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The Islamic Bank of Asia Limited Singapore: The Fulcrum of Islamic - - PowerPoint PPT Presentation
The Islamic Bank of Asia Limited Singapore: The Fulcrum of Islamic - - PowerPoint PPT Presentation
The Islamic Bank of Asia Limited Singapore: The Fulcrum of Islamic Finance Development Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to
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Bahrain
Islamic Finance Asset Size: US$1 trillion Middle East: 50% Far East: 25% China: 1.3 bn pop GDP: US$2,668bn India: 1.1 bn pop GDP: US$906bn
2 hours 3 hours 4 hours 5 hours 7 hours
SE Asia: 568 m pop GDP: US$1073bn
Singapore: At The Heart of Asia – The Fulcrum of M-East and F-East
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Singapore: A Strategic Hub for Islamic Finance
28,000 International Companies: 11,200 NA, Europe, Japan 1,900 China 1,900 India 1,500 Australia & New Zealand 7,500 Rest of Asia 4,000 Rest of the World
The status of Singapore as a regional financial hub is an opportunity for Islamic finance…. ….to become a significant alternative financial solution regionally and globally.
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- urc e : MAS
Asse t Manage me nt S urve y 2006
S$ Bn 276 307 344 465 573 720
2000 2001 2002 2003 2004 2005 2006
891
F
- r
e ign Companie s 37% Singapore Companie s 63%
SGX listing – With a market cap of circa S$800billion, this is the choice of good corporations to tap equity.
Singapore: A Strategic Hub for Islamic Finance
Singapore has built a reputation as a credible and transparent financial centre, which is exactly what Islamic finance needs to shed its image as a “niche” solution.
Growing AUM – A sign of confidence
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157 Banks 153 Insurance Companies 97 Fund Managers 77 Securities Dealing 67 Financial Advisors 62 Insurance Brokers 40 Futures Trading 36 Corporate Finance 3 Finance Companies
1 Islamic Bank
Singapore: Almost 700 Financial Institutions
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Singapore: Still No. 3 Financial Centre (Mar 09)
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Singapore: Financial Sector Growth 1974- 2007
Banking Assets 1974 Aug 2007 S$36 billion S$1.79 trillion Stock Market Capitalisation 1975 Oct 2007 S$14 billion S$824 billion FX Average Daily Turnover 1974 Sep 2007 S$0.8 billion S$344 billion Asset Management 1990 2006 S$18 billion S$891 billion Singapore Government Securities Market 1987 Oct 2007 S$4.5 billion S$96.3 billion
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Singapore: Islamic Finance Milestones
- MAS became a member of IFSB
- Banks allowed to undertake Commodity
Murabaha for both financing and deposit taking
- Removal of double stamp duties in Islamic
transactions involving real estate
- FTSE-SGA Asia Shariah 100 Index launched
- GST and Income Tax Act have been amended
to cater for Islamic finance transactions
- Sukuk enjoys similar concessionary tax as
bond
2008 - 2009 2005 - 2007
- 5% concessionary tax rate for qualifying
Shariah compliant financial activities
- 1st Shariah compliant ETF launch on SGX
- 1st Commodity Murabaha by SGX Listco
- 1st conversion of REIT into Islamic REIT
- 1st Sukuk issuance by AAA rated
sovereign in the world
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Common challenges e.g.
- Product Development
- Risk Management
- Standardization of Shari’a opinions
- Management buy-in of clients
- Comfort level with structure
- Confidence in risk mitigation
- Robustness of infrastructure
- Ease of documentations