COUNTRIES FACING ECONOMIC CRISIS SHOULD CONSIDER ISLAMIC FINANCING, SAYS CIMA

KUALA LUMPUR, July 12 (Bernama) -- Countries facing an economic crisis should consider shifting to the Islamic financial system as a solution to their financing problems, Chartered Institute of Management Accountants (CIMA) Chief Executive Officer Charles Tilley said Tuesday.

He said the Islamic financial system offers lower interest rates than the conventional system implemented in most developed countries.

"The economic crisis in developed countries these days are mainly caused by poor debt management and high loan interest rates.

"The lower interest offered under the Islamic financial system will actually help these countries reduce their debts," he told reporters after the signing of a memorandum of agreement between CIMA and Universiti Utara Malaysia (UUM) here.

Under the agreement, UUM students undergoing the Bachelor of Accounting (Honours) programme will acquire their degree and the CIMA Professional Qualification in Management Accounting simultaneously upon graduation.

UUM Vice Chancellor Prof Dr Mohamed Mustafa Ishak said through this
programme, students would be able to save time by not having to wait to graduate first before being allowed to sit for the CIMA professional qualifying examination.

"The chartered accountant qualification is currently awarded automatically to Malaysian graduates after three years of experience within the industry.

"During that period, most fresh graduates usually tend to change lines due to the difficulty in finding a job that match the certification," he said.

He said the university was also looking at a possible collaboration between the UUM School of Islamic Business and CIMA, but it needed further discussion to realise the plan.