REDZUAN YAACOB
SENIOR DEPUTY CHIEF EXECUTIVE OFFICER
TEKUN NASIONAL, MALAYSIA
13 NOVEMBER 2015
KAZAKHSTAN
ISLAMIC BANKING IN MALAYSIA, 2015
Commercial Banks
Islamic Banks
Investment Banks
RM10,083.8 M
1% (USD
2,349.85 M)
26%
RM367,167.0 M
(USD 85,561.84 M)
73%
RM1,018,408.4 M
(USD 237,322.25 M)
TOTAL : RM1,395,657.2 M
USD 325,233.47 M
Source : Department of Statistic, Malaysia
USD 1 = RM 4.29
ISLAMIC BANKING IN MALAYSIA, 2015
Micro
Small & Medium
4%
RM12,000.0 M
(USD 2,797.2 M)
RM355,167.0 M
(USD 82,789.5 M)
96%
TOTAL : RM367,167.0 M
(USD 85,561.84 M)
Source : Department of Statistic, Malaysia
USD 1 = RM 4.29
ADVANTAGES
OF ISLAMIC MICROFINANCE
COMPATIBLE With religious belief
INVESTED DIRECTLY Into the business venture
PROMOTES ETHICAL Investment & business practices
DEVELOP TRUST & UNDERSTANDING between lender &
borrower
MORE APPROPRIATE FINANCING for a diversity of
microfinance approaches
CONCEPT
OF ISLAMIC MICRO FINANCE
Tawarruq
• Cost plus mark up
Mudharabah
• Silent partnership / profit
sharing
Musyarakah
• Joint venture partnership
Qard Hasan
• Benevolent loan
Remark : Central Bank of Malaysia has prepared the Resolutions of Shariah Advisory Council
of Bank Negara Malaysia through resolved that deposit product and financing based on the
concept of tawarruq is known as commodity murabahah is permissible.
CONCEPT
OF ISLAMIC MICRO FINANCE
1
Purchasing Commodity
( Pool of suppliers )
Cash Payment
Selling
Commodity
2
3
Deferred
Payment
Cash Payment
6
ENTREPRENENUR
5
BURSA SUQ
AL SILA
(Trading &
Clearing
Engine )
COMMODITY
SUPPLIERS 1
4
COMMODITY
SUPPLIERS 2
Selling Commodity
COMMODITY
SUPPLIERS 3
COMPARISON OF FINANCING RATE
OF ISLAMIC MICRO FINANCE
10%
6%
5%
7.92%
* Flat Rate
6.38%
4%
THE
PRODUCT
OF ISLAMIC MICRO FINANCE
Group Financing
Micro credit financing
practices
Self select members into
group of five (5)
Use the service as they can
pawn their gold
Member identifies the
purpose of their loan
To get instant cash with less
risk
Members to maintain regular
payments
Quick and easy for majority of
women in lower income group
Monitoring and peer support
TEKUN’S
EXPERIENCE
OF ISLAMIC MICRO FINANCE
TEKUN implement
Tawarruq concept
TEKUN implement Qardhul Hasan
/ awarenessTawarruq concept
Running the program with
conventional practices
TEKUN was incorporated as a Foundation
and registered as a Company Limited by
Guarantee ( non-profit organisation )
THE
MATTER
TEKUN’S
EXPERIENCE
OF ISLAMIC MICRO FINANCE
PROBLEM : HIGH NPL
NEW PRODUCT
Self select members into
group of five (5)
Member identifies the purpose
of their loan
Loan disbursement
GROUP FINANCING
7 WORKING
DAYS
TEKUN’S
EXPERIENCE
OF ISLAMIC MICRO FINANCE
Loan Disbursement
RM 45,043,500.00
(USD10.5 MIL)
No of Group
1,361
No of Borrowers
6,807
Repayment :
197%
THE OFMODELS
–
FOCUS
ISLAMIC MICRO FINANCE
With the success of group financing, TEKUN
will focused over 60% of this model to
sustain in the market
THE
MATTER
TEKUN’S ACHIEVEMENTS
OF ISLAMIC MICRO FINANCE
Loan
Disbursement
No of
Entreprenenurs:
RM 3,623 MIL
322,474
(USD 844 MIL)
No. of Loan
424,563
No of Staff:
No of Branch:
Outstanding
970
222
Loan :
RM 1,600 MIL
(USD 381 MIL)
TEKUN
SUCCESS
STORY
OF ISLAMIC MICRO FINANCE
THE
MATTER
OUTCOME
OF ISLAMIC MICRO FINANCE
Financial Inclusion
Ensure that every
economic activities &
segment of society
has access to financial
services
Access to
Financing
Access to
financial
services
Access to
financial
assistance
Poverty
Eradication
Access to
financial
information
CHALLENGES
OF ISLAMIC MICRO FINANCE
1. High cost of capital
2. Sustainability
3. Lack or entrepreneurial
development scheme
4. Extending loan with competetive profit rate
5. Improvement of work process
6. Operational capacity
WAY
FORWARD
OF ISLAMIC MICRO FINANCE
MOBILE BANKING
Banking System &
Payment Gateway as a
platform for TEKUN
AR RAHNU ISLAMIC
PAWN
Ar Rahnu (the borrower
is required to place a
valuable asset for the
loan extended by the
lender and it may be
utilized as payment if
the debt is not repaid
within the agreed
period)
FINANCIAL LITERACY
Skills and knowledge
that allows an
individual to make
effective decisions
with all of their
financial resources
ACCEPTANCE OF
ISLAMIC
MICROFINANCE
• financial inclusion
• entrepreneurship
• risk-sharing through
partnership
financing
REDZUAN YAACOB
[email protected]