Kuala Lumpur, 28 May 2024 –Prime Minister Dato’ Seri Anwar Ibrahim today made a strong call for values-based reforms to bolster global economic resilience, saying the government would continue to steadfastly support Islamic social finance initiatives in Malaysia.

“The time has come to chart a reinvigorated and reformed course within the Islamic economy towards a future defined by greater inclusivity, equality, opportunity, and shared prosperity. One which no longer accedes to archaic economic orthodoxies, which prioritise growth and material pursuits over quality of life, while glorifying profit maximisation and treating labour as a commodity rather than with compassion,” he said when officiating the 2-day Global Forum on Islamic Economics and Finance in Kuala Lumpur.

Prime Minister also announced two new blended finance innovations including Projek Hasan, a collaboration between INCEIF, Lembaga Zakat Negeri Kedah(LZNK) , MIFC Leadership Council and Association of Islamic Banking and Financial Institutions Malaysia.

The project will upscale zakat initiatives to elevate the socioeconomic conditions of the asnaf in Kedah. Through this collaboration, RM10 million is targeted not only to strengthen the asnaf community but also improve the direct benefits of harvest for the paddy farmers.

INCEIF University, together with its collaborative partners The Kedah State Zakat Board (LZNK), MIFC Leadership Council (MLC) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), extends the deepest gratitude to Prime Minister Datuk Seri Anwar Ibrahim for recognising the collaborative initiative between LZNK, MLC, AIBIM and INCEIF, known as ‘Projek Hasan’.

Under Projek Hasan, LZNK will collaborate with the involved agencies including INCEIF to further expand the Smart Large-Scale Paddy Project for Asnaf (Smart SBBA), which has been implemented since 2020. LZNK has implemented the Smart SBBA initiative on 201.7 hectares of land in the districts of Yan, Kuala Muda, Kubang Pasu, and Kota Setar, cultivated by selected participants from among the local asnaf, the poor and needy.

The main goal of this project is to improve the socio-economic conditions and living standards of local communities, particularly the asnaf and B40 groups in Kedah. Additionally, it aims to create diverse economic opportunities for the asnaf community, enabling them to transition from village laborers to agricultural entrepreneurs, and take on other roles such as factory workers and food stall operators.

INCEIF’s role in the collaboration focusses on the research and development of the blended Islamic finance & Islamic social finance tools such as waqf and zakat to upscale the project.

GFIEF, under the patronage of the Ministry of Finance Malaysia, was organised by Bank Negara Malaysia in collaboration with the Securities Commission Malaysia, Labuan Financial Services Authority, the International Islamic Liquidity Management Corporation, the Islamic Development Bank, the Islamic Financial Services Board and the World Bank Group. INCEIF is one of the Knowledge Partners of GFIEF.

Themed ‘Shaping a Resilient Global Islamic Economy Through Values-based Reforms’, GFIEF gathered over 1,000 policymakers, business leaders, and financial service providers from all around the world to engage in discussion and collaborate to build a future where Islamic economics and finance could play a pivotal role in fostering shared prosperity and equity.

INCEIF also held pre and post GFIEF events throughout the week:

• Masterclass on `Advancing Financial Inclusion through Islamic Social Finance’ by Associate Dean Prof Dr Aishath Muneeza where 47 participants explored how Islamic Social Finance promotes inclusive economic growth and addresses financial exclusion.
• Roundtable Discussions on the Future Economy hosted by INCEIF and International Islamic University Malaysia brought together scholars, policymakers, and practitioners to evaluate and innovate educational and healthcare frameworks through Islamic Economics and Finance, with the aim to address economic complexities and global challenges.
• Launch of Dr Yusuf Al-Qaradawi’s English translated book “The Role of Values and Ethics in the Islamic Economy” by Minister of Finance II Datuk Seri Amir Hamzah Azizan, followed by the book’s review forum.
• Launch of the “ESG-i Assessment Framework” which combines Shariah principles with sustainability goals, benefiting small businesses, followed by discussion on promoting sustainability among MSMEs by industry experts. Co-organised by ISRA RMC and Ficus Capital, the world’s first Shariah compliant venture capital firm.

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