MALAYSIAN PM SUGGESTS MUSLIM NATIONS HAVE NEW ECONOMIC MODEL

KUALA LUMPUR, May 19 (Bernama) -- Prime Minister Najib Tun Razak
has proposed Muslim nations have a new economic model designed to meet specific
needs of the Islamic world.

He suggested that the model should be underpinned by a theoretical framework
that should not only be inclusive and progressive but also practical with regard
to policy formulation and implementation.

"In line with the concept "Gearing for Economic Resurgence", the theme
of the Sixth World Islamic Economic Forum (WIEF), I propose that we plan as an
entire ecosystem.

"We need to think anew and move beyond our conventional frameworks. This may
require a new economic model for the region, if necessary, that is designed to
meet the specific needs of the Muslim world," he said in his keynote address at
the opening ceremony of the forum here Wednesday.

Najib said the new economic model needs broad support, taking into account
the
requirements of the Organisation of the Islamic Conference (OIC) countries.

Najib, who is also WIEF Foundation patron, also suggested that it was timely
for Muslim nations to consider holding an OIC Economic Summit in collaboration
with the Islamic Summit Conference.

"In this way, we can focus on pressing economic issues and ways to expedite
decisions and actions on behalf of the Muslim world. A dedicated, issue-
oriented summit of this type would breathe new life and meaning into the OIC and
overcome any cynicism towards it," he said.

On Islamic finance, Najib said Muslim countries must continue to play a
leading role in transforming the sector from being considered as niche banking
into something that is widely accepted as central to long-term economic
stability around the world.

He said the right conditions that need to be put in place include an
appropriate regulatory framework and an infrastructure and architecture that
promote Islamic capital markets.

"Islamic finance and banking must be systematically put in place with the
involvement of all stakeholders. It will require getting a higher level of
acceptance of ethical banking as a norm in modern day banking.

"The time is right for this. We see positive trends prevailing for the
development of Islamic finance. In some countries, growth is as much as 10 to 15
per cent annually. This is indeed most encouraging and deserves full government
support within the OIC countries," he said.

Najib said Islamic financing could serve all -- from small entrepreneurs
through micro-financing to large corporations through sophisticated instruments
from Islamic capital markets.

He also said Malaysia was prepared to share its experiences and expertise
to
spur Islamic finance development on a worldwide basis.

"Here in Malaysia, we have spent 30 years developing Islamic finance. I am
pleased to say we have successfully developed it in parallel with our
conventional banking system.

"It's clear that Islamic finance can co-exist and thrive alongside
conventional banking system and it should be promoted further," he said.

Najib also said effective capital deployment was required to spur growth and
productivity and to support the development of the Muslim Ummah.

"In this regard, I urge the private sector to take the initiative to
mobilise capital through Islamic equity initiatives from regional and global
sources and to deploy this capital productively to ensure an appropriate return
for investors," he said.


On halal market, Najib said linkages must be established between regional
hubs to ensure coordination and standardisation of halal products.

Such linkages would enable efficient sourcing and deployment of halal
products by donor countries and non-government organisations when Muslim
communities face natural disasters, he added.

-- BERNAMA



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