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ISLAMIC FINANCE
@ Halal | March-April. 2025
Getting closer to rural East Malaysia
• Bank Islam has expanded its agent banking services to four new locations in East Malaysia, providing convenient access to essential banking services for rural communities.
• The initiative, through a partnership with Ar-Rahnu YaPEIM and other agencies, allows customers to perform transactions such as deposits, withdrawals, and mobile reloads without needing to travel long distances.
• This expansion supports Bank Islam’ s goal of enhancing �������������������������������������������������������������� efforts with the launch of new mobile and internet banking platforms.
BANK Islam Malaysia Berhad( Bank Islam) has expanded its Ejen Bank Berdaftar( EBB) Bank Islam services to East Malaysia, bringing accessible and Shariahcompliant banking to underserved communities.
The newly launched agent banking services are now available at Ar-Rahnu Yayasan Pembangunan Ekonomi Islam Malaysia( YaPEIM) outlets in Semporna, Sipitang, and Kota Belud, Sabah, as well as Lawas, Sarawak.
This initiative aims to ease financial transactions for residents,
eliminating the need to travel up to 100 kilometres to reach the nearest Bank Islam branch.
Customers can perform essential banking services, including cash deposits, withdrawals, and mobile reloads, at these locations.
Bank Islam’ s Group Chief Operating Officer, Mohamed Iran Moriff Mohd Shariff, emphasised that this move aligns with the bank’ s mission to foster financial inclusion.
“ By partnering with Yayasan Pembangunan Ekonomi Islam Malaysia( YaPEIM) and other strategic collaborators, we are committed to bringing banking services closer to communities with limited access to traditional financial facilities,” he stated.
Since its launch in 2019, the EBB Bank Islam initiatives have expanded to 37 agents nationwide, with a target of 50 by the end of 2025. The bank also recently introduced BIMB Mobile and BIMB Web, replacing older banking platforms to enhance digital banking convenience.
In conjunction with the expansion, Bank Islam hosted a roadshow at Ar-Rahnu YaPEIM outlets in the new locations from Feb 24-27, 2025.
Bank Islam strengthens sukuk capital base
BANK Islam Malaysia Berhad has successfully issued its seventh tranche of Subordinated Sukuk Murabahah worth RM250 million, part of its RM10 billion Sukuk Murabahah Programme.
This issuance qualifies as Tier 2 regulatory capital under Bank Negara Malaysia’ s Capital Adequacy Framework for Islamic Banks, enhancing the bank’ s capital position in line with Basel III requirements.
With a call option on its fifth anniversary, the Sukuk will be redeemed at its full nominal value upon maturity and carries an A1 / stable rating by RAM Ratings Services Berhad. Bank Islam serves as the Principal Adviser, Lead Arranger, Lead Manager, and Shariah Adviser for the programme.
As Malaysia’ s first publicly listed Islamic bank, Bank Islam continues to lead in offering Shariah-compliant financial services while upholding ESG values and participating in the UN Global Compact.
The latest Sukuk issuance further underscores the bank’ s commitment to sustainable Islamic finance.–
IN a move set to bolster the Islamic finance landscape in Malaysia, Bank Islam Malaysia Berhad and Syarikat Takaful Malaysia Keluarga Berhad have signed a five-year Bancatakaful service agreement.
This strategic collaboration aims to provide Bank Islam customers with more accessible and comprehensive Shariah-compliant protection plans.
Through this partnership, customers can now access a range of Takaful Malaysia’ s products – including Takaful mySmart Wealth Plus, Takaful myPrime Cover, and Takaful mySmart Legacy – via all Bank Islam sales channels nationwide.
The collaboration reflects both entities’ shared commitment to offering inclusive, ethical, and
Bank Islam and Takaful Malaysia seal partnership tive, Shariah-compliant financial services.
Meanwhile, Nor Azman Zainal, Group CEO of Takaful Malaysia, expressed confidence that the partnership will support the company’ s growth in both family and
effective financial solutions.
Datuk Mohd Muazzam Mohamed, Group CEO of Bank Islam, emphasised that the initiative is part of the bank’ s ongoing effort to enhance customer experience by offering innovageneral takaful segments.
The official signing took place on 20 March 2025 at the Grand Hyatt Hotel in Kuala Lumpur, coinciding with a meaningful iftar session attended by 51 selected asnaf from the Klang Valley.
A total of RM30,200 was donated, which included zakat wakalah contributions and direct aid to the beneficiaries – underscoring the partners’ shared commitment to social responsibility.
As demand for ethical financial products continues to grow, this collaboration is expected not only to strengthen both institutions’ market presence but also to contribute significantly to the economic empowerment of the Malaysian Muslim community.