ID :
51897
Tue, 03/24/2009 - 07:34
Auther :
Shortlink :
https://oananews.org//node/51897
The shortlink copeid
DON: ISLAMIC FINANCE BEST OPTION TO BRING GLOBAL ECONOMY ON TRACK
By Tengku Noor Shamsiah Tengku Abdullah
KUALA LUMPUR, March 23 (Bernama) -- Islamic financial system is the best option to bring back the global economy to the right track, says Prof Dr Sudin Haron, chairman of the Russian Centre For Islamic Economic and Finance international advisory panel.
"As a result of the global economic crisis, people don't believe in the
conventional system anymore. People believe that as a result of speculation,
manipulation and interest rates, the global financial crisis happened.
"Islamic banking does not believe in these things. We prohibit manipulation
and speculation. Interest rate is totally condemned by Syariah (Islamic
principles).
"So, now people start looking what is the best alternative to
substitute the conventional system," Sudin, a scholar with vast experience in
banking and finance, management and business management, told Bernama in an
interview.
Islamic financial system was one of the options, he said, adding that " it
is the only option to study."
Dr Sudin said many countries have started to acknowledge the importance of
Islamic banking and finance.
For instance, he said, France Finance Minister Christine Lagarde had
announced in December last year that she wanted to see whether regulations or
the legal system in France could accommodate Islamic finance.
Russian Prime Minister Vladimir Putin had said at the World
Economic Forum in Davos, Switzerland, that the world needs to have a new
dimension in the financial system, he said.
Putin had said Russia, being the centre between the West and the East, was
the best country to study "what is the best system to replace the existing
system."
"I can see a huge potential for Islamic banking and finance," said Dr Sudin,
who is also president of the Kuala Lumpur Business School and executive chairman
of Vision Bridge Sdn Bhd.
Dr Sudin said many people are saying Islamic banking "is just a matter of
means
but it is conventional banking."
"They just replace the word "interest" with "profit". To me, it's not the
case. We've to educate the people that the Islamic banking system is far better
than the conventional system.
"This is the task of educators and regulators to explain to the people
the benefit of the Islamic banking system. In whatever scenario, we're better
than the conventional (system). So, education is very important," he said.
Explaining the Islamic banking concept, Dr Sudin said: "The talk in the
market is that as far as the Islamic banking system in the world, we've two
perspectives.
"Number one, people say Islamic banking from Malaysian perspective and
secondly, Islamic banking from the Arab perspective.
"They say Malaysia and the Arab world are quite different in promoting
Islamic banking and finance but for me this is not the case," he said.
Dr Sudin said: "There may be ways we can harmonise the concept and the
system in Malaysia and the Arab countries.
"What we should do is we promote the similarities instead of the
differences between Malaysia and Arab countries," he said.
He said countries like Russia and Commonwealth of Independent States should
see, learn and choose the best system.
He urged the government and the people in power to make sure what Malaysia
offered to the world was acceptable and proven to be a good system.
"We also need to educate them. That's my opinion," said Dr Sudin who was
attached to Bank Negara's Islamic Banking and Takaful Division from 2005 to
2006.
In 2006, he was appointed deputy chief executive of his brainchild project,
the International Centre for Education in Islamic Finance (INCEIF).
Before joining the central bank, he served with Universiti Utara Malaysia
(Northern University Malaysia) in Sintok, northern Kedah-state, both as an
academician and administrator.
He was also involved in the banking sector.
-- BERNAMA
KUALA LUMPUR, March 23 (Bernama) -- Islamic financial system is the best option to bring back the global economy to the right track, says Prof Dr Sudin Haron, chairman of the Russian Centre For Islamic Economic and Finance international advisory panel.
"As a result of the global economic crisis, people don't believe in the
conventional system anymore. People believe that as a result of speculation,
manipulation and interest rates, the global financial crisis happened.
"Islamic banking does not believe in these things. We prohibit manipulation
and speculation. Interest rate is totally condemned by Syariah (Islamic
principles).
"So, now people start looking what is the best alternative to
substitute the conventional system," Sudin, a scholar with vast experience in
banking and finance, management and business management, told Bernama in an
interview.
Islamic financial system was one of the options, he said, adding that " it
is the only option to study."
Dr Sudin said many countries have started to acknowledge the importance of
Islamic banking and finance.
For instance, he said, France Finance Minister Christine Lagarde had
announced in December last year that she wanted to see whether regulations or
the legal system in France could accommodate Islamic finance.
Russian Prime Minister Vladimir Putin had said at the World
Economic Forum in Davos, Switzerland, that the world needs to have a new
dimension in the financial system, he said.
Putin had said Russia, being the centre between the West and the East, was
the best country to study "what is the best system to replace the existing
system."
"I can see a huge potential for Islamic banking and finance," said Dr Sudin,
who is also president of the Kuala Lumpur Business School and executive chairman
of Vision Bridge Sdn Bhd.
Dr Sudin said many people are saying Islamic banking "is just a matter of
means
but it is conventional banking."
"They just replace the word "interest" with "profit". To me, it's not the
case. We've to educate the people that the Islamic banking system is far better
than the conventional system.
"This is the task of educators and regulators to explain to the people
the benefit of the Islamic banking system. In whatever scenario, we're better
than the conventional (system). So, education is very important," he said.
Explaining the Islamic banking concept, Dr Sudin said: "The talk in the
market is that as far as the Islamic banking system in the world, we've two
perspectives.
"Number one, people say Islamic banking from Malaysian perspective and
secondly, Islamic banking from the Arab perspective.
"They say Malaysia and the Arab world are quite different in promoting
Islamic banking and finance but for me this is not the case," he said.
Dr Sudin said: "There may be ways we can harmonise the concept and the
system in Malaysia and the Arab countries.
"What we should do is we promote the similarities instead of the
differences between Malaysia and Arab countries," he said.
He said countries like Russia and Commonwealth of Independent States should
see, learn and choose the best system.
He urged the government and the people in power to make sure what Malaysia
offered to the world was acceptable and proven to be a good system.
"We also need to educate them. That's my opinion," said Dr Sudin who was
attached to Bank Negara's Islamic Banking and Takaful Division from 2005 to
2006.
In 2006, he was appointed deputy chief executive of his brainchild project,
the International Centre for Education in Islamic Finance (INCEIF).
Before joining the central bank, he served with Universiti Utara Malaysia
(Northern University Malaysia) in Sintok, northern Kedah-state, both as an
academician and administrator.
He was also involved in the banking sector.
-- BERNAMA
