|Islamic Banking System Gets Foreign Investments
KOTA BAHARU, Jan 24 (Bernama) -- Deputy Finance Minister, Senator Datuk Dr Awang Adek Hussin, said up to 60-70 per cent of Islamic banking conducted in the country received investments from international parties.
He said that the high participation proved confidence in the Islamic banking system practised in the country and it had global recognition.
"After countries of the Middle East, Malaysia emerges as the leading nation that practices the Islamic banking system," he told reporters after officiating the opening of the first Bank Simpanan Nasional (BSN) branch in Taman Bendara, Pengkalan Chepa, near here Sunday.
Also present was the General Manager/Chief Executive of Bank Simpanan Nasional (BSN), Datuk Adinan Maning, and the Kelantan BSN director, Mohd Zulkefli Daud.
Dr Awang Adek said to date the country had surpassed the implementation of the Islamic system of 20 per cent in all financial systems in the country. "This high achievement is very revealing compared to the five per cent targeted since the system was introduced in the country in 1980.
"We are proud of this as this reflects that our country is very active in Islamic banking worldwide and this is great recognition of our country," he said.
He said this also proved the government's capability to implement an Islamic economic system and not as denied by certain quarters like opposition parties.
According to Dr Awang Adek, Malaysia was requested by the United States to open up an Islamic banking system in Afghanistan but due to certain problems Malaysia could only offer advice and guidance.
He said this was in line with the government's efforts to make Malaysia as a reference centre for best international banking," he said.
On the new BSN branch today, Dr Awang Adek said it was another BSN initiative in Islamic banking.
Meanwhile, Dr Awang Adek said the government had no intention to reduce or do away with the Cost of Living Allowance (COLA) for civil servants.
He said the matter was just raised by various quarters for their own interests so that people would have no confidence in the government to deal with the economic situation in the country due to the global economic situation.