BUSINESS

POSITIVE DEVELOPMENT IN UNDERSCORING SIMILARITIES BETWEEN ISLAMIC FINANCE AND ESG IN MALAYSIA

26/11/2021 05:38 PM

KUALA LUMPUR, Nov 26 -- There are positive developments in underscoring the similarities between the principles of Islamic finance and Environmental, Social and Corporate Governance (ESG) in Malaysia.

Jersey Finance, which champions and represents the award winning global international finance centre (IFC) in Jersey, recently launched a landmark study on global attitude towards Islamic finance wealth management.

According to the centre, evidently, the increasing traction for responsible investing can potentially serve as a stepping stone for a heightened appeal towards an inclusive and codified approach among the high-net-worth individuals (HNWI) investors.

The report outlines several common issues facing the Muslim HNWIs globally such as the transition of wealth from one generation to the next, sustainable finance, as well as the need for good corporate governance, it said.

Director for the Middle East, Africa and India Faizal Bhana said the study provides unique insights into the evolving needs of Muslim’s HNWI around the world, and highlights what private wealth managers, financial services providers and international jurisdictions need to do to meet those needs.

He said with 76 per cent of respondents having explored trusts as an important structure in succession planning, Malaysia, Jersey and other globally recognised IFCs were well-positioned to further support the needs of these individuals.

“As the world recovers from the pandemic, long-term financial and wealth management is very much needed to open the doors of opportunities for holistic recovery.

“Jersey, like Malaysia, has a wealth of experience in Shariah compliance, succession planning and asset protection, placing us in the top rank for jurisdictions, supporting the international needs of Muslim family offices, ultra-high-net-worth and high-net worth individuals,” he shared.

The centre said among the key findings of the Global Attitudes to Islamic Wealth Management report were 96 per cent of Muslim HNWIs were actively planning or preparing for wealth succession, with over half planning to seek tax advice, and nearly two-thirds seeking Shariah-compliant advice.

The Islamic finance investor base is becoming ever more sophisticated, demanding greater professionalism from financial service providers, while continuing to adhere to Shariah principles, it added.

It also noted that the United Kingdom continues to rank as the main staple jurisdiction for Muslim HNWI investors -- thanks to its legal framework, superior property rights, and inherent compatibility with Islamic law, including for financial transactions and wealth succession.

Meanwhile, Jersey is favoured by Muslim HNW families and family offices for these services, especially investment trusts, it added.

-- BERNAMA

 


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