Dr M: Great potential for Islamic finance

 

Islamic banking is a better alternative because it cannot be manipulated by 'rogues, says former prime minister Tun Dr Mahathir Mohamad

THE current conventional banking system has been a failure and Islamic banking is a better alternative because it cannot be manipulated by "rogues", says former prime minister Tun Dr Mahathir Mohamad yesterday.

"The future of Islamic banking promises great potential because the world has become aware that the Islamic way provides a viable alternative for many economic and business activities," said Dr Mahathir after a key note speech at the International Conference on Islamic Economics, Banking and Finance in Langkawi, Kedah, yesterday.

Dr Mahathir said Islamic banking is different from the current banking system today because of the ethics and morality involved.

Wealth-creating growth and development promoted by Islamic banking are circumscribed by morality and ethics so that greed is curbed.

The natural tendency of the current banking system is to look at the end aim or objective.

"The end may look good but it can cost society a lot and it would not be durable. Sooner or later it will crack or crumble. This is what we are witnessing today," he said.

However, ethical and moral values must be sustained because there are as many greedy people among Muslims as there are among others.

Dr Mahathir said in today's world, greed had overcome all sense of propriety and good values that anything that seemingly enriches is not only accepted but is promoted as the path to wealth and development.