RIYADH, April 29 — The functions and roles of the Islamic Development Bank (IsDB) must be continuously expanded to make it a resilient financial institution, while also continuing to support a competitive Islamic economy, said Prime Minister Datuk Seri Anwar Ibrahim.

"I continue to urge for its functions and roles to be expanded and its approach to be broadened so that it truly (supports) the comprehensive Islamic economy and finance, capable of competing with and surpassing other (financial) instruments,” he said.

Anwar, who is also the finance minister, said this after witnessing the signing of a memorandum of understanding (MoU) between the Securities Commission Malaysia (SC) and the IsDB.

He also highlighted that Malaysia was one of the countries that proposed the establishment of the IsDB, and added that the country has plans to work with the IsDB to enhance cooperation in the halal industry.

Reflecting on the significance of the MoU between the SC and IsDB, the prime minister hailed it as a positive development, lauding it as part of the capital market regulator’s long-term endeavours to position Malaysia as a hub of excellence in the capital market landscape, as well as in pioneering new and sophisticated financial instruments.

He added that the SC, the Finance Ministry, Bank Negara Malaysia as well as other agencies will also continue to design several new instruments to enhance the capabilities of the Islamic capital market.

"We will elaborate on this in more detail during our final conference (Global Forum on Islamic Economics and Finance) in May. The SC can prepare the initial frameworks to present these views to the global Islamic economic community,” he said.

Anwar, along with IsDB president and chairman Muhammad Al Jasser, witnessed the signing of the MoU by SC chairman Datuk Seri Awang Adek Hussin and IsDB vice-president of finance and chief financial officer Zamir Iqbal.

The MoU is set to enhance cooperation in the Islamic capital market and expand the scope of Islamic fintech and social finance, especially in terms of waqf.

It is also the first of its kind between Malaysia’s capital market regulator and the IsDB. — Bernama