The Global Forum on Islamic Economics and Finance (GFIEF), officiated by the Prime Minister YAB Dato’ Seri Anwar Ibrahim today, brings together over 2,300 policymakers, industry leaders and practitioners from 75 countries in Kuala Lumpur. Themed ‘Shaping a Resilient Global Islamic Economy Through Values-based Reforms’, the two-day forum aims to unlock the transformative power of Islamic economics and finance in fostering shared prosperity and equity. GFIEF facilitates deep policy discussions and showcases innovative solutions grounded in Islamic economics and finance principles to tackle global challenges.

Under the patronage of the Ministry of Finance Malaysia (MOF), GFIEF is organised by Bank Negara Malaysia (BNM) in collaboration with the Securities Commission Malaysia (SC), Labuan Financial Services Authority (LFSA), the International Islamic Liquidity Management Corporation (IILM), the Islamic Development Bank (IsDB), the Islamic Financial Services Board (IFSB) and the World Bank Group (WB).

Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour highlighted the forum's potential to catalyse innovative solutions and collective action. He said, “The fundamental values of Islamic economics and finance offer a way forward to reflect and rethink our approaches to addressing global economic challenges”.

GFIEF showcases Malaysia’s pioneering initiatives, which include:

• The launch of MIFC^[1] Leadership Council (MLC) Position Paper entitled ‘Establishing Islah (reform) through Islamic Finance’. The paper represents collective actions and shifts by the industry to foster positive societal transformation through Islamic finance. It highlights 18 MLC Impact Projects focusing on impact-creation initiatives to foster inclusivity, sustainability, ethical practices, and efforts to advance the MIFC agenda in building stronger Islamic finance linkages with global markets.

• The exchange of Memorandums of Collaboration (MOCs) between MLC and its counterparts from Indonesia, Hong Kong, Republic of Türkiye, and the United Kingdom. The MOCs emphasise Islamic finance product innovation, promote cross-border trade and financial activities, and enhance capacity building and education.

• The issuance of a new sukuk structure under the Malaysian Government Investment Issues (MGII) program, utilising the wakalah bi al-khadamat^[2] This innovative financial instrument, scheduled for issuance by 2025, is designed to complement existing sukuk options, enhancing the resilience and flexibility of Malaysia’s financial system.

• The development of a global programme for Islamic economists, spearheaded by Malaysia. This programme aims to cultivate a cadre of dynamic and highly skilled economists equipped with the right knowledge and expertise in Islamic economics to ideate solutions that can address contemporary global challenges.

• A pilot programme on Greening Halal Businesses (GHB) in collaboration with the MOF, IsDB, WB Hub in Malaysia and select implementation partners. GHB aims to assist halal businesses in Malaysia's transition towards greener and more sustainable practices.

GFIEF hosts a series of conversations with international leaders, panel sessions and fireside chats. These engagements centre around policy actions and solutions that are imperative to enhance economic resilience and unlock the true potential of the Islamic economy and finance. In addition, 17 side events are organised throughout the week by various organisations to support pertinent areas, including climate resilience, financial stability, sustainability reporting, and social finance. Over 50 exhibitors from international organisations, regulators, ministries, financial services industry representatives, industry associations, fintech companies, corporates, non-profit organisations and SMEs participated in the event.

For more information on GFIEF, please visit kl.gfief.com.my.

Bank Negara Malaysia
28 May 2024

[1] Malaysia International Islamic Finance Centre.

[2] Wakalah bi al-khadamat is an agency contract for services which refers to an arrangement whereby the investors appoint an agent to provide them with services such as collecting investment returns, managing leased assets etc. The agent will not be involved in the investment strategies and decisions.

Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour delivering his welcoming remarks

MIFC Leadership Council Chairman Tan Sri Azman Mokhtar presenting the MIFC Leadership Council (MLC)’s Position Paper titled 'Putting the Islam in Islamic Finance' to Prime Minister YAB Dato’ Seri Anwar bin Ibrahim (L-R): Dato' Seri Dr. Awang Adek Hussin, Executive Chairman, Securities Commission Malaysia; YB Senator Dato' Seri Diraja Dr. Zambry Abdul Kadir, Minister of Higher Education; YB Datuk Seri Amir Hamzah Azizan, Finance Minister II; YAB Dato’ Seri Anwar bin Ibrahim, Prime Minister of Malaysia; Tan Sri Azman Mokhtar, Chairman, MIFC Leadership Council, YBhg. Datuk Johan Mahmood Merican, Secretary General of Treasury and Datuk Abdul Rasheed Ghaffour, Governor, Bank Negara Malaysia

The exchange of Memorandum of Collaboration (MOC) with Manajemen Eksekutif Komite Nasional Ekonomi Dan Keuangan Syariah (KNEKS) Indonesia, represented by Dr. Sutan Emir Hidayat, Director of Islamic Economy Supporting Ecosystem and witnessed Dr. Hjh. Siti Ma'rifah, SH., MH, Chairperson of Provincial Committee for Islamic Economy and Finance (KDEKS) of Banten Province

The exchange of Memorandum of Collaboration (MOC) with the Finance Office of Presidency of The Republic of Türkiye, Turkey, represented by Tarık Akın, Head of the Department of Participation Finance at Finance Office and witnessed by Göksel Aşan, Ph.D., President of Finance Office

The exchange of Memorandum of Collaboration (MOC) with Islamic Finance Council UK (UKIFC), United Kingdom, represented by Omar Shaikh, Director, UKIFC and witnessed by Dame Susan Rice, Chair, Global Steering Group, Global Ethical Finance Initiative

The exchange of the Memorandum of Collaboration (MOC) with Hong Kong Trade Development Council (HKTDC), represented by Dr Patrick Lau, Deputy Executive Director

(L-R): Dato' Seri Dr. Awang Adek Hussin, Executive Chairman, Securities Commission Malaysia; YB Dato' Seri Diraja Dr. Zambry Abdul Kadir, Minister of Higher Education; YB Datuk Seri Amir Hamzah Azizan, Finance Minister II; YAB Dato’ Seri Anwar bin Ibrahim, Prime Minister of Malaysia; Datuk Abdul Rasheed Ghaffour, Governor, Bank Negara Malaysia; YBhg. Datuk Johan Mahmood Merican, Secretary General of Treasury and Tan Sri Azman Mokhtar, Chairman, MIFC Leadership Council