LHC targets more for Islamic finance
BANK Negara Malaysia's Law Harmonisation Committee (LHC) has set its target higher, not only to overcome obstacles for Islamic finance in Malaysia but also to make the country the world's primary hub for dispute resolutions in the industry.
"Malaysia is the only country in the world to have parallel banking laws," said Tun Abdul Hamid Mohamad, LHC chairman and former chief justice of Malaysia, during a media briefing, here, yesterday.
"The LHC's main objective is to create a more conducive playing field for Islamic finance, alongside its conventional counterpart."
Zaid Ibrahim & Co chairman and LHC member Datuk Dr Nik Nozrul Thani, who was present at the briefing, said the aim is to make Malaysia a leader not only in Islamic financing, sukuk issuances and legislation, but also in Islamic finance dispute resolution.
"We have the legislation in place and the talent. Malaysia's Islamic finance industry is only about 30 years old but we are already an industry leader.
"If big players like Qatar and Dubai can come and issue sukuk and do their financing here, we see no reason why they can't conduct their dispute resolutions here, too," he said, noting that there is no timeline in realising this objective.
In its 2013 report released yesterday, the LHC has identified nine issues concerning 17 laws. Out of the nine, four require legislative amendments, which have been brought up to the relevant government ministries, four did not require amendments and one needed further review.