@Halal July/August 2022 | Page 35

“ Larger SMEs and corporate companies clearly understand the role of ‘ halal ’ in their business . Many companies realise the value of being listed as a Shariah-Compliant entity where it attracts a bigger pool of investors and clients to deal with them . Emphasis is placed not just on the type of Shariahcompliant business they do but also on the financial ratios to help them maintain a certain level of ‘ halal ’ in their business .“

Mohd Fhauzi believes UOB ’ s connectivity and presence in the Southeast Asian region , especially in Indonesia , Thailand , Singapore and Vietnam , will offer the Bank ’ s target customers a business advantage as the halal industry has now become borderless . Today , UOB Malaysia provides leadership , best practices and support for the rest of its Group ’ s franchise across Asia for Islamic banking products and services .

TAKING THE LEAD IN ISLAMIC BANKING

According to Mohd Fhauzi , Shariahcompliant financing has always avoided businesses that deal with harmful elements that negatively impact society ’ s environmental and social construct .

“ Shariah-compliant financing promotes justice and fairness in dealings with businesses , and this helps ensure the company remains sustainable in the long run . Emphasis on good governance is also consistent with the principles championed by

“ UOB Malaysia expects to see more products and services developed for social financing , community engagement and collaborative partnerships to ensure a sustainable business model for SMEs ,” said Mohd Fhauzi Muridan , Executive Director and Country Head of Islamic Banking , UOB Malaysia .

“ Banks are expected to play a more advisory role to provide relevant information and support for SMEs to continue to grow . This is also in line with the ESG principles environmental , social and governance ( ESG ).

“ UOB has developed several sustainable financing frameworks to simplify sustainable financing , including Islamic ones , for our customers . These frameworks support companies contributing to the creation of smart cities , construction of green buildings , facilitating green trade , and creating a circular economy .”

UOB Malaysia ’ s Islamic Banking division is active in all areas of wholesale banking , including catering for larger commercial and corporate entities in Malaysia . As recent as 2021 , UOB Malaysia won various awards such as IFN ’ s Infrastructure & Project Finance Deal of the Year and the Malaysia Deal of the Year , as well as The Assets Triple A Asset Asian Awards for Best New Sukuk – Corporate for Guan Chong Wakalah Transaction and Best Securitisation for Exsim Venture Berhad Islamic MTN Sukuk Musharakah & Islamic

“ UOB has developed several sustainable financing frameworks to simplify sustainable financing , including

Islamic ones , for our customers . These frameworks support companies contributing to the creation of smart cities , construction of green buildings , facilitating green trade , and creating a circular economy .”

— Mohd Fhauzi Muridan

of sustainability and corporate governance .”

In 2019 , UOB launched U-Solar under its Smart City Sustainable Finance Framework . U-Solar is the region ’ s first solar energy marketplace that benefits the entire solar energy ecosystem , including end-users . Under the same framework , the Bank launched U-Energy last year , Asia ’ s first integrated financing solution platform for energy efficiency .

“ With our deep understanding of the sector , UOB is well-positioned

CP Sukuk Murabahah .

“ These recognitions received by UOB Malaysia show the Bank ’ s capabilities in highlighting market confidence to secure significant deals for Islamic finance . UOB Malaysia is also active in issuing various Sukuk for our valued clients ,” Mohd Fhauzi elaborated .

UPHOLDING SUSTAINABLE PRACTICES

Whilst continuously deepening its presence across the region , UOB Malaysia strives to address the ESG risks and the impact of its operations in a manner consistent with the Bank ’ s values . Mohd Fhauzi said the effort was in line with UOB Malaysia ’ s role in helping to ensure a safe , secure and trusted banking system .

“ One of the main drivers for UOB Malaysia is the capabilities to provide digital solutions to our targeted customers . Digitalisation supports the efficient use of resources at a faster

to provide financing solutions that connect building owners , energy service companies and green contractors . In July this year , the Bank extended a green trade finance facility under the UOB Green and Sustainable Trade Finance Framework to IOI Corporation Berhad , one of Malaysia ’ s leading global integrated and sustainable palm oil players .

The facility will help the company promote sustainable palm oil and strengthen the global sustainable palm oil supply chain ,” Fhauzi added . speed while increasing productivity and reducing waste . Digitalisation also improves competitiveness which will help the sustainability of businesses in the long run .

“ ESG and the principles guided by Shariah are closely intertwined . The sustainable mindset outlined in ESG practices is consistent with the objectives of Shariah , where equal financial access , environmental-friendly businesses , and a lower focus on profit and a larger focus on the community are greatly encouraged .

The Value-based Intermediation Financing and Investment Impact Assessment Framework ( VBIAF ) aims to facilitate the implementation of an impact-based risk management system for assessing the financing and investment activities of Islamic financial institutions in line with their respective VBI commitments . The VBIAF also serves as a reference for other financial institutions intending to incorporate environmental , social and governance ( ESG ) risk considerations in their own risk management system . Islamic Financial Institution is aligned closely with the ESG as it promotes sustainable practices with greater consideration of community and universal well-being ,” shared Mohd Fhauzi .

Digitalisation can further help Islamic Banking unleash its full potential in striving towards fully embracing and adopting VBIAF . To that end , UOB Malaysia ' s Islamic banking business has been supporting the Bank in helping SMEs accelerate their digital transformation journey through the annual Jom Transform Programme . – Halal Xtra

TO FURTHER support SME growth , UOB Malaysia continues to push for trade financing solutions tied with digital capabilities to improve SME efficiencies .

Traditional trade products such as Letters of Credit , Trust Receipts , Acceptance Bills , Bank Guarantees and Invoice Financing products can now be linked to digital solutions such as Integrated Logistics Management Systems , B2G Payment in Trade Facilitation and Digital Trade Connectors , offered under UOB Malaysia ’ s halal digital logistics ecosystem . This ecosystem solves the end-to-end issues commonly faced by businesses involved in local and international trade .

“ With UOB Malaysia , your business can now automate and improve your trading and logistics processes .

“ Other than the basic Wealth Management solutions such as operating Current Account-i , Fixed Deposit-i and Unit Trust-i , UOB Malaysia encourages cash flow management systems that consolidate and maximises returns of your account balances ,” said Mohd Fhauzi Muridan , Executive Director and Country Head of Islamic Banking , UOB Malaysia .

“ The UOB Smart Business also offers a range of digital solutions to help manage your Business Management , HR and Payroll , Payments , and Accounting needs under one roof . You will control your cash flow better , improving your business ’ s efficiency and liquidity .”