Huge potential for Islamic finance in ASEAN

MSMEs can be energized utilizing Islamic finance.

Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Center of Islamic Banking and Economics, believes there are multiple opportunities in the Association of Southeast Asian Nations (ASEAN) to promote Islamic finance. He said the Islamic finance and halal industry complement each other. Micro and small medium enterprises (MSMEs) can be energized through Islamic finance, helping reduce poverty and promote socio-economic prosperity in ASEAN. He noted that over 40% of ASEAN’s population or 240 million persons are Muslims.

This, he said, is a potential indicator for Islamic finance. Malaysia, Indonesia and Brunei Darussalam already have significant contributions in Islamic banking, takaful, sukuk and Islamic funds. The Philippines and Thailand are being considered as future potential markets for Islamic banking and finance in ASEAN.