Work Together To Boost Islamic Financing, Urges Prince Andrew

KUALA LUMPUR- Malaysia and the UK should consider collaborations in Islamic financing since both countries have significant experience in the sector, the Duke of York, Prince Andrew, said today.

"Islamic finance is an area where I believe UK and Malaysia are pre-eminently well-placed to work together," he said in his address at the International Centre For Education in Islamic Finance (INCEIF) Global Forum which was opened by Prime Minister Datuk Seri Abdullah Ahmad Badawi here, Thursday.

The prince, who is UK's special representative for trade and investment, said he was first introduced to the concept of Islamic finance while in Malaysia, during a trip to Labuan some years back.

He said the opportunities were enormous as there had been a remarkable growth in Islamic finance markets in the past few years.

"Globally, the Islamic finance market is estimated at US$500 billion (US$1=RM3.50). With the annual growth rate of 10-15 percent expected over the next few years, I think the potential is quite clear to everyone," he said.

Prince Andrew said the British government was doing its bit to strengthen London's position as a gateway for Islamic finance by introducing measures aimed at facilitating and encouraging Islamic finance including taxing sukuk on the same basis as conventional securities.

He said, however, what really drew the British public's attention to the bold emergence of the Islamic finance sector was the recent sale of Aston Martin by sukuk.

"The innovative financing of this deal was discussed at London's sukuk summit in July, where Malaysian delegates also attended," he said.

Bank Negara Malaysia governor, Tan Sri Dr Zeti Akhtar Aziz, received the 'Outstanding Contribution to the Development of an Islamic Capital Market' award at the summit.

Prince Andrew said he was keen to see stronger trade and investment ties between the countries.

"Malaysia is UK's second largest export market in the South-East Asia and UK Malaysia's largest market in Europe," he said.

Prince Andrew later met with Petronas chief executive officer, Tan Sri Hassan Marican at the Petronas Twin Towers before visiting BT Multimedia (Malaysia), UK's sole research development centre outside the UK.