Malaysia Playing Crucial Role In Forging Ties Between China & OIC

By Samantha Tan Chiew Ting BEIJING, March 22 (Bernama) -- Malaysia, with its leadership position in the development of Islamic finance, is playing a crucial role in forging good relations between China and the Organisation of Islamic Cooperation's (OIC) 57 member countries. Malaysia's Second Finance Minister Ahmad Husni Hanadzlah said Malaysia can bring China and the OIC together under China's, " One Belt, One Road" initiative. Collectively, the OIC is one of the largest economic blocs after the United States, China and the European Union, with a combined gross domestic product (GDP) of US$6 trillion in 2015, representing 8.1 per cent of world's GDP. "Cooperation in areas of finance is critical to fund the 'One Belt, One Road' initiative. "The network includes the world's main centres of Islamic finance, the Middle East and Southeast Asia, where shariah-compliant assets are in great demand," he added. Ahmad Husni was speaking to reporters after delivering his keynote address at the China-OIC Forum, jointly organised by the Islamic Corporation for the Development of the Private Sector (ICD) and Islamic Development Bank (IDB), here Tuesday. He said Malaysia had much to offer as Islamic finance in the country had developed into a comprehensive and sophisticated marketplace. "Our marketplace has a robust regulatory, supervisory, Shariah and legal framework, a deep primary market and active secondary sukuk market. "With this, Malaysia can offer its expertise and access to global industry players and market participants," he added. According to Ahmad Husni, Malaysia can also provide a leadership role in terms economic planning and strategy, development of the private sector, Islamic finance and the halal industry. "Geographically, many OIC member countries are situated within the proposed routes of the 'One Belt, One Road' initiative and require infrastructure development and capacity building, which China can readily provide," he said. He also said with a huge Muslim population in China, there are other segments that can be tapped, namely in the halal industry, as well as Islamic banking and finance. He said internationalisation of the Chinese yuan is important to facilitate cross border trade and will also serve to further deepen regional economic cooperation. "Malaysia is currently one of the world's top 10 offshore yuan centres and the second country in Southeast Asian, after Singapore, to host a yuan (China's currency) clearing bank," he added. --BERNAMA