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KWAP commits RM3bil to shariah-compliant ventures, SC to establish Malaysia's first Social Exchange

Publish date: Tue, 28 May 2024, 03:46 PM

KUALA LUMPUR: The Retirement Fund Incorporated (KWAP) is set to inject up to RM3 billion into shariah-compliant investments through its vehicle, Dana Pemacu.

Prime Minister Datuk Seri Anwar Ibrahim, delivering the keynote address at the Global Forum on Islamic Economics and Finance (GFIEF), highlighted the initiative's aim to bolster high-growth Malaysian enterprises while stimulating the venture investment landscape.

He said it was part of the continued and intensified efforts to enhance the investment ecosystem within Malaysia.

Anwar, who is also finance minister, unveiled four new initiatives, including the establishment of Malaysia's inaugural Social Exchange. 

This innovative platform, spearheaded by the Securities Commission Malaysia (SC), offers a structured avenue for private capital participation in projects yielding positive social outcomes. 

He said the initiative was aimed at benefitting diverse entities such as non-governmental organisations, social enterprises, and State Islamic Religious Councils.

"I am also pleased to introduce a new dimension to our sukuk issuance under the Government of Malaysia via the wakalah 'bil-khadamat' structure.

"We plan to finalise this Sukuk by 2025, as we work to complete all required arrangements and preparation," he said. 

The two other measures comprised innovation on sukuk structures, particularly to best meet the needs of climate and energy transition; and initiative by the Labuan International Business and Financial to actively raise and invest funds via its Islamic Digital Asset Centre(IDAC), by initiating Islamic asset backed tokens and also an Islamic digital finance sandbox.

He commended the Islamic banking industry for their collective pledge of RM2.67 billion in secured financing facilities through the Halal Development Corporation's Halal Integrated Platform to support the development of the halal industry in Malaysia.

This two-day GFIEF, organised by Bank Negara Malaysia in collaboration with the SC, Labuan Financial Services Authority, the International Islamic Liquidity Management Corporation, the Islamic Development Bank, the Islamic Financial Services Board, and the World Bank Group, underscores Malaysia's commitment to advancing Islamic finance on the global stage.

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