Shariah Banking Programme for Officials from The Government of Philippines by INCEIF Under the MTCP

Kuala Lumpur, 23 Sep 2021 – INCEIF recently concluded its “Shariah Banking Framework” Programme under the Malaysian Technical Cooperation Programme (MTCP) for 25 participants from the Government of Philippines and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Ambassador Norman Muhamad, Ambassador of Malaysia in the Philippines, in his speech reiterated Malaysia’s commitment in sharing the nation’s knowledge on Islamic finance with the rest of the world, particularly with our ASEAN neighbours in the spirit of prosper thy neighbour.

Former Bank Negara Malaysia official and current Director of Alliance Islamic Bank, Haji Rustam Mohd Idris, kicked of the programme with “Regulatory framework for Islamic finance – the Malaysian experience” where participants got to familiarise with the comprehensive legal framework for Islamic finance in Malaysia, particularly how to operate in a dual regulatory system.

Head of Shariah at OCBC Al-Amin Bank Berhad, Mr Abdul Rahman Mohd Yusoff who is also an INCEIF Alumnus, discussed “The business of Islamic banking”, going into details the concept of permissibility in business, the combination of moral and legal value and the prohibited items in Islamic banking. Participants got to learn about Islamic home financing models including affordable house financing, Islamic asset financing models and Islamic financing for SME models.

The programme by INCEIF is part of the MTCP initiative in close consultation with the Government of Philippines and BARMM to provide an overview on the fundamental framework and practice of Shariah Banking, Islamic Social Finance and Shariah governance applications. Philippines President Duterte in 2019 signed the Republic Act 11439, or the Islamic Banking Act, regulating the operations of Islamic financial institutions. The law was approved to meet the demands of the Islamic community for banking business that do not involve riba. The country’s Department of Finance has vowed to strengthen the Islamic banking system in the Philippines to boost investor confidence and peace progress in BARMM. DOF would work with Islamic banks in improving their portfolio as part of efforts to craft a financial industry in BARMM as there was a need for the region to come up with a reputable bank to secure needed funds for social services and infrastructure projects in the region.

The 3-day programme had an active engagement between the trainers and participants, with many questions and discussions exclusively on Malaysia’s practice on Shariah Banking, Takaful and Shariah Governance and how these could be applied in the Philippines. Participants indicated future opportunities of collaboration between Malaysia and the Philippines in the development of Islamic finance in the region. They looked forward for more human capital development in the Philippines in the area of Zakat and Waqf. Some of the participants also highlighted their interest to learn more about Shariah governance for digital banking, Islamic fintech and the overall Islamic banking framework in future programmes.

Given the enthusiastic response, INCEIF looks forward to conduct an enhanced and in-depth programme for MTCP in  2022 for the Government of Philippines and BARMM covering the requested focus areas.


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