A Singaporean Non-Governmental Organisation (NGO) report highlights gaps in transparency in some financial institutions’ policies around the palm oil value chain The rising focus on climate change and interaction between deforestation and pandemic risks makes these sectors important to many investorsLack of transparency is viewed as a poor Environmental, Social, and Governance (ESG) practice by many investors, making clear and informative disclosures important to attracting capital from ESG-focused investors Banks with exposure to environmentally sensitive sectors don&rsquo...

The Malaysian Government has announced a further three-month extension of the bank loan moratorium for those who have lost their jobs as a result of the COVID-19 pandemic and the movement control order.  Speaking at a televised address on the 29th of July 2020, Malaysia’s Prime Minister, Tan Sri Muhyiddin Yassin announced that, following discussions with the Finance Minister and Bank Negara Governor, the Government had agreed to provide a more focused loan moratorium and targeted bank assistance for those in need.  According to Muhyiddin, individuals who had lost...

The State Bank of Pakistan (SBP) has issued revised instructions for banks in Pakistan to enhance their scope of operations of Islamic Banking Windows (IBWs) in order to increase the share of Islamic banking in the country.  According to a statement released by SBP, IBWs are now able to offer all types of Shariah-compliant financing products to their customers, which include corporates, small and medium enterprises, agriculture, housing and consumers. However, this provision is only valid if the respective IBW branch converts into a complete Islamic banking bran...

In a press release issued on its website, Qatar’s Barwa Bank announced the affirmation of its long-term credit rating at A2/Prime-1 by Moody’s, with a Stable Outlook. According to the press release, the investment-grade rating has been affirmed given the strength of Barwa Bank’s financial assets, as well as the quality of its operating margins. This reflects the achievement of milestones in Barwa Bank’s growth process and also highlights the uniqueness of its Shariah-compliant products and services portfolio. The rating reflects the strength...

In a filing with Bursa Malaysia, Syarikat Takaful Malaysia Keluarga and its subsidiary Syarikat Takaful Malaysia AM (Syarikat Takaful Group), have signed two Bancatakaful service agreements with RHB Islamic Bank, including a family Bancatakaful service agreement.  As per the first agreement, RHB Islamic Bank will sell, distribute and endorse family credit Takaful products developed by Syarikat Takaful Group, in exchange for an MYR 145 million facilitation fee paid to RHB Islamic Bank. In a statemen...

According to local news reports, Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, stated that the COVID-19 pandemic has left the world at a “critical juncture”, where the development of financial infrastructure and digital solutions are vital for survival. Sheikh Mansour stated that efficient policies and mechanisms would be required in response to the volatile developments taking place within the global financial sector. In addition, Sheikh Mansour stated that it was important for the senior management of the Central Bank&...

Salinah Nordin, Chief Executive Officer of Syailendra Asia Group, stated that the impending merger of state-owned Islamic banks will have a significant impact on Indoensia’s Shariah-compliant financial sector, and is viewed as a positive step in strengthening synergies within the sector.  Salinah states that a crucial aspect of the proposed merger of the state-owned Islamic banks is the integration and implementation of new procedures in a way that guarantees customer service-quality and promotes principles of openness and transparency in the handling of customer funds.&...

Malaysia’s Ministry of International Trade and Industry (MITI) reported the June 2020 trade surplus at MYR 20.89 billion (USD 4.91 billion), up 98.7% year-over-year (YoY), marking Malaysia’s largest ever recorded monthly trade surplus.  According to the MITI, exports grew 8.8% YoY in June 2020 to MYR 82.87 billion, boosted by a 13.7% gain in manufactured goods, which accounted for 88% of total exports. In addition, higher demand for palm oil and other related products, led to a 30% YoY increase in the export of agricultural products ou...

Speaking at a webinar on “Embracing a Halal Pharmaceutical Eco-System” in Malaysia on the 28th of July 2020, Duopharma Biotech Group Managing Director, Leonard Ariff Abdul Shatar, stated that Malaysia’s global leadership in the Halal certification front has paved the way for domestic pharmaceutical manufacturers to successfully enter the global halal pharmaceutical market. According to Leonard Ariff, Malaysia’s MS2424:2012 Halal Pharmaceutical Standard, which has now evolved into the MS2424:2019, has significantly increased the...

In a circular issued earlier this week, the State Bank of Pakistan (SBP) announced the revision of the holding limit attached to the Government of Pakistan’s Ijarah Sukuk, linking the holding limit to the higher of a cumulative target, or the issued amount. According to a previous circular issued in back in 2011, SBP’s Domestic Market and Monetary Management Department set the maximum holding limit of the Government’s’ Ijarah Sukuk for commercial banks at various rates on the issued amount. Islamic banks and conventional banks with...