Malaysia is a growing and dynamic economy. Present and past leaders have managed to balance international expectations with domestic aspirations. In part they reflect the spirit and values of the people, known to be courteous, friendly but also committed and tenacious. Raja Teh Maimunah, MD/CEO of Hong Leong Islamic Bank, is an embodiment of Malaysia’s success. A proud Muslim female leader, she reflects the forward-thinking of Malaysia’s perspicacious leaders. Here she comments on what has made Malaysia successful.
The Foundations of Malaysia’s Success
Malaysia has been blessed with natural resources and protection from natural disasters. We have had commendable leaders that helped us believe in ourselves, formed a vision of what we could achieve and plotted a strategy to realize the vision. Our diverse ethnicity and religious beliefs have made us more appreciative of people from different cultural backgrounds. We are open to their unique practices and seek to understand and accommodate their ways of working. That has facilitated us in becoming a global economy.
Malaysia’s Commitment to Islamic Banking and Finance
The success of the IBF industry in Malaysia is due to governmental and regulatory support.
The industry was conceived and directed by the government, and supported by a sound and comprehensive legal framework.
The IBF industry was further boosted by a series of incentives, particularly tax benefits. By introducing IBF alongside the conventional financial system, it allowed consumers to embrace IBF over time with ease and confidence, making it a sustainable proposition.
The government and regulators are constantly working on improving the industry. The recent introduction of the Islamic Financial and Services Act 2013 is a recent example. The Act codifies Shari’a governance, i.e., It makes practitioners liable for non-compliance. I would dare say that no other country has shown such a commitment to IBF to the extent Malaysia has shown.
Creation of Female Leaders
I have been very fortunate that Malaysia provides equal opportunity for all. The inclusionary approach of the Malaysian government is evident. The governor of our central bank, Dr Zeti Akhtar Aziz, is a woman and the financial sector boasts several women holding key positions. The IBF sector is no different; we even have women scholars. Our public universities have more women than men, i.e., more than 60% in total. The government has also set a target of 30% for female representation in boardrooms by 2016. TalentCorp was set up by the government with a KPI on gender diversity. There is clearly a conscious effort on the part of the government to create more female leaders.
The challenges I faced as a woman were not in Malaysia; rather they were in other markets where there is cultural resistance against women in the workforce. Unfortunately, those markets are Islamic ones.
Involving Islamic Banks, Like Hong Leong Islamic Bank, to Facilitate
Islamic finance is increasingly playing an important role in Malaysia’s economic expansion. The manufacturing and service sectors have been crucial to the growth of Malaysia. The Malaysian government introduced Shari’a-compliant funds specifically for SMEs. Hong Leong Islamic Bank is one of the main intermediaries in distributing those funds. Indeed, Hong Leong Islamic Bank’s contribution to the development of IBF includes product development as well as enhancing thought leadership. Hong Leong Islamic Bank has developed several ‘firsts’ in sukuk structures and we work with various Shari’a research institutes in developing Shari’a products and legal documentation. These sukuk bring in investment to businesses, helping them contribute to the growth of the economy.
Hong Leong Islamic Bank is also contributing to the overall growth of the halal industry.
Funding the food sector is important to us especially as the halal food sector is growing in importance across the globe. We pride ourselves in being able to support cross-border activities, e.g. Shari’a compliant FX and currency swap transactions.
