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Najib Suggests Muslim Nations Have New Economic Model

News From : DagangHalal.com (19 May 2010)

KUALA LUMPUR, May 19 (Bernama) — Prime Minister Datuk Seri Najib Tun Razak has proposed Muslim nations have a new economic model designed to meet specific needs of the Islamic world.

He suggested that the model should be underpinned by a theoretical framework that should not only be inclusive and progressive but also practical with regard to policy formulation and implementation.

“In line with the concept “Gearing for Economic Resurgence”, the theme of the Sixth World Islamic Economic Forum (WIEF), I propose that we plan as an entire ecosystem.

“We need to think anew and move beyond our conventional frameworks. This may require a new economic model for the region, if necessary, that is designed to meet the specific needs of the Muslim world,” he said in his keynote address at the opening ceremony of the forum here on Wednesday.

Najib said the new economic model needs broad support, taking into account the requirements of the Organisation of the Islamic Conference (OIC) countries.

Najib, who is also WIEF Foundation patron, also suggested that it was timely for Muslim nations to consider holding an OIC Economic Summit in collaboration with the Islamic Summit Conference.

“In this way, we can focus on pressing economic issues and ways to expedite decisions and actions on behalf of the Muslim world. A dedicated, issue- oriented summit of this type would breathe new life and meaning into the OIC and overcome any cynicism towards it,” he said.

On Islamic finance, Najib said Muslim countries must continue to play a leading role in transforming the sector from being considered as niche banking into something that is widely accepted as central to long-term economic stability around the world.

He said the right conditions that need to be put in place include an appropriate regulatory framework and an infrastructure and architecture that promote Islamic capital markets.

“Islamic finance and banking must be systematically put in place with the involvement of all stakeholders. It will require getting a higher level of acceptance of ethical banking as a norm in modern day banking.

“The time is right for this. We see positive trends prevailing for the development of Islamic finance. In some countries, growth is as much as 10 to 15 per cent annually. This is indeed most encouraging and deserves full government support within the OIC countries,” he said.

Najib said Islamic financing could serve all — from small entrepreneurs through micro-financing to large corporations through sophisticated instruments from Islamic capital markets.

He also said Malaysia was prepared to share its experiences and expertise to spur Islamic finance development on a worldwide basis.

“Here in Malaysia, we have spent 30 years developing Islamic finance. I am pleased to say we have successfully developed it in parallel with our conventional banking system.

“It’s clear that Islamic finance can co-exist and thrive alongside conventional banking system and it should be promoted further,” he said.

Najib also said effective capital deployment was required to spur growth and productivity and to support the development of the Muslim Ummah.

“In this regard, I urge the private sector to take the initiative to mobilise capital through Islamic equity initiatives from regional and global sources and to deploy this capital productively to ensure an appropriate return for investors,” he said.

On halal market, Najib said linkages must be established between regional hubs to ensure coordination and standardisation of halal products.

Such linkages would enable efficient sourcing and deployment of halal products by donor countries and non-government organisations when Muslim communities face natural disasters, he added.

— BERNAMA

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