GEM aims to create entrepreneur synergy

Source: GEM Facebook page.

The Global Entrepreneurship Movement (GEM) was officially launched in Kuala Lumpur, Malaysia today. The non-governmental organisation (NGO) providing a networking platform for entrepreneurs from different sectors such as social entrepreneurship, technology, and halal to converge.

“I’m joined on this NGO by community leaders from different networks who will support a strong partnership for Malaysia and our entrepreneurs. We’ve got some incredible entrepreneurs, business leaders and innovators who are present today. They see the promise of internationalising Malaysia and will support GEM’s vision where no one is deprived or denied from being an entrepreneur," said YBhg. Tan Sri Dr Mohd Irwan Serigar Abdullah, the patron of GEM and Secretary General Treasury, Ministry of Finance. 

“GEM will be the first NGO that focuses on connecting, networking whilst fostering collaborations to internationalise Malaysia’s entrepreneurial ecosystem.” 

GEM aspires to build, promote, internationalise and connect the Malaysia-based entrepreneurship movement with the world, including the investment sectors, business angels, private equity firms, venture capitalists and the like. It also aims to align with current entrepreneurial initiatives and agencies by bringing them together.

YBhg. Tan Sri Dr Mohd Irwan said, "By placing greater emphasis on entrepreneurship via GEM’s strategic programmes, locally, regionally or at an international level, everyone will be provided opportunities to rise which will ultimately unleash the possibilities of creating jobs, spurring innovation and strengthening Malaysia’s leading position in entrepreneurship.”

GEM is set to invest in a capacity building programme via a two-day hackathon for 300 university students at Gathering of Rising Entrepreneurs, Act Together (GREAT) Kuching in Sarawak on April 2 and 3, 2016. GREAT Kuching is the ultimate gathering for all stages of entrepreneurs, startups and funding vehicles led by the National Strategic Unit (NSU) and the National Entrepreneur Development Office (NEDO), supported by the Malaysian Global Innovation and Creativity Centre (MaGIC). There will also be a year long programme done in partnership with Malaysia Debt Ventures (MDV) to help entrepreneurs who have failed rebound.

According to GEM’S President, Dash Dhakshinamoorthy, “Today, we have people from all walks of industries. Some are startups, some in growth stages and some are in the multi-million dollar revenue stage. However (the) one common thread that runs through the fabric of this group is the desire to make Malaysia the go-to place for launching ventures.

“The government has played a pivotal role for many years to spur entrepreneurship in the country. From setting up the MSC to launching various venture capital funds and also by investing in various agencies to catalyse and grow different clusters of entrepreneurs – grassroots, university entrepreneurship, startups, agri-entrepreneurs, creative entrepreneurs just to name a few. The time has come for independent and private sector players to synergise and weave the ecosystem together by building trust, collaboration and most importantly to be able to dream together to make the Malaysian entrepreneur truly global.” 

Interested?

Membership in GEM is open to students, individuals and companies. Membership fees begin from RM50.

BNM governor lays out success factors for investment accounts

The Islamic Financial Services Board (IFSB) has built a solid global reputation as a prudential standard-setting body for Islamic finance, said Bank Negara Malaysia Governor Tan Sri Dato' Sri Dr Zeti Akhtar Aziz in opening remarks at the IFSB's Meet the Members & Industry Engagement Session in Kuala Lumpur in late January. "The initiatives and milestones achieved by the IFSB have indeed paved the way for jurisdictions across the globe to build a solid foundation for the progressive growth of Islamic finance that is underpinned with stability," she said.

Dr Zeti also observed that the IFSB has made significant advancements in taking forward the recommendations made in the Islamic Finance and Global Financial Stability Report 2010 towards achieving financial stability in the national and the international Islamic financial system. "The effective implementation of the standards issued by the IFSB is key towards promoting the soundness and stability of Islamic financial institution. To enhance this prospect, the IFSB has strengthened its role in facilitating greater jurisdictional preparedness in the adoption of these standards through the provision of technical assistance to its members," she said.

"Malaysia is one of the jurisdictions that has adopted and operationalised the prudential standards and the guiding principles that have been issued for the industry. The implementation of these standards and guiding principles support the regulatory framework that we now have in place in our Islamic financial system."

Dr Zeti said that Islamic banks in Malaysia now have the potential to be better able to pursue their role as investment intermediaries through the offering of investment accounts in addition to the entrenched deposit products. The legal recognition of investment accounts in the Islamic Financial Services Act 2013 (IFSA) differentiates between deposit accounts and investment accounts while offering a new investment avenue, one that is being channelled to finance entrepreneurship, she pointed out.

Dr Zeti highlighted the Investment Account Platform (IAP) that is currently being developed for its growing popularity. The IAP will provide a centralised multi-bank platform as a new financing option for entrepreneurs with viable projects as well as an opportunity for the investing public to finance these projects, she noted.

"It is encouraging that to date, eight Islamic banks are offering investment accounts to their customers. More are expected to follow when the value proposition of such investment accounts, with its unique features and the different target market become better understood. The industry-led communication by the Association of Islamic Banking Institutions Malaysia will contribute towards increasing the awareness of customers on the concept and on the key features of investment account. The latest establishment of a consortium developed by four Islamic banks to develop and operate the IAP which is to be launched next month is also another initiative to advance this new offering," she revealed.

Dr Zeti also listed some of the prerequisites for a successful introduction to the investment account. "In the development of the investment account, it will be essential for Islamic banks, investors and entrepreneurs to embrace the different approaches in the management of the risk and return relationships that are embedded in the variations of the shari'ah contracts used in such investment accounts. These relationships need to be well understood by the parties involved and which are aligned with clear contractual and operational requirements.

"The IFSB has an important role in not only providing guidance but also in initiating the convergence of the different practices between IFSB members with regard to the treatment of the investment account - also referred to as profit sharing investment account (PSIA) - in the IFSB standards. More in-depth work can also be explored by the IFSB on the prudential requirements for the investment account to further ensure a conducive environment for such risk-sharing offerings," she said.

The global Islamic financial system is now operating at a time when the international economic and financial environment has become immensely more challenging. New risks that are more complex, with more profound systemic implications are emanating with the increasing forces of financial liberalisation, globalisation, technological advancement, intensified competition, financial innovation and the internationalisation of Islamic finance. Cumulatively, these developments necessitate greater prudential regulation and supervisory oversight to ensure a resilient and sustainable financial system.

Dr Zeti said the role of the IFSB remains instrumental to the industry, especially internationally, and called for members to continue their support for the IFSB. "Greater concerted efforts by members to consistently adopt and implement the prudential standards issued by the IFSB will not only contribute towards preserving financial stability but it will also enhance regulatory harmonisation across jurisdictions," she said.

"Malaysia, as the host of the IFSB will continue to be committed to support its development and its potential as a prudential standard-setting body in the international financial system."

Interested?

Read the full speech

Aafaq - Islamic Finance deploys NASDAQ Dubai Murabaha Platform

Aafaq – Islamic Finance, a UAE-based shari'ah-compliant financial institution, completed its first transaction on the NASDAQ Dubai Murabaha Platform in early November. Clients of Aafaq – Islamic Finance and other companies can use the NASDAQ Dubai Murabaha Platform to execute streamlined transactions within minutes. 

Officially launched in April 2014, the platform has completed a total of more than AED21 billion of transactions. It was set up by NASDAQ Dubai jointly with Emirates Islamic and is playing a key role in Dubai’s growth as the capital of the Islamic economy globally.

His Excellency Essa Kazim, Chairman of Dubai Financial Market and Secretary General of Dubai Islamic Economy Development Centre (DIEDC), said: “The expansion of the NASDAQ Dubai Murabaha Platform underlines the continuing success of the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, to develop Dubai as the global Capital of Islamic Economy, as overseen by His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, the Crown Prince of Dubai. By effectively serving the clients of Aafaq – Islamic Finance and other companies, the platform will provide growing support for the strengthening of the Islamic finance sector in the UAE.”

Sheikh Faisal Saoud Bin Khalid Alqassimi, Managing Director of Aafaq – Islamic Finance, said: “The NASDAQ Dubai Murabaha platform is a very attractive alternative to many other Islamic financing solutions, which can be subject to unexpected price movements, spreads and delays as well as poor liquidity. We are making use of the platform to offer our clients solutions for a variety of purposes, from personal finance to funds for company expansion.”

The platform makes use of shari'ah-compliant certificates that have been developed for the underlying assets of the financing transactions. Islamic banks, Islamic windows of conventional banks, and Islamic finance companies and their clients can make use of the platform through trading certificates.

Abdul Wahed Al Fahim, Chairman of NASDAQ Dubai, said: “NASDAQ Dubai will build on the growing success of the platform to attract more financial institutions to join it from the UAE and beyond, so that their clients can also benefit from its many advantages. We are committed to further enhancing our Islamic financing infrastructure with the support of all market participants.”

Hamed Ali, Chief Executive of NASDAQ Dubai, said: “The NASDAQ Dubai Murabaha Platform meets the specific requirements of shari’ah-compliant financing within a framework of international capital markets best practice. As a sophisticated and secure financing channel, it is set to cater to an increasing number of customers all over the world.”

Abdulla Al Awar, Chief Executive of DIEDC, said: “Aafaq – Islamic Finance’s decision to join the platform is another positive example of Islamic financial institutions in the UAE taking far-seeing and proactive steps to enhance the services that they offer to clients. This process is rapidly building critical mass in the Islamic financial sector in both quality and quantity.”

Read about the first bank to transact on the NASDAQ Dubai Murabaha Platform here.
Read about aafaq's partnership with MENACORP here.

Free Islamic civilisation and Asian civilisation MOOC to be offered by Universiti Putra Malaysia

Universiti Putra Malaysia (UPM) said its new online learning environment, available for free to the local community and globally as well, will include a course on Islamic civilisation.

The new method of learning, incorporating video lectures, interactive forums, chats, quizzes, and e-assessments, is in line with the current National Higher Education Strategic Plan which emphasises life-long learning, e-learning, internationalisation and knowledge transfer, the university said. 

UPM is currently converting the “Islamic Civilization and Asian Civilization” (Tamadun Islam, Tamadun Asia) course that is compulsory for all public universities as a MOOC course to benefit in-campus students as well as interested public communities. To be conducted in English, the course will focus on the role of civilisation in building Malaysian society based on principles such as mutual respect and social interaction within a multiracial society.  

Students can register online for the Putra Massive Open Online Course (PutraMOOC), and complete a course in roughly seven to eight weeks. 

*Images from UPM website