Najib hails potential of Islamic microfinance

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Islamic microfinance offers an ethical foundation to entrepreneurship and risk sharing that is lacking in conventional instruments, Malaysia Prime Minister Datuk Seri Najib Tun Razak said on Thursday (26/04/12).

Najib, in his keynote address at the Global Donors Forum 2012 in Kuala Lumpur, said Islamic microfinance can generate profitable products and help to create a dynamic environment for long-term investments.

“In recent years, some microfinance institutions have stepped in to service low-income Muslim customers and meet their need for products consistent with Islamic financial principles,” Najib was quoted as saying by Bernama.

“This has led to the emergence of Islamic microfinance as a new market niche and it is now for us to build on it.

The Global Donors Forum is an annual event that promotes philanthropy and the forming of strategic partnerships for social investment.

Islamic finance is based on the principle of removing riba, or usury, from the equation so that transactions are based on underlying and tangible assets.

Najib added that it is this principle that makes Islamic finance more than simply an industry from which to profit but an effort to ensure equity and enabling those less well of to pursue their entrepreneurial ambitions.

“Quite simply, financial innovations geared towards empowering not dominating people, can revolutionise our world. So, the ultimate focus of Islamic finance should be its core value proposition and not just furthering assets,” he added.

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Reading Time: 1 minute

Islamic microfinance offers an ethical foundation to entrepreneurship and risk sharing that is lacking in conventional instruments, Malaysia Prime Minister Datuk Seri Najib Tun Razak said on Thursday (26/04/12).

Reading Time: 1 minute

Islamic microfinance offers an ethical foundation to entrepreneurship and risk sharing that is lacking in conventional instruments, Malaysia Prime Minister Datuk Seri Najib Tun Razak said on Thursday (26/04/12).

Najib, in his keynote address at the Global Donors Forum 2012 in Kuala Lumpur, said Islamic microfinance can generate profitable products and help to create a dynamic environment for long-term investments.

“In recent years, some microfinance institutions have stepped in to service low-income Muslim customers and meet their need for products consistent with Islamic financial principles,” Najib was quoted as saying by Bernama.

“This has led to the emergence of Islamic microfinance as a new market niche and it is now for us to build on it.

The Global Donors Forum is an annual event that promotes philanthropy and the forming of strategic partnerships for social investment.

Islamic finance is based on the principle of removing riba, or usury, from the equation so that transactions are based on underlying and tangible assets.

Najib added that it is this principle that makes Islamic finance more than simply an industry from which to profit but an effort to ensure equity and enabling those less well of to pursue their entrepreneurial ambitions.

“Quite simply, financial innovations geared towards empowering not dominating people, can revolutionise our world. So, the ultimate focus of Islamic finance should be its core value proposition and not just furthering assets,” he added.

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