Malaysia can become a gateway for Emirati investors, Deputy Governor Bank Negara Malaysia
WAM - Emirates News Agency
Malaysia can become a gateway for Emirati investors, Deputy Governor Bank Negara Malaysia
By Muhammad Aamir
26 April 2010
WAM Abu Dhabi — Dato’ Mohd Razif Deputy Governor of Bank Negara Malaysia (BNM) said that Malaysia has ample investment opportunities in various fields and can become a gateway for Emirati investors to access Asian Markets, expressing his resolve to open joint ventures between Malaysia and United Arab Emirates to enhance economic and trade ties between them.
"We are here with an open hand to offer opportunities that we have to invest in our vibrant economy and want to see active partnership between Malaysia and UAE investors to further our economic and trade relations", he said while addressing a press conference here today at InterContinental Hotel, Abu Dhabi.
He was flanked by Danial Mah Abdullah, Deputy Director-General Labuan Financial Services Authority, Assoc. Prof. Dr. Mohamad Akram Laldin, Executive Director International Shari’ah Research Academy for Islamic Finance (ISRA), Dato’ Yusli Mohamed Yusoff DPMS Chief Executive Officer Bursa Malaysia Berhad. Malaysian Ambassador to UAE Dato Yahaya Abdul Jabar was also present.
He elaborated the initiative of Malaysia International Islamic Financial Centre (MIFC) and said that it was launched in August 2006 to promote Malaysia as a major hub for international Islamic finance.
The MIFC initiative comprises a community network of financial and market regulatory bodies, Government ministries and agencies, financial institutions, human capital development institutions and professional services companies that are participating in the field of Islamic finance.
"The MIFC initiative aims to position Malaysia as the Islamic finance hub through Sukuk Origination, Islamic Fund and Wealth Management, International Islamic Banking, International Takaful and Human Capital Development", he added.
MIFC encapsulates Malaysia’s more than 30 years of Islamic finance expertise and experience into a single initiative; upon which foreign financial institutions can leverage.
Under the MIFC initiative, financial institutions are welcomed to use Malaysia as a platform for their Islamic finance activities, leveraging on the comprehensive system and conducive environment for Islamic finance business available in Malaysia.
Various incentives are accessible to financial institutions participating in MIFC including new licenses for conducting foreign currency businesses, attractive tax incentives and facilitative immigration policies. Thus financial institutions may benefit from cost savings from a reduced cost of doing business, a shorter learning curve, shorter time to market, access to new markets and surplus funds and the advantage of having diversified into a new asset class.
Dato’ Mohd Razif said that Foreign and domestic financial institutions are offered to conduct the full range of international Islamic banking and takaful businesses in foreign currency under International Islamic Bank (IIB); International Takaful Operator (ITO); and International Currency Business Unit (ICBU).
"Foreign and local fund managers are invited to establish full-fledged Islamic fund management operations in Malaysia that will be accorded with various flexibilities, among others is flexibility to invest all their Shariah-compliant assets abroad", he pointed out.
He said: "we have removed many barriers to facilitate foreign investors, investors also enjoy free inward and outward movement of funds relating to foreign direct investment and portfolio capital investments. In addition, foreign investors will enjoy withholding tax exemption on profit or income derived from both ringgit and non-ringgit investments originated in Malaysia. Foreign investors are also allowed to hedge their position with onshore banks on committed flow of funds".
To a question he said that negotiations are underway on Free Trade Agreement (FTA) with Gulf Cooperation Council (GCC)countries and this will also give boost to trade ties with UAE.
On Global Financial Crisis he said: " there are two phases to this issue , in first phase based on Sharia principle and in the framework of Islamic Banking we are not affected with this meltdown but if we see the second phase this contraction do have affected since we are the part of the global economy, however with Islamic banking system we are in a better position to withstand this crisis".
To an other question he said that main objective of this visit is not only to offer investment opportunities in Malaysia but also explore investment prospects in UAE, so "it’s a two way exchanges".
He said many Malaysian companies are working in UAE and similarly quite a few Emirati companies are operation in Malaysia.
Malaysian Ambassador Datuk Yahaya Abdul Jabar informed that Malaysian delegation visit is the follow up of Prime Minister Datuk Seri Najib Tun Razak visit to United Arab Emirates (UAE) that helped strengthen trade and diplomatic ties between two nations. The country has been looking for investment and trade opportunities in the Gulf nation by building better political understanding with its government.
He said that Malaysian PM held discussions with HH General Sheikh Mohammad bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces of UAE during his official visit and they have agreed to promote bilateral Trade and Investment ties.
WAM/AM
