IslamicFinance.de

The Kuala Lumpur-based International Islamic Liquidity Management Corp (IILM) plans to issue $500 million through its sukuk programme in the second quarter of this year. The long-awaited announcement was overshadowed by the unexpected pull-out of Saudi central bank, selling its shareholding to Qatar and Malaysia. According to industry executives, the pull-out would not necessarily deter Saudi commercial banks from buying the IILM sukuk - and that even if it did, demand in other countries would be more than ample. A key factor will be the yield that the IILM sukuk pays versus the cost of funds at individual banks.

The Malaysian government is encouraging takaful operators to invest abroad in order to internationalise its Islamic finance industry. Takaful operators will be allowed to invest abroad without limit, lifting a requirement for them to hold at least 80 percent of assets locally. However, Takaful firms in the country are usually reluctant to invest abroad due to a low risk appetite and lack of expertise. Furthermore, the domestic focus is partly due to ample supplies of sukuk in Malaysia. Another obstacle to internationalisation is the meagre experience of some Malaysian takaful firms. Dependence on local assets, however, has come at a price, with many takaful firms missing their target returns.

The Board of Gatehouse Bank has announced its expansion in South East Asia to cement its growing operations and to ensure its proximity with its key clients, regulators and stakeholders in the region. This follows on from the £165 million acquisition of the law firm SJ Berwin’s offices in London, in collaboration with a Malaysian Sovereign Wealth fund in September 2012. Richard Thomas OBE, will relinquish his current responsibilities as Chief Executive Officer and will take over a new role with the Bank to spearhead this SE Asia business expansion and operations. Mr Fahed Boodai, Chairman has been appointed as interim Chief Executive Officer.

The Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) which are expected to come into force by the middle of this year, would require composite insurers and takaful players to split their life and general insurance businesses under separate licences. Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil said the Act would have an impact not only on talent hiring but also on retaining the existing talent, and would lead to staff pinching, resulting in higher wages but little improvement in productivity and efficiency. According to analysts, the impact would be felt more by takaful operators due to the higher number of composite or dual licences issued to them compared with conventional insurers.

KLCC Property Holdings (KLCCP) expects its KLCCP Stapled Group, the first shariah-compliant stapled real estate investment trust (REIT), to become one of the largest property groups in Asia with a market capitalisation of RM12 billion. Chief Executive Officer Hashim Wahir said the KLCC REIT will house three properties - Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil. The stapled REIT which is the KLCCP shares and KLCC REIT unit will be stapled and will be traded as one security on the Bursa Securities. Upon completion of the restructuring, KLCCP shareholders will own shares and units in KLCCP and KLCC REIT respectively.

Gatehouse Bank announced its expansion in South East Asia following the acquisition of the law firm SJ Berwin's offices in London, in collaboration with a flourishing Malaysian Sovereign Wealth fund in September 2012. Richard Thomas OBE, will relinquish his current responsibilities as Chief Executive Officer and will take over a new role with the Bank to spearhead this SE Asia business expansion and operations. Mr Fahed Boodai, Chairman has been appointed as interim Chief Executive Officer.

Kuala Lumpur-based International Islamic Liquidity Management Corporation (IILM) announced its inaugural short-term sukuk programme aimed at addressing liquidity challenges faced by Institutions that offer Islamic Financial Services. The launch of the programme is pursuant to the granting of an A-1 public rating by Standard & Poor’s Rating Services. The completion of this phase of the programme paves the way for the issuance of the IILM inaugural sukuk which is expected to take place in the second quarter 2013. The sukuk programme will be the first Shariah-compliant US dollar denominated financial instrument in the market to be issued at maturities of up to one year.

Great Eastern Takaful Sdn targets RM20mil of total weighted contribution from its new product, i-Great Idaman. The family Takaful term plan provides biennial cash payout combined with protection. The group expects to get about 5,000 to 6,000 customers within the one year of the launch. According to Great Eastern Takaful chief executive officer Zafri Ab Halim the target market were individuals with middle to high income. He added that the product was suitable for people who already have medical protection and are seeking for other type of offerings.

Islamic finance activity has been growing 14 percent per year, with Islamic finance assets exceeding $1.1 trillion in cumulative value in 2011.Such growth has pushed more educational institutions into creating degree programs in Islamic finance. In 2005, the International Islamic University Malaysia created an Islamic banking institute that offers students Master of Science and doctoral degrees in the subject, among other universities. The classes are aimed at both familiarizing students with the history of Islamic banking products, and encouraging them to think about developing more contemporary services.

Malaysia is dominating global sales of sukuk in 2013 and Standard & Poor’s forecasts the trend will continue this year. Issuance in the Southeast Asian currency may account for more than 74 per cent of worldwide offerings, compared with 49 per cent in 2008. Global sales of Shariah-compliant notes, including government securities, may exceed US$100 billion in 2013 after rising 64 per cent to US$138 billion last year. Malaysia’s Islamic banking assets climbed 14 per cent last year to a record RM494.6 billion. Moreover, Shariah insurers, or takaful operators, saw assets rise 12 per cent to RM19 billion.

Islamic banks in Malaysia and Indonesia are opening new branches in rural areas as they target the newly rich in Southeast Asia’s largest Muslim nations. HSBC Amanah Malaysia Bhd added 22 outlets in the last three years, bringing the total to 26 across the country. PT BRI Syariah, a unit of PT Bank Rakyat Indonesia, will set up 94 branches in 2013 to meet demand in smaller cities. The bank predicts its shariah-compliant savings will increase 73 per cent to a record 19 trillion rupiah (US$1.9 billion). Besides, increasing savings may help spur demand for sukuk as banks look to invest their funds and boost returns.

Kuwait Finance House (KFH Malaysia) has appointed Datuk Seri Abdul Hamidy Abdul Hafiz as its CEO effective today.
Datuk Jamelah Jamaluddin, who has helmed the bank since 2010 as the CEO, would now assume the role of managing director of Kuwait Finance House (Labuan). The changes were part of the group's overall strategy to restructure its business, strengthen its presence in the Asia-Pacific region by focusing on investment banking and fee-based income. Hamidy will grow KFH Malaysia's banking business and fund-based activities, Jamelah will drive the region's capital market, investment banking and fee-based activities for the group.

Talks between BIMB Holdings and the Dubai Financial Group (DFG) over the latter's 30.5% stake in Bank Islam Malaysia have stalled. This is because a long-awaited plan by BIMB to transfer its listing status to Bank Islam is nearing fruition, a prospect DFG finds more attractive than hiving off its interest to pare down debts. The bigger picture, however, is that pilgrim fund Lembaga Tabung Haji, the parent to both BIMB and Bank Islam, is revisiting the idea of a mega Islamic bank involving a merger between BIMB and Bank Muamalat Malaysia. Bank Islam managing director Datuk Seri Zukri Samat said the lender might carry out an initial public offering (IPO) within a year or two.

Bank Islam Malaysia targets its financing segment to grow about 20 per cent to 25 per cent this year. Its Director of Business Development Khairul Kamarudin said the target would be achieved through the introduction of four new products related to technology and microfinancing. He added that all the products will be novelty to the market. However, the bank has not obtain any regulatory approvals yet. Khairul said the bank is also targeting to reduce further its non-performing loan (NPL) ratio and to increase its retail deposits by 15 per cent this year.

· To coordinate the planning process including monthly & quarterly forecast, annual budgets.
· To perform analysis including the development of Key Performance Indicator (KPI) for the Department.
· To monitor the industry trends and identifying growth opportunities.
· To realign and reengineering the department's process flow and facilitate changes whenever required.
· To develop a reporting framework for management and other stakeholders of the Bank.

• To assist in managing RHBIB’s Shariah internal control activities.
• To assist in managing the post approval Shariah review activities on Islamic finance business activities.
• To prepare periodical Shariah Review report which will be submitted to relevant authorities as stipulated in Shariah Framework.

Key Skills Well versed with the Takaful Act and Shariah fundamental.
Responsibilities:
· Report to Business Development Manager, Partnership Distribution
· Responsible to assist in achieving sales deliverables, executing set business plan, focusing on building relationship with partners.
· Undertaking business development activities i.e. new business acquisition and customer retention, rapport building, sales campaign and seminars, incentive program, etc. [...]

· Assist Head of Actuarial and Product Development in carrying out all his duties including statutory and managerial roles
· Ensure all actuarial task relations to new product development and pricing is carried out according to BNM and company guidelines.
· Provide actuarial support to Finance, Operations, Marketing and other departments including external partners
· Train and develop junior staffs

Malaysia Minister of Finance II Y.B. Dato' Seri Ahmad Husni Mohamad Hanadzlah launched "Labuan IBFC Wealth Management Year 2013". He said Labuan IBFC has grown in the last two years, from 2010 to 2012. The total value of assets for banking and leasing sectors, as well as insurance premiums collected by Labuan IBFC licensed institutions, in aggregate grew to USD76.2 billion or RM236.3 billion. This represents an average annual growth of 13.5%. Moreover, the Asian Development Bank recommended LIBFC Foundation as the holding entity to domicile the USD485 million ASEAN Infrastructure Fund in Labuan last year. For the future, the introduction of a broad range of capital market products needs to be facilitated. Furthermore, a competitive investment management industry has to be established.

Strategy and Planning

• Provide expert advice and support to Head, Islamic Banking in relation to Islamic Banking’s financial position and control.

• Ensure that the organisation delivers reasonable returns on shareholders’ capital.

• Understand the needs and functions of Islamic Banking SBUs/SFUs to develop an effective management information system to support the Bank’s goals.

• Oversee the SBU/SFU financial reporting needs and requirements and provide timely and accurate financial information to aid decision making.

• Ensure appropriate cascading of business targets to the SBU.

• Strategic planning and control to help achieve financial goals and targets of the SBU.