@Halal July/August 2022 | Page 34

UOB Malaysia positions sustainable practices at the core of its business operations in tapping Islamic banking

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@ HalalXtra 10 July-August 2022

FINANCE

INTERTWINING ISLAMIC BANKING AND ESG

UOB Malaysia positions sustainable practices at the core of its business operations in tapping Islamic banking
BY FATIHAH MANAF

THE Islamic banking sector in Malaysia has been expanding steadily over the past few years , with Islamic finance assets making up around 38 per cent of the country ’ s current total banking assets . As of May 31 , 2022 , the total Islamic finance assets in the market stand at RM1.001 trillion , indicating the strong demand for Islamic banking products and services .

Bank Negara Malaysia ’ s ( BNM ) aspiration for the market share of Islamic financial assets to reach 50 per cent by 2030 shows the sector ’ s vast potential for growth .
According to Mohd Fhauzi Muridan , Executive Director and Country Head of Islamic Banking , UOB Malaysia , the Bank is steadfast in capturing a share of Malaysia ’ s fastgrowing Islamic banking and finance market .
As one of the most prominent players in the banking industry , UOB has deep roots in Malaysia and
an extensive presence in Southeast Asia , with a network of more than 500 offices globally . For over 70 years , the Bank has supported the country ’ s consumer wealth and corporate business growth .
Taking a deliberate and prudent approach to Islamic banking , the Bank launched its Islamic banking business in 2016 amid a more developed and matured Shariah-compliant financial market . It has invested the necessary time to build its internal expertise and know-how in Islamic finance . “ UOB Malaysia recognises the importance of Islamic finance , especially for sectors such as Malaysia ’ s halal industry , which is expected to hit US $ 113.2 billion by 2030 . Strong collaboration by governmental organisations in promoting the halal sector

INNOVATING

FOR A SUSTAINABLE TOMORROW bodes well for companies to expand the halal offering locally and to the larger global market .

“ In support of our commitment to building lasting relationships with our customers , we offer a comprehensive range of Islamic banking products and services to meet the needs of individuals , SMEs , and businesses . That is one of the reasons for UOB Malaysia ’ s bigger participation in the Malaysia International Halal Showcase ( MIHAS ) 2022 , to provide a platform for new and existing customers to acquaint themselves with our latest financial offerings , especially the Bank ’ s digital capabilities that can benefit them ,” he said .
SUPPORTING THE GROWTH OF THE HALAL SMES
Mohd Fauzi said there were a lot of
UOB MALAYSIA has championed sustainability for many years . It is notable that sustainable practices are gaining traction among companies in Malaysia .
“ UOB Malaysia recognises the increasing market awareness towards sustainable practices and has built capabilities to support such companies . Bank Negara Malaysia ( BNM ), through value-based intermediation ( VBI ), promotes a more socially-conscious approach to banking that creates and delivers value to the customers .