TURKEY'S ASYA BANK SEEKS MALAYSIA'S COOPERATION TO UNDERTAKE ISLAMIC FINANCE

KUALA LUMPUR, Nov 2 (Bernama) -- One of Turkey's biggest financial
institutions, the Asya Bank, has indicated an interest in forging cooperation
with Islamic banks in Malaysia, namely Maybank Bhd and CIMB Bank.

The aim is to establish an Islamic Bank in Turkey.

"Although Turkey was once an Islamic superpower, it now needs our assistance
in implementing the system of Islamic finance," said Second Finance Minister,
Ahmad Husni Hanadzlah.

He said this in his speech while officiating the 6th Kuala Lumpur Islamic
Finance Forum here Monday.

Also present was the Halal Industry Development Corporation (HDC) chief
executive officer, Jamil Bidin.

Asked whether the collaboration would be in terms of just the sharing of
expertise or a joint venture, he said it could be one or both.

"It depends on the rules and regulations of the Turkish banking industry,"
he added.

Husni also said that he would personally send letters to both Maybank and
CIMB to inform them of Asya Bank's collaboration interest.

He said the advent of Malaysia as the leader in Islamic finance should be
taken full advantage of by local financial institutions to expand the business
overseas.

"The best way for them to spread their wings overseas is to establish joint
ventures. In this way, the responsibility of risk can be minimised with returns
in respect of brand introduction and market intelligence obtained.

"With the first mover advantage, Malaysian financial institutions can
capture markets which were previously not filled, by moving overseas," he said.

Husni highlighted that other countries such as Hong Kong, the United Kingdom
and Singapore are fast growing their Islamic Finance sector.

"Malaysia should not lose out as we were the first to take it up," he said.

He also stated that Malaysia was the pioneer in starting the halal industry
in the context of a modern industrial network.

"Unfortunately, this early momentum was lost and now we find our neighbours
aggressively entering the international halal market.We have conceded the first
mover advantage," he said.

Husni said to return the momentum to Malaysia's halal industry, the
government will restructure the HDC.
-- BERNAMA