ZAHID URGES M'SIAN FIRMS TO EXPAND INTO OIC COUNTRIES

SHAH ALAM (Malaysia), Nov 19 (Bernama) -- Minister in the Prime Minister's Department Dr Ahmad Zahid Hamidi Wednesday urged local firms involved in Islamic based businesses to expand their business to the member countries of the Organisation of Islamic Conference (OIC).

The Islamic business and financial market offers an alternative venue for
Malaysian companies in the midst of the challenges brought by the current global
financial crisis, he said in his keynote address at the launch of the
International Islamic Hub in i-City, the 29-hectare digital township
here.

"In view of this, it is timely for all business sectors to look into the
possibility of using Islamic instruments and Islamic financial institution
services in place of the present conventional financial instrument and banking,"
Dr Ahmad Zahid said.

He said the recent global financial meltdown had illustrated the need for a
system based on profit sharing principle, where both parties in a contract are
subjected to potential losses and returns, something which is underlined under
the Islamic business principles.

Under the Islamic system, both parties would have a win-win situation as
losses would not burden only one party, he pointed out.

He said many of the OIC economies were showing strong fundamental growth
potential and were increasingly becoming part of the global emerging markets,
while a variety of existing and new forums have been established to promote OIC
based corporate interaction and to help leverage trade opportunities.

Malaysia recently organised the World Islamic Tourism Conference and Expo
2008 and played its role in the establishment of the International Centre for
Education in Islamic Finance in this country to overcome the shortage of
finance staff with Syariah knowledge.

Dr Ahmad Zaid today also commended i-City for taking the initiative to
engage with the OIC community.

"Its strategic alliance with Al Rajhi Banking Group in its cybercentre
office development is a reflection of the opportunities that are available with
the OIC member countries," he said.

He said Malaysia was also unique in its promotion of Islamic financial
products as it marketed them both in the English and Bahasa Malaysia language,
and where the non-Muslims understood them, unlike other countries where the
products were promoted mostly in Arabic.

Dr Ahmad Zahid also said he had advised Islamic scholars here not to use
difficult Arabic words like Bai Bithamin Ajil in promoting Islamic based loans
but to simplify the terms to BBA for example, so as not to "scare" the
people.

He also called on Muslims and non-Muslims to do away with their differences
and work together to promote Islamic financial products as one did not have to
be a Muslim to promote Islamic products.

Meanwhile, the director of I-Bhd, Eu Hong Chew, said in his presentation
Wednesday that the company has set aside two hectares from its total development
area of i-City for the international Islamic hub.

The hub will consist of an Information Communication Technology Centre for
OIC countries, Islamic Financial Education Centre, Support Centre for Halal
Product Logistic and Islamic Resource Centre.

Eu said the centres will help in the development of Islamic knowlegde based
economy as they would provide cost effective operations and provide the
environment for innovation of new ideas in the development of Islamic business
and finance sectors.

The centres are expected to cost around RM800 million and their completion
would be between three and four years.

i-City which is developed by I-Bhd provides high speed broadband
connectivity at 20 megabit per second, and its features include a backup power
supply system, data centre and fibre optics interconnectivity among the
buildings. Among its other facilities will be a shopping mall, hotel and office
towers.