Bank Negara Malaysia recently held a seminar on Islamic Finance in Istanbul, Turkey, in support of the Malaysia International Islamic Financial Centre (MIFC) initiative. Tun Dr Mahathir Mohamad, former Prime Minister of Malaysia delivered his Special Keynote Address at the event. The seminar was held from 28-29 September 2011.

Themed "Malaysia and Turkey: The New Silk Route in Islamic Finance - Strategies for Collaboration, Cooperation and Smart Partnerships", the seminar aimed to strengthen relationship between Malaysia and Turkey and signifies the growing internationalisation of Islamic or Participative finance. The aim is manifested by the increased presence of Islamic financial institutions in new jurisdictions, international participation in Islamic financial markets and cross border flows of Islamic finance activities. 

The seminar provided a platform for the Malaysian and Turkish financial and business community to share and exchange knowledge and industry views on the current development of the Islamic financial market. Malaysia is a gateway for Turkish investors and financial institutions to expand their trade and investment opportunities in the ASEAN region. Conversely the Malaysian financial community can use Turkey as a platform to the Central Asian and Europe regions.

Key potential areas of collaboration between Malaysia and Turkey include:

• Turkish financial and business community to use Malaysia as a platform to raise funds such as sukuk and Islamic syndication;
• Malaysia's Economic Transformation Programme (ETP) offers the Turkish business community investment opportunities;
• Malaysia and Turkey's financial community can collaborate to formulate or offer innovative solutions in Islamic finance, Islamic finance education and professional services; and
• Turkish financial institutions and relevant entities are invited to become members of Bursa Suq Al Sila', the world's first end-to-end Islamic multi-currency commodity trading platform, which facilitates liquidity management in the Islamic financial market and institutions.

The Seminar was attended by over 250 delegates, comprising senior business and financial leaders from Turkey and Malaysia, including from the Asian, European and Middle East regions.

MIFC Promotions Unit
Bank Negara Malaysia
30 September 2011

 About Bank Negara Malaysia

Bank Negara Malaysia (BNM) was established in 1959, under the Central Bank of Malaysia Act 1958 (Revised-1994). The central bank is principally entrusted to uphold monetary and financial stability and maintain oversight over the payments system in the country. By maintaining monetary stability through prudent conduct of monetary policy, BNM has kept the average inflation low and preserved the purchasing power of the ringgit, thus securing the prospects for sustainable economic growth and development. Over the years, BNM has significantly contributed to the development of a comprehensive, efficient and resilient financial sector that has been able to meet the increasingly sophisticated needs of consumers and businesses. Malaysia's financial sector now distinctively encompasses both the conventional and Islamic financial services. By focusing on Islamic finance where Malaysia has a comparative advantage, BNM has taken the lead in promoting Malaysia as an international Islamic financial centre. Within this initiative, BNM approves licenses for the establishment of International Islamic Banks and International Takaful Operators as well as building the necessary institutions, including the International Centre for Education in Islamic Finance (INCEIF) and the International Shari'ah Research Academy for Islamic Finance (ISRA) in promoting training, education and research to advance the talent development for the Islamic financial services industry. Meanwhile, the BNM Shariah Advisory Council ascertains applications of Shariah principles on Islamic financial services by providers under the purview of BNM and acts as an advisor to BNM on Shariah matters on such services.
For more information on BNM, please log on to www.bnm.gov.my

About the MIFC initiative

In August 2006, the Malaysia International Islamic Financial Centre (MIFC) initiative was launched to position Malaysia as a hub for international Islamic finance. The MIFC initiative comprises a community network of the country's financial and market regulators, including Bank Negara Malaysia (Central Bank of Malaysia), Securities Commission Malaysia, Labuan Financial Services Authority and Bursa Malaysia (National Exchange); Government ministries and agencies together with industry participation from the banking, takaful, capital market institutions, human capital development institutions and professional services companies which are participating and working collaboratively in the field of Islamic finance.

The MIFC initiative is supported by global legal, regulatory and Shariah best practices that enable industry practitioners to conduct international business in Islamic finance in the areas of Islamic capital market, Islamic fund and wealth management, international Islamic banking, international takaful and human capital development, while enjoying attractive incentives. 
Through the "Shaping Islamic Finance Together" brand proposition, Malaysia welcomes global talents, leading players, issuers and investors to shape the future of Islamic finance together through the MIFC initiative, leveraging on and benefiting from Malaysia's more than 30 years of experience in Islamic finance, in an environment of innovation and thought leadership.