Following the phenomenal success of the inaugural Malaysian Islamic Finance conference last year, Malaysia has once again successfully hosted the MIF Issuers and Investors Forum on the 13th and 14th August 2007 at the Mandarin Oriental, Kuala Lumpur.
Dr Zeti Akhbar Aziz, Governor, Bank Negara, Malaysia
MIF 2007 focused on Malaysia’s role as the dominant force in Islamic finance and how it could function to link the Middle East and Asian countries. Keynote addresses were delivered by Dr Zeti Akhtar Aziz, the governor of Bank Negara Malaysia, and Dr Nik Ramlah, senior executive director of Securities Commission. On the first day, the issuers day, there were about 450 attendees with approximately 19% international participants. While the second day – the investors day – witnessed the attendance of 420 participants including 24% international delegates. The delegates for both days came from over 35 countries across the globe.(To read Dr Zeti ’s speech in full see Key Notes & Panelists)
MIF 2007 focused on Malaysia’s role as the dominant force in Islamic finance and how it could function to link the Middle East and Asian countries. Keynote addresses were delivered by Dr Zeti Akhtar Aziz, the governor of Bank Negara Malaysia, and Dr Nik Ramlah, senior executive director of Securities Commission. On the first day, the issuers day, there were about 450 attendees with approximately 19% international participants. While the second day – the investors day – witnessed the attendance of 420 participants including 24% international delegates. The delegates for both days came from over 35 countries across the globe.
The panelists on the issuers day discussed various topics that focused on the effect of the US sub-prime market on Sukuk issuance, the benefit of rating, the need to establish institutional investors (Takaful and pension funds) and also Japan’s interest in issuing its first Sukuk. The sub-prime market credit crisis in the US has indirectly caused issuers to pay attention to the timing of the issuance. “The sub-prime market does impact the bond market. In the Islamic space there was a few transactions cancelled because the issuer felt the time is not right to go into the market. In my opinion, the current credit crises will bring some bad and good news. The bad news is, the issuer will face more covenants and a thin pricing. Nonetheless, there is considerable amount of liquidity in the market and the Sukuk issuance will keep on continuing,” said Salman Younis, the managing director of Kuwait Finance House (Malaysia).
Dato' Yusli Mohamed Yusoff CEO, Bursa Malaysia
The panelists on the issuers day discussed various topics that focused on the effect of the US sub-prime market on Sukuk issuance, the benefit of rating, the need to establish institutional investors (Takaful and pension funds) and also Japan’s interest in issuing its first Sukuk. The sub-prime market credit crisis in the US has indirectly caused issuers to pay attention to the timing of the issuance. “The sub-prime market does impact the bond market. In the Islamic space there was a few transactions cancelled because the issuer felt the time is not right to go into the market. In my opinion, the current credit crises will bring some bad and good news. The bad news is, the issuer will face more covenants and a thin pricing. Nonetheless, there is considerable amount of liquidity in the market and the Sukuk issuance will keep on continuing,” said Salman Younis, the managing director of Kuwait Finance House (Malaysia).
Dr Nik Ramlah Mahmood, Senior Executive Director,
Securities Commission
Dr Nik Ramlah Mahmood, the senior executive director of Malaysia’s Securities Commission, highlighted during her keynote address on the investor’s day that the single most important catalyst for the development of the Islamic capital market products and services in Malaysia was the establishment of the Shariah Advisory Council (SAC) at the Securities Commission. “Not only is the SAC able to respond to inquiries and proposals from the industry, often times, the SAC is also able to make pronouncements to encourage innovation from industry. The guidelines issued by the SC such as those on Islamic unit trusts, Islamic REITS and Islamic Securities, always attract considerable interest from across the globe,” Dr Nik enlightened. (To read Dr Nik Ramlah’s speech in full see Key Notes & Panelists)
The discussion on the second day revolved around how the Islamic finance industry as a whole faces a number of challenges. These include the need to modify the expectations of an investor. Currently, investors come into the market with the expectation of making high returns but only taking a low risk. This is where consumer education could play a role. An acute problem in Islamic finance at present is the issue of human capital. We lack qualified and experienced Islamic bankers, investment bankers, marketing teams, fund managers, lawyers, etc. This is where education and training plays a vital role to narrow the gaps in the workforce. Improvement of the regulatory framework is also fundamental to bring the industry forward because sometimes the law of the land that acts as the impediment of the industry. Last but not least, there is a vital need to work towards Shariah harmonization.
Michael Zamorski, Managing Director, Supervision, Dubai Financial Services Authority
Abdulkader Thomas, President & CEO,
Shape Financial Corporation
Concluding the two-day event Abdulkader Thomas, the event chairperson, wrapped up the forum with an interesting thought. “Islamic finance has concentrated a lot on real estate projects. There was raised concerns from the audience that Islamic banks are over-exposing themselves on real estate. Despite that fact, the investment in real estate keeps on growing. Why? It’s due to our demographic factor. I will describe in simple three words – youth, vigor and shortage. Most emerging economies have a young population who are dynamic and there is a shortage of supply of real estate. Thus, the real estate investment will continue for some time in the future.” Thus he concluded the forum. (To read the full report see: MIF Report 2007 – available from mid-September)
The inaugural forum held during August 2006 was quite categorically the industry’s largest ever event.
With 65 Panelists, 1,141 Delegates from 24 Countries ascending on Kuala Lumpur. In 2007, with a
larger event planned, it is very likely this figure will be surpassed ensuring again that this event will be the largest of its kind during the year.
The quality of the delegates is of utmost importance. As the event is by invitation only we determine who can and cannot attend. As a result we are not swayed by the revenue. In 2006 36% of delegates were of board level and a further 52% from senior management. 97% of all delegates expressed a desire to attend the 2007 event.
MIF 2008 will bring together senior representatives and experts from all leading institutions within the field of Islamic finance. This timely meeting of giants will provide issuers and investors from local and international Islamic capital markets the opportunity to discuss, network and ascertain more about this vibrant market.
A unique event:
By invitation and open solely to senior corporate executives and investors
No Fee to attend the MIF 2008
Leading practitioners impart experience in panel debates
Panel-led discussions and audience involvement
No presentations - no risk of lectures, marketing talk or sales pitches
Time efficient – two one-day events focusing on the requirements of two different audiences. Day one addresses issues for issuers, day two for investors. Attend the day relevant for you
Practical Discussion – a focus on the practical issues, not out of context theory
Published conclusions in a forum review available to all attendees
The subject matter, format and content of the Malaysian Islamic Finance event is subject to change at the discretion of the producers and hosts of the event.
