ABAC To Conclude Broad Islamic Infrastructure Investment Platform

KUALA LUMPUR, May 10 (Bernama) -- The APEC Business Advisory Council (ABAC) hopes to conclude an agreement on a broad Islamic Infrastructure Investment Platform (I3P) for the upcoming APEC Finance Ministers' Meeting in October. ABAC Malaysia lead member Azman Hashim said the 13P agreement is expected to be concluded during a workshop on the sidelines of the ongoing Global Islamic Finance Forum (GIFF) 2016. He said the agreement would be included in the ABAC's recommendations to the 23rd APEC Finance Ministers' Meeting in Peru, Lima this year. "The discussion in this workshop will also see the formation of a network of public and private sector experts and institutions that can collaborate to accelerate the mobilisation of Islamic finance to fund the region's infrastructure needs," he said. Azman, who is also co-chair of ABAC Finance and Economics Working Group, was speaking at the 'Asia-Pacific Financial Forum: Workshop on Developing an Islamic Infrastructure Investment Platform' in conjunction with the three-day GIFF 2016 here which ends Thursday. He said infrastructure needs in Asia and the Pacific were huge and would continue to rise over the next decade. "According to McKinsey's estimates, US$57 trillion is needed in infrastructure investments. Islamic finance has gained traction around the world to bridge this financing gap and fund long-term development projects," he added. Azman said the APEC Finance Ministers' Meeting last year called on APEC officials to collaborate with the private sector to establish I3P to facilitate the mobilisation of capital in Islamic institutions to fund infrastructure across the region. He pointed out that sukuk and other Islamic finance instruments represented a small portion of Asia's overall financial market. "The industry potential can only be tapped if there is a strong drive to adopt an appropriate regulatory regime, coupled with market and product innovation and diversification," he said. Meanwhile, Deputy Finance Minister Johari Abdul Ghani said I3P would provide a platform for collaboration among public, private, international and academic experts to address key obstacles and to promote the expansion of cross border investments by Islamic finance institutions. "I do envision that I3P will be one of the policy initiatives under the APEC Finance Ministers' Process and I would like to invite the Asian Development Bank and the World Bank Group to support the initiatives," he added. -- BERNAMA