Labuan International Business and Financial Centre (Labuan IBFC) has unveiled its international waqf foundation, the first Islamic foundation designed with an international market in mind, strengthening its position as an international Islamic wealth management centre.
Labuan IBFC CEO Saiful Bahari Baharom said: "Labuan IBFC is Asia’s only midshore jurisdiction with conventional and Islamic wealth management solutions. Capitalising on this strength, the Labuan Financial Services Authority (Labuan FSA) established a waqf using widely-recognised foundation and trust laws, giving it greater international standing and appeal. It is our hope that the Labuan international waqf foundation will be taken up by the Muslim community in both Malaysia and abroad."
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The waqf was unveiled at the Labuan IBFC and BNP Paribas – INCEIF Centre for Islamic Wealth Management (CIWM) annual Islamic Wealth Management Symposium that is aimed at raising awareness of Islamic wealth management, particularly Islamic trusts and foundations.
BNP Paribas – INCEIF CIWM director Professor Dr Shamsher Mohamad said: "Waqf is the least exposed aspect of Islamic wealth management. It has great potential to spur economic growth and help develop the nation. History has provided us with evidence on how the waqf system can generate revenue to support education, welfare and even hospitals in Turkey and Egypt. The waqf is still functioning effectively today.
"In Malaysia, we have the potential, being a predominantly Muslim country, but need the support of the people and political commitment to make waqf a successful and complementary part of our nation’s economic support system. The Islamic Wealth Management Symposium 2015 is one of the many series of events planned and organised by CIWM to create awareness and seek ideas to lay the foundation to develop effective waqf structures in the country. There are many challenges ahead, but nothing is impossible, God willing."
The Symposium addressed a number of issues pertinent to the future growth of Malaysia’s Islamic wealth management industry, including:
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By GlobalData-Malaysia’s role in developing a global wealth management industry;
– The need for a more diversified Shariah-compliant investment product range;
– How Malaysia can better service the growing Islamic high-net-worth client base;
– The merits of establishing an international waqf foundation.
