M'SIA WELL POSITIONED TO PROVIDE ISLAMIC BANKING SERVICES IN EUROPE

Premalatha Jayaraman

KUALA LUMPUR, July 11 (Bernama) -- Malaysia, recognised internationally for
its vast experience in Islamic finance, is well positioned to provide services
and facilities related to Islamic banking in Europe.

"This is a potential area that we have yet to develop with Europe. We
need to move away from the thinking that Islamic banking must only be in the
Middle East or among Arab, muslim countries," said Malaysia's ambassador to
Brussels, Datuk Hussein Hanif.

"It goes beyond that.Following the recent financial crisis, developed
countries are acknowledging Islamic banking," Hussein told Bernama in an
interview recently.

Hussein said Bank Negara can play a role by having an exchange of visits and
discussions with its counterparts in Europe on Islamic banking.

Malaysian banks, like Maybank and CIMB, already have representatives in
London, he said, adding that these banks can collaborate with those in Europe to
expand services in Islamic banking.

"The clientele for Islamic banking is not confined to just Muslim countries
but spread all over Europe, the United States and the Far East," he highlighted.

He said Islamic banking continues to grow at a rapid pace because it is
value-oriented and this enables it to draw funds from both Muslims and
non-Muslims.

Today, more than 250 Islamic financial institutions are operating worldwide.


There are more than 14.74 million Muslims in Europe, of which 1.8 million
are resident in the United Kingdom (UK), plus an additional 72 million in
Turkey.

The UK is the first country in Europe to promote and encourage retail
Islamic banking. It is also in the process of embracing Islamic financial
techniques by introducing new laws to facilitate further market entry.

Apart from Islamic finance, Hussein said the demand for halal food is
increasing in Europe and it can be an important area for Malaysia to tap into.

He explained that Malaysia is well positioned to be the centre for the
promotion, distribution and production of halal food, non-food products and
other services.

"Europeans prefers our products because of the better quality," he said.

"If you look at halal food, it is in compliance with the health and safety
requirements of any other western country," he said.

He said there is potential, alongside a misconception that halal food is
only for muslims.

Halal food is also marketable to non-muslims, he added.

According to Hussein, the halal standard does not cover just food but has
also rules regarding the transporting, packaging, labelling and logistics.

The total trade between Malaysia and the European Union (EU) amounted to
US$41 billion last year.Exports to the EU totalled US$22.5 billion while imports
from the grouping was US$18.5 billion.
-- BERNAMA