up, the central bank
said.
"We hope this will further expand the range of Islamic products for both private and institutional Islamic asset management in Singapore and the region," said Heng Swee Keat, managing director of the Monetary Authority of
Singapore (MAS).
Last September, the MAS reviewed its policy to allow banks to offer Murahaba financing. Previously banks were barred from offering this type of financial service as it was regarded as a non-financial activity.
"We believe that Singapore, as an international financial centre, can and should have a full suite of Islamic financial products that can meet the needs of banks and investors," Heng said in a speech at an Islamic finance forum.
"The exemption is granted in recognition of the product's fundamental characteristics as a financial product." he said.
Demand for Islamic financing is growing in the Middle East as well as countries with large Muslim populations, including those in Asia, Heng said, adding Singapore wants to grow its share of the market.
A recent Moody's report estimated there are 300 Islamic financial institutions with more than 250 billion US dollars worth of assets growing at 10-15 percent a year, he said.
"The financial community in Singapore is excited by the recent growth and developments in Islamic banking and finance," Heng said.
"Our current strengths in conventional financing can serve as a base for the growth of Islamic finance, especially in the wholesale and capital markets," he said.
Largely Muslim Malaysia is the current Asian leader in Islamic banking after introducing services in 1983.
- AFP /ct
|
