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 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.
DEPOSIT OUTSTANDING - MALAYSIA Source: Bank Negara Malaysia
INVESTMENT ACCOUNT or IA (IFSA 2013) • 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” Customers Investment Account (IA) Islamic Deposits • Non-guaranteed Principal-guaranteed Features • • Funds are specified Funds are pooled • • Risk-sharing Risk-transfer • Current Account • • Restricted IA Types Savings Account • • Unrestricted IA Fixed Deposits • • Investment Purpose Custody of funds •
IAP OFFICIAL LAUNCH IAP was officially launched on 17 February 2016 by the former Governor of 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.
www.iaplatform.com
VALUE PROPOSITION TO COMPANIES / SMEs ONE STOP CENTRE FOR ONLINE APPLICATION RATING AS MEDIA PROFILING TESTAMENT OF & MARKET FINANCIAL EXPOSURE STANDING NO DILUTION IN CERTAINTY OF OWNERSHIP FUNDING 8
VALUE PROPOSITION TO INVESTORS RISK STOCKS / EQUITIES REAL ESTATE SUKUK INCOME / SUKUK (+INVESTMENT MONEY MARKET ACCOUNT) / DEPOSIT RETURN 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 ● 9
VALUE PROPOSITION TO SPONSORING BANKS INCOME OPTIMISED COST Savings from Fee-based income brokerage fee & as intermediary capital charge NEW SOURCE RISK OF FUND MANAGEMENT balance sheet & Tap directly from liquidity the market management 10
LANDSCAPE ● Network ● Due Diligence ● Account BANKING Management EXPERTISE ● Total CF world 2018 USD 7 Billion ● Smart data ● Malaysia ● Digital tech ECF - USD 12M ● Agile tech- P2P - USD 74M architecture ● New economics models ● Allow for risk sharing ● Private/ public partnership ● Malaysia as centre of Islamic Finance
SMALL TO MEDIUM ENTERPRISE (SME) FACTS 98.5% 37.1% 66% SMEs by sector: Business Of the Of GDP from establishments in workforce SME Services Malaysia are SMEs from SME 89.2% (809, 126 SMEs) SMEs by size: Manufacturing 5.3% (47, 498 SMEs) 20,612 SMEs Medium, 2.3% Construction 4.3% (39, 158 SMEs) 192,783 SMEs Small, 21.2% Agriculture 1.1% (10, 218 SMEs) 693,670 SMEs Microenterprises, 76.5% Mining & Quarrying 0.1% (865 SMEs) 907,065 establishment Only 27% of SME receive financing facility from Banks Source : FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT 2018 & SME Corp Report
IAP MILESTONES 13 PROJECTS USD50 MIL RAISED OVER 300 INVESTORS 7 PARTNER BANKS 13
IAP STRUCTURE 4 (GOVERNMENT) (2) Disburse fund BANKS Custodian Institution (3) Payment of funds + return (1) Allocate fund & stipulate terms of disbursement 2. List venture CROWD VENTURES GOM & HNW 3. choose venture 1. apply online Parties Current Method Way Forward • • MOF / Allocate funds for target sectors and Allocate funds for target sectors and entrepreneurs GOM entrepreneurs via various Ministries • Provide tax incentives for Investors including HNW • Funds disbursed will not be returned • Get back the funds disbursed (with returns) that can be re-used next year • • Banks With strict lending criteria, only few With MOF’s lending criteria, more ventures can secure funding ventures are able to 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 • More will benefit including those ‘un - bankable’ benefit from the fund • • Crowd / Not involved More likely to invest in the ventures in view of competitive returns and HNW benefit from tax incentive (profit) or tax deduction (loss)
www.iaplatform .com Investment Account Investment Account @IAPIntegrated Platform - IAP Platform
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