www.iaplatform.com Kuala Lumpur GLOBAL ISLAMIC ECONOMY Source: - - PowerPoint PPT Presentation

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www.iaplatform.com Kuala Lumpur GLOBAL ISLAMIC ECONOMY Source: - - PowerPoint PPT Presentation

Dec 25, 2022 49 likes •210 views

Investment Account Platform (IAP) www.iaplatform.com Kuala Lumpur GLOBAL ISLAMIC ECONOMY Source: State Of The Islamic Economy Report 2018/19 ISLAMIC FINANCE Sukuk is an Islamic financial certificate that complies with Islamic religious

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Investment Account Platform (IAP) www.iaplatform.com Kuala Lumpur

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Source: State Of The Islamic Economy Report 2018/19

GLOBAL ISLAMIC ECONOMY

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ISLAMIC FINANCE

  • Sukuk is an Islamic financial certificate

that complies with Islamic religious law.

  • Breakdown of Islamic Finance Assets in

2016.

  • Islamic banking in Asia has seen a

growing number of new entrants, either by way of capitalising on conventional setups or new institutional setups.

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DEPOSIT OUTSTANDING - MALAYSIA

Source: Bank Negara Malaysia

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  • Islamic

Financial Services Act 2013 recognizes IA as another instrument for Islamic banks to source funds from the public

“An account under which money is paid and accepted for the purposes of investments, including provision of finance, in accordance with Shariah on terms that there is no express or implied obligation to repay the money in full and (a) either only the profits or both the profits and losses (b) with or without any return”

Islamic Deposits

  • Principal-guaranteed
  • Funds are pooled
  • Risk-transfer

Investment Account (IA)

  • Non-guaranteed
  • Funds are specified
  • Risk-sharing

Customers

  • Current Account
  • Savings Account
  • Fixed Deposits

Features

  • Restricted IA
  • Unrestricted IA

Types

  • Custody of funds

Purpose

  • Investment

INVESTMENT ACCOUNT or IA (IFSA 2013)

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IAP was officially launched on 17 February 2016 by the former Governor

  • f BNM, Tan Sri Dr Zeti Akhtar Aziz.

Key Point 1 New risk-reward concepts via investment account to benefit investors and entrepreneurs. Key Point 2 As an internet-based multibank platform, IAP provides an efficient mobilisation of funds.

IAP OFFICIAL LAUNCH

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www.iaplatform.com

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VALUE PROPOSITION TO COMPANIES / SMEs

ONE STOP CENTRE FOR ONLINE APPLICATION MEDIA PROFILING & MARKET EXPOSURE NO DILUTION IN OWNERSHIP CERTAINTY OF FUNDING RATING AS TESTAMENT OF FINANCIAL STANDING

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VALUE PROPOSITION TO INVESTORS

Investment is tagged against the Bank’s core business i.e. financing to businesses which has the following characteristics:

  • Competitively priced above Bank’s cost of fund (COF) or base financing

rate (BFR)

  • Robust screening, account management and collection process
  • MONEY MARKET

/ DEPOSIT SUKUK INCOME / SUKUK (+INVESTMENT ACCOUNT) REAL ESTATE STOCKS / EQUITIES RISK RETURN

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VALUE PROPOSITION TO SPONSORING BANKS

INCOME Fee-based income as intermediary OPTIMISED COST Savings from brokerage fee & capital charge NEW SOURCE OF FUND RISK MANAGEMENT balance sheet & liquidity management Tap directly from the market

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  • Total CF world

2018 USD 7 Billion

  • Malaysia

ECF - USD 12M P2P - USD 74M

  • Network
  • Due Diligence
  • Account

Management

  • Smart data
  • Digital tech
  • Agile tech-

architecture BANKING EXPERTISE

  • New economics models
  • Allow for risk sharing
  • Private/ public partnership
  • Malaysia as centre of Islamic Finance

LANDSCAPE

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98.5% Business establishments in Malaysia are SMEs Only 27% of SME receive financing facility from Banks Medium, 2.3% Small, 21.2% Microenterprises, 76.5% SMEs by size: 20,612 SMEs 192,783 SMEs 693,670 SMEs 66% Of the workforce from SME

907,065 establishment

SMEs by sector: Services

89.2% (809, 126 SMEs)

Manufacturing

5.3% (47, 498 SMEs)

Construction

4.3% (39, 158 SMEs)

Agriculture

1.1% (10, 218 SMEs)

Mining & Quarrying

0.1% (865 SMEs)

Source : FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT 2018 & SME Corp Report

37.1%

Of GDP from SME

SMALL TO MEDIUM ENTERPRISE (SME) FACTS

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IAP MILESTONES

OVER 300 INVESTORS 13 PROJECTS USD50 MIL RAISED 7 PARTNER BANKS

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Custodian Institution (2) Disburse fund (3) Payment of funds + return (1) Allocate fund & stipulate terms of disbursement VENTURES CROWD & HNW BANKS Parties Current Method Way Forward MOF / GOM

  • Allocate funds for target sectors and

entrepreneurs via various Ministries

  • Funds disbursed will not be returned
  • Allocate funds for target sectors and entrepreneurs
  • Provide tax incentives for Investors including HNW
  • Get back the funds disbursed (with returns) that can be re-used next year

Banks

  • With strict lending criteria, only few

ventures are able to secure funding

  • With MOF’s lending criteria, more ventures can secure funding
  • To invite crowd / HNW to invest in the ventures by sharing the returns
  • Drawdown less funds per venture basis thus more will benefit

Ventures

  • Most are ‘un-bankable’ thus will not

benefit from the fund

  • More will benefit including those ‘un-bankable’

Crowd / HNW

  • Not involved
  • More likely to invest in the ventures in view of competitive returns and

benefit from tax incentive (profit) or tax deduction (loss)

GOM

  • 2. List venture
  • 3. choose venture
  • 1. apply online

IAP STRUCTURE 4 (GOVERNMENT)

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Investment Account Platform - IAP @IAPIntegrated Investment Account Platform

www.iaplatform .com

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THANK YOU