NEED FOR STANDARDISED ISLAMIC BANKING WORLDWIDE

From Ahmad Kamil Tahir

DOHA, Jan 22 (Bernama) -- Malaysian Prime Minister Abdullah Ahmad Badawi
Wednesday made a call to the Islamic banking sector worldwide, saying that there
was a need to standardise in terms of practices and principles adopted so that
it will be more easier for the people to understand the system.

He said this was among the issues he had discussed during his meet with the
Prime Minister of Qatar Sheikh Hamad bin Jasim bin Jabir Al-Thani where both
leaders agreed that efforts were needed to increase the acceptance of Islamic
financing and banking especially in the countries where the system is used.

"It will be really great if all the Islamic banks used the same standard,
practices and principles when resolving a problem.

"If the Islamic banking system moves in different directions it will be more
difficult for the people to accept or understand it," he told reporters before
ending his two-day official visit to Qatar.

He said Qatar had also suggested that Malaysia be a driver in the
standardising of the Islamic banking system by organising discussion sessions
that will bring together officers and experts from the countries practising the
system.

Abdullah said Qatar and Malaysia had also agreed to jointly invest in third
world countries particularly in the agriculture and halal food industries.

He said Qatar had also indicated its readiness to invest in Malaysia.

Meanwhile, in his address when opening the "Malaysia-Qatar Business
Opportunities" forum here, Abdullah said Qatar has embarked on an economic
diversification programme to reduce its dependence on oil revenues and huge
investment had been made in infrastructure real estate and tourism.

"These developments present significant opportunities for Malaysian
companies and I note that Malaysia already has a strong presence in Qatar such
as construction, oil and gas and the provision of professional consultancy
services."

Abdullah said major Malaysian companies such as Sime Darby Engineering, UEM
Builders, Gamuda Bhd, Muhibbah Engineering and the Holiday Villa Hotel Group
are involved in projects valued at more than US$3 billion.

The Prime Minister said trade between Malaysia and Qatar has grown
progressively over the past decade rising from US$45 million in 1998 to
US$319.68 million in 2007.

During that period, he said Malaysia's export to Qatar increased from
US$36.5 million to US$295.8 million and imports increased from US$8.5 million to
US$23.7 million.

As of November last year, Abdullah said the trade volume reached US$503.8
million, an impressive increase of 59 per cent from 2007.

Abdullah said Malaysia and Qatar can take the advantage of OIC links and use
the mechanism it has developed to promote trade among OIC members.

He said trade and investment between the two nations can also be enhanced
through the mechanism of a free trade agreement.

Malaysia recently proposed to the Gulf Cooperation Council (GCC) to
commence negotiations to conclude a free trade agreement with Malaysia.

"I understand that the business communities from both sides welcome this
proposal. We hope that negotiations will begin soon and a mutually
beneficial agreement reached in the near future," Abdullah added.

A total of 32 Malaysian representatives from the Malaysian public and
private sector attended the forum where they discussed various trade and
business opportunities with their Qatari counterparts.
-- BERNAMA