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Bursa Malaysia Adds Inter-Pacific to Islamic-Compliant List

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KUALA LUMPUR (June 20): Bursa Malaysia Bhd has added Inter-Pacific Securities Sdn Bhd to the bourse operator and regulator’s Islamic participating organisations list to further grow the Islamic capital market.

Bursa Malaysia said in a statement today that Islamic stockbroking services played an important role, under which clients’ funds were placed in Shariah-compliant accounts.

“With the latest addition, investors will have a wider choice of Islamic POs (participating organisations) to represent them, which is in line with the priority of Bursa Malaysia-i, to provide a conducive marketplace for the Shariah investing community and to spur the growth and vibrancy of the Islamic capital market domestically and regionally,” Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan said in the statement.

According to Bursa Malaysia’s statement, Inter-Pacific is the 12th stockbroking firm under Bursa Malaysia’s Islamic participating organisations list.

The list includes Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, BIMB Securities Sdn Bhd, CIMB Investment Bank Bhd, Hong Leong Investment Bank, Jupiter Securities Sdn Bhd, Kenanga Investment Bank Bhd, Malacca Securities Sdn Bhd, Maybank Investment Bank Bhd, RHB Investment Bank Bhd and TA Securities Holdings Bhd.

Originally published on www.theedgemarkets.com

 

Push for Mergers Among Islamic Banks and Non-Bank Lenders in Malaysia

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CONVENTIONAL banks aside, there is a push by industry players for mergers and acquisitions (M&A) to take place in the crowded Islamic banking as well as the non-bank lender space.

There are 16 Islamic banks in Malaysia.

Two are full-fledged standalone banks: Bank Islam (M) Bhd and Bank Muamalat Malaysia Bhd.

Eight more are subsidiaries of conventional banks, while the remaining are foreign banks.

 Non-bank lenders include entities such as the Government-owned Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat), Bank Simpanan Malaysia, Bank Pertanian Malaysia Bhd and Malaysia Building Society Bhd (MBSB).

“There is no need for the spaces to be as fragmented as they are now as the country moves up the value chain,” says an analyst.

Having said that, he points out that some of the banks really need to improve their non-performing loans and balance sheets.

“Efficiency and productivity have to permeate across the entire ecosystem, be it conventional or otherwise,” he adds.

M&A activities in this particular sectors of the banking industry will also open up opportunities for major institutions to see how they can participate in them.

It was reported recently that Permodalan Nasional Bhd (PNB) which is the country’s largest fund management company, is believed to be open to the idea of acquiring Bank Rakyat in a move which could lead to value creation between Bank Rakyat and PNB-controlled companies.

Besides the MIDF Group which is the investment banking and asset management arm of PNB, the fund also controls Malayan Banking Bhd (Maybank) – the largest bank in the country that also has a regional presence.

PNB has a 60% stake in Malaysia’s only national reinsurer, MNRB Holdings Bhd which is grossly under-valued

Following the effects of the Asian financial crisis in the late 1990s, Bank Negara had called for a consolidation of the country’s then almost 60 financial institutions of which over 20 were local commercial banks.

Today, the country has eight local banking groups.

Nevertheless, while consolidation has happened in the conventional banking industry, new licences had been issued within the Islamic banking space to more Islamic banks like Bank Muamalat, Kuwait Finance House, Asian Finance Bank (AFB) and Al Rajhi Bank, resulting in the overcrowded situation.

Of the banks, AFB however is currently in talks with MBSB for a proposed merger.

Meanwhile, PT Bank Mandiri Tbk, Indonesia’s largest bank by assets, is soon expected to start operating here with full banking rights.

Bank Mandiri currently operates in Malaysia under the licence of remittance office.

 Originally published on www.thestar.com.my

Islamic Banks Expand, But ‘Double-Digit Growth Spree May be Over’

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Islamic banks have continued to expand their balance sheets and capital buffers, but the era of double-digit growth rates could be coming to an end while asset quality concerns creep up, an industry oversight body said recently.
Islamic finance, which has its core markets in the Middle East and Southeast Asia, follows religious principles that forbid interest and shun outright speculation, and as such is seen as an alternative to interest-based banking.
That proposition is underpinned by claims that Islamic finance can weather, if not avoid, the kind of financial turmoil that has embroiled conventional banking in recent years.
Islamic banks have indeed expanded but uncertainties in the global economy and political disquiet have taken their toll, the Islamic Financial Services Board (IFSB) said in its fifth financial stability report. Although it was weathered those challenges, the industry has moved away from double-digit growth rates enjoyed in previous years, the IFSB’s acting secretary-general Zahid ur Rehman Khokher said.
“This slowdown underscores the importance, more than ever, of strengthening the resilience of the Islamic financial system and addressing internal weaknesses and vulnerabilities.”
An IFSB survey of 170 Islamic banks and 83 “Islamic windows” in conventional banks across 17 countries found their combined assets grew by 10.9% to reach $1.4tn at the end of September 2016.
Islamic banks extended $939bn in financing during that same period, up from $826bn a year earlier, while their capital adequacy ratios remained above regulatory requirements.
Despite this, the asset quality of Islamic banks is deteriorating: Their net non-performing financing to capital ratio increased sharply to 25.6% at the end of September, up from 16.1% a year earlier.
In addition, the short-term liquidity of Islamic banks continues to be an area of concern, the IFSB said.
The IFSB also released findings of a study of stress-testing of Islamic banks conducted earlier this year.
The study found important links between four macroeconomic variables – namely interest rates, unemployment, real estate prices and oil prices – and the non-performing financing ratios, deposits, financing and assets of Islamic banks.
There are some bright spots, with the wider Islamic finance industry growing to $1.9tn in assets, with strong gains in sectors including Islamic insurance or takaful.
Takaful remains a small segment of the industry but contributions have grown by 12%, compared to 4% for conventional insurers, the IFSB said.
Scale remains a challenge for takaful firms, although the IFSB said it expected consolidation efforts to continue in the sector.

Originally published on www.gulf-times.com

Malaysian Incubator Signs Deal to Boost China’s Halal Exports

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A Malaysian technology and energy incubator has agreed to collaborate with companies in Hong Kong and China to produce and market halal-certified foods internationally.

In a stock market filing, Asia Bioenergy Technologies said its Asiabio Capital subsidiary had signed a memorandum of understanding with YRZC International, Shan Xi Hong Hui Food (SXHHF) and Shan Dong Wang Jia Yuan Zi Halal Food Brewing (SDWJYXHFB) last week to “establish collaboration and explore opportunities to develop, produce and export halal-certified food products to the global marketplace.”

The agreement slots into China’s “One Road One Belt” economic policy, which aims to see 65 countries across Asia, Africa and Europe linked commercially by land and sea—albeit with a halal spin.

“This signifies our intention [to build] physical support and infrastructure for a halal food and product hub in China,” said AsiaBio Capital’s David Chen Kon Fook.

“We have identified YRZC as our exclusive business development agent for such a purpose, and aim to tap into the expansive network via our diverse incubatees,” he added.

One of these, NetX Holdings, recently announced its intention to build a similar e-commerce halal marketplace in Hangzhou, having acquired a controlling stake in China-based Flavours of Malaysia, which markets speciality Malaysian products in the Far East.

Flavours of Malaysia will establish new fulfilment centres in Hangzhou which will “conduct research and development on Chinese national acceptance of Malaysian products and to use the research findings to acclimatise the product to suit the local taste buds,” NetX said in a statement.

 Under the terms of the latest agreement, Asiabio Capital will act as a halal-certified “channeling centre” and regulatory liaison body for product development and quality, while YRZC of Hong Kong, which is involved in a number of diversified fields from television production to brand marketing and promotion, has been appointed as an exclusive business development agent in China.

Together, these companies will take SDWJYXHFB and SXHHF products and apply for Halal-certified licences from the Malaysian halal regulator, Jakim.

SDWJYZHFB, located in Shandong, China, is mainly a halal food brewing company with jujube vinegar as its main product.

Shaanxi Weinan City-based SXHHF, meanwhile, operates in baked goods, sesame seeds, bakery flours and sugar production.

“All parties will carry out research and development on the new product lines which will be integrated with both Chinese Culture and Islamic religious doctrine in order to create a brand which is ‘trusted’ and halal-certified,” he filing said.

  • Originally published on Ewww.foodnavigator-asia.com

Malaysia’s Felda Global Shelves $350 Mln Islamic Bond Issue

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KUALA LUMPUR, June 9.An investment holding company of Felda Global Ventures Holdings has shelved plans to sell an Islamic bond in Malaysia, IFRreported on Friday, after investigators raided the parent FGV‘s headquarters following allegations of corruption.

FGV Seri Costa had filed 1.5 billion ringgit ($352 million) sukuk wakalah programme with Malaysia’s securities regulator and sole arranger Maybank was finalising documents for a bond issue, IFR said. The sale is likely to be suspended indefinitely amid uncertainties at the parent firm, IFR added, citing bankers.

FGV was not immediately available for a comment.

The world’s No.3 palm plantation group has begun an internal probe into some transactions at a subsidiary, while FGV’s board suspended its Chief Executive Officer Zakaria Arshad and three others earlier this week.

The CEO has denied wrongdoing and called on the Malaysian Anti-Corruption Commission (MACC) to conduct its own investigation. Officials from MACCspent nearly eight hours at FGV’s headquarters on Thursday, seizing documents and interviewing company officials.

“MACC is currently in the process of reviewing the documents that were seized to collect evidence relating to the investigation before further action is taken,” MACC Deputy Chief Commissioner Azam Baki said in a statement.

“MACC will begin to call witnesses and individuals involved to help with the investigation shortly,” he added.

The investigation focuses on six issues involving FGV, he said, without providing any details.

Turmoil at FGV – whose biggest shareholder is state-owned Federal Land Development Authority – could hurt Prime Minister Najib Razak, who government sources say is expected to call elections later this year.

FGV shareholders, many of them small landowners, form a key vote bank for Najib‘s ruling alliance in battleground states.

Originally published on www.timesofindia.indiatimes.com

AirAsia Female Pilots Get Specially Designed Hijab as Part of Uniform

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Malaysia-based budget airline AirAsia has unveiled the latest in crew fashion with a new specially designed hijab for the carrier’s female pilots.

The hijab, which will be worn by female Muslim pilots on board AirAsia and AirAsia X flights, was designed in collaboration with hijab brand Naelofar Hijab.

The airline said the hijab was “specifically tailored to meet their workday needs”.

 Rudy Khaw, AirAsia’s regional head of branding, said the design “complements our female pilots’ look while providing enhanced comfort as they perform their duty.

Neelofa, founder of Naelofar Hijab, said the company had worked with pilots on every aspect of the design, which incorporates stretchable fabric as well as a Naelofar Hijab symbol created with Swarovski crystals. AirAsia currently has 55 female pilots, with 12 of those wearing a hijab.

The airline will also be revamping its hijab designs for ground staff in the near future. AirAsia X flies into Sydney, Melbourne, Perth and the Gold Coast.

Despite more women taking on roles as pilots with airlines, the industry is still largely dominated by men. Estimates from the International Society of Women Airline Pilots say there are about 4000 women pilots worldwide, of about 130,000 – just over 3 per cent.

In March this year Air India marked International Women’s Day by having an all-female crew fly its longest route, from New Delhi to San Francisco by circling the globe, in a Boeing 777.

Last year an all-female crew from Royal Brunei Airlines touched down in Saudi Arabia for the first time – a country where women are forbidden to drive a car.

Originally published on www.traveller.com.au

Non-Halal Chicken Meat Seized in Malaysia

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Tawau: Six tonnes of chicken meat from the United States were confiscated from two supermarkets here, Wednesday, for not having the Halal logo – the largest such bust here in an integrated operation led by the Sabah Islamic Religious Affairs Department.Its administration officer here, Abdul Imam Basirun, said the Department of Veterinary and Animal Industry (Dovsai) seized the chicken meat valued at RM34,000 for further action.

“The non-Halal chicken meat was believed imported illegally as it did not go through Dovsai and Customs Department. They were mixed with other goods to avoid detection from the enforcement authorities.

“However, local chicken meat being sold in the market so far has no halal issue as inspections carried out in the chicken slaughter houses revealed no problems,” he said.

In Sibu, Sarawak, last month, several tonnes of chicken meat were also confiscated and buried after it was found that they were imported illegally.

On Tuesday, Jheains removed three advertisement banners displaying breaking of fast and pre-dawn dishes such as buffet Ramadan in eateries, including at a hotel here.

He said action was taken against the eateries and hotel as they do not possess Halal certification when reflecting an impression that the food is halal such as using the word “Buffet Ramdan” or other Islamic words or objects.

Meanwhile, Abdul Imam said two men in 50s and 60s were arrested for not fasting in Chinese restaurants in Kg Jawa and Pasar Tanjung.

The integrated operation was joined by 20 enforcement personnel including 10 Jheains officers and the rest from Dovasai, Tawau Health office, Domestic Trade, Co-operatives and Consumerism Ministry Tawau branch and Tawau Municipal Council (MPT).

He said the operation would last until this Friday (June 9) to monitor on halal aspects by focusing on slaughter houses, logistics premises, premises of selling chickens and beef, and restaurants, including hotels that offer Buffet Ramadan.

Abdul Imam said the operation in Sabah was headed by the Sabah Jheains Principal Assistant Director (Enforcement Division) Abidin Ali Hassan.

He advised traders to always be honest in conducting businesses and never sell essential items like non-halal chicken meat because misleading the consumers can cause legal action to be taken against them and their goods seized by the enforcement authorities.

He also reminded the Muslim consumers to be extra careful when buying essential goods and advised them to refer to Jheains if they ever have any concerns that need to be addressed. – Lagatah Toyos

Originally published on www.dailyexpress.com.my

Travel Marketplace KKDay Debuts in Malaysia to Dominate the $5Mn Tourism Industry

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Taiwanese travel e-commerce platform, KKDay, has announced it is expanding its footprint to Malaysia. With the launch of platform, CEO Ming Chen wants to dominate the $5 million travel and tourism industry of the nation.

The company, strategically, planned the move into the country seeing a “growing population, wanderlust for travel among Malaysians, and a thriving economy”. KKday CEO Ming Chen, in a statement, says,

KKday, since its launch in 2014, has expanded to Hong Kong, Korea, Japan, Singapore, Thailand and now, Malaysia. It mainly focuses on Asian destinations but has extended to Europe and America. It claims to have provided travellers with over 6,000 travel experiences from 53 countries and 170 cities all over the world.

The company envisions to becoming the most preferred tours and activities platform for DIY travellers in the country. CEO Ming Chen, commenting on the same, says,

Ultimately we wish to become the number 1 choice of tours and activities for Malaysian DIY travellers when they travel abroad.

He further opines that Islamic tourism will play a key role in the expansion as they will be developing  sightseeing tours and unique customer experiences exclusively tailored to the needs of Muslim travellers. He believes that Malaysia exhibits a unique tourism portfolio as multicultural and ethic market of both Chinese and Muslim tourists houses the ideal environment for the them to grow.

KKDay, however, had officially launched its platform in Malaysia on April 19th with its #flywithpama campaign to Taiwan. The campaign will award a three-member family trip of 5-day, 4-night stay in Taiwan. It had debuted in Singapore in the similar manner with a campaign named #taiwantrippin.

Recently, the startup had raised $7 million in Series A+ funding led by Monk Hill Ventures and Taiwanese VC firm AppWorks. The round also saw participation of Mindworks Ventures, Cathay Ventures and Substances Capital.

Originally published on www. thetechportal.com

Sime Gets Nod to Restructure US$800m Sukuk

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KUALA LUMPUR: Conglomerate Sime Darby Bhd has received bondholders’ approval to restructure its US$800 million sukuk, a milestone in the group’s proposed debt reorganisation, which forms part of its plan to create three independent listed companies.

US$400 million of the sukuk mature in 2018 and an equal amount in 2023.

Sukuk holders approved the company’s plan to buy back the papers or replace the obligor or borrower, to Sime Darby Plantation from Sime currently.

“This is an important step for the group in our proposed reorganisation exercise to unlock value for shareholders,” Sime president and group chief executive Tan Sri Mohd Bakke Salleh said in a statement on Tuesday.

“We must ensure that each listed company has the optimal capital structure which will allow it to pursue growth with focus and agility,” he said.

The broader reorganisation of the group involved the proposed listing of Sime Darby Plantation and Sime Darby Property through share distributions.

Sime would remain listed, owning the automotive, industrial equipment and logistics businesses.

On April 18, 2017, Sime launched a debt restructuring exercise to restructure its US dollar-denominated sukuk.

Under the exercise, sukuk holders could cash in on their investment in the sukuk or agree to change certain terms and conditions and replace Sime with Sime Darby Plantation as the new borrower or obligor.

Sime achieved a final tender and consent participation of 91%, across both series, of the sukuk.

In addition, investors holding almost a quarter of the 2023 sukuk chose to remain invested in Sime Darby Plantation.

HSBC Bank is the sole structuring and dealer manager for the exercise. – Bernama

 Originally published on www.thestar.com.my

Neelofa Launches New Hijab Collection For Raya

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As Ramadan approaches and Hari Raya is closing in, starlet cum entrepreneur Noor Neelofa Mohd Noor, fondly known as Neelofa, who was just listed on Forbes’ 30 Under 30 Asia 2017 list, is back with her line of hijab collection for Naelofar Hijab Raya 2017.

In a launch that took place in Mutiara Ballroom Royale Chulan Damansara yesterday for the number one headscarf brand in Malaysia, Naelofar Hijab, Neelofa revealed her 10 lovely hijab collections, which include their signature style – the instant and the semi-instant hijab – inspired by the beauty herself.

The collection aptly named ‘True Love’ has pieces individually named after love themes like ‘Sweetheart’, ‘Soulmate’ and ‘Eternity’. It will also feature four exclusive pieces under the ‘Love Edition’ collection (‘My Love’, ‘Dear Love’, ‘Darling Love’ and ‘Sayang Love’), – which will be worn by the actress during her Hari Raya telemovie ‘Suri Hati Mr Pilot Raya’ which will be aired on Astro Ria on the first day of the celebrations.

To add more character to the headscarves, the brand once again collaborates with famed Austrian crystal maker Swarovski for bejewelled pieces, making each one specially crafted with a touch of high-quality crystals.

In a 12-minute video shared on the brand’s Facebook page the same day as the launch, the love story plot starring co-star Miller Khan and directed by Isma, revealed six of the 10 hijab collections donned by the actress herself, while sending out the message of love at first sight – which is what the collection entails.

Although some may feel that the hijab collection this time around have an almost identical look and feel, there has been a couple of uplifts, especially with the length of the hijab which are slightly longer, covering a wider area of the chest, thus making it more suitable to be worn during prayers.

We bet many are excited to get their hands on the new collection and are already inspired by the many looks the actress exudes on stage as well as on screen with her wonderful pieces, and what better time in a build up for the upcoming festivities.

So, to all Naelofar Hijab fans and Neelofa supporters, you can add some love to your wardrobe to Hari Raya this year, as the headscarves go on sale starting today (May 17) at Naelofar Hijab boutique in Taman Tun Dr Ismail, Publika, as well as through other certified Naelofar Hijab stockists, with prices ranged between RM85 to RM89.

-Originally published on www.malaysiandigest.com

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