may-june. 2020 | @Halal
Cover Story
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enhancing the growth of Islamic finance in
Malaysia, the products and services should
be diversified in attracting every area to
participate in Islamic finance.
“There should be more effective initiatives
for every sector in terms of providing precise
and detailed encouragement as well as a
clear explanation of the differences between
Islamic finance and the conventional
system.
“Our Islamic finance system has been
growing tremendously for the past few years,
from retail to commercial Islamic banking and
finance, to general and life takaful insurance
and sectors of the Islamic capital market. So, it
is not difficult to continue encouraging it if the
approach for Islamic finance is appropriate,”
he said.
From time to time, he said, Islamic finance
should be conducted more efficiently by
reducing its limitations such as the conflicts
between its implementation and the rule of
Islamic law.
He felt the related authorities should
improve shariah governance through
research and development.
Also, the infrastructure to support further
development of the Islamic financial industry
in addressing the institutional capacity for
the national and international levels should
be strengthened to avoid complications and
people’s reluctance to take part in Islamic
finance.
MDEC can help Malaysia, which is a
global leader in Islamic Finance, drive the
Islamic digital economy. Rais said as with
most services in the B2C space, addressing
Muslim consumer needs and pain points
were critical to driving digital Islamic services
opportunities, adoption and growth.
“Digitally and commercially, Islamic
finance, Islamic media, halal travel, modest
fashion and halal food stand as the most
attractive industry verticals with the most
significant digital services activity and online
market potential.
For instance, the global revolution in
communication technology (through social
media, mobile and broadband technologies
and smartphones) has enabled the Islamic
Economy lifestyle sectors to achieve a wider
global reach and exposure,” he revealed.
He said MDEC could provide platforms for
relevant businesses to enhance and improve
their sales portal for modest fashion apparel
and accessories. It can be as good as other
giant e-commerce platforms like Amazon and
eBay, since e-commerce, in general, was the
most effective and fastest-growing digital
service, not only in Malaysia but all over the
world.
There are also excellent opportunities
in the Islamic economy education and
Smart Mosque areas. Smart Mosques is
where mosques are employing modern ICT
technologies that enable them to interact
with users in a way that enhances their
understanding and improves their prayer
experience. It also includes mosques
which apply smart technologies to resolve
practical issues to improve their efficiency,
effectiveness, sustained operation and
maintenance.
through digital technologies.
For example, the new skills training to
overcome the challenges of Covid-19 with
Digital Technology has been well-received
by many individuals and businesses as
the training programmes provide reliable
solutions to be leveraged on such as digital
income and e-learning.
Last year, participants of MDeC’s GLOW
(Global Online Workforce) programme
generated an income of RM70 million by
performing services mainly to international
clients. What are your expectations for 2020?
Although this year is challenging due
to the rise of Covid-19 pandemic, there is
nothing to worry about the performance of
MDeC’s GLOW initiative. Instead, this comes
in as an opportunity for Malaysians to be
part of the online global workforce since
most of them might have faced an unfortunate
situation and lost their jobs during this
trying time.
Moreover, with the RM25 million government
allocation to MDeC in the Penjana
package, this can be utilised to drive incomes
further through GLOW this year. however, I
don’t have a specific number for it.
How do you see the growth of digital payments
and wallets in Malaysia?
The emergence of e-commerce and
technology-led initiatives, mainly since
the pandemic are the key factors which are
driving the digital payment market trends.
In recent years, Samsung Pay, Google,
Alipay and Apple have emerged as the top
players in the digital payment market. But
Malaysia is not too far behind as we have
Grabpay, TnGewallet, and Boost to drive the
local digital payment market. These players
have undertaken massive investments in
advanced technologies and have expanded
their businesses in digital payment services.
With the current situation, using digital
payments can help you avoid physical touch,
avoid wasting time from the long queues at
the ATMs and some convenience stores, and
of course eliminate the hassle of carrying
cash.
With the cashless payment adaptation,
experts claim it would add more than three
per centage points to the GDP. It is due to the
increasing velocity of value transfers and
the growing level of spending as making
The related
authorities
should improve
shariah
governance
through research and
development. Besides,
the infrastructure
to support further
development of the
Islamic financial industry
in addressing the
institutional capacity
for the national and
international levels
should be strengthened to
avoid any complications
and people’s reluctance to
take part in Islamic
finance.”
expenses is now less tangible.
To add on, a data research firm Statista
has also projected digital payments in
Malaysia to jump 19.1% to US$11,904 million
(RM50,949 million) in 2020.
It shows how valuable and “current” digital
economy is now, and it is the way to move
forward for Malaysia. Covid-19 has accelerated
the migration of society from physical
infrastructures into digital infrastructures,
turning into a cashless society.
nonetheless, the built-in of excellent
digital infrastructures like stable mobile
applications or online banking system is
vital as its absence can be a hindrance for
society to adapt to the cashless payment.
When do you expect the Shop Malaysia
Online campaign to take off?
I can see that it is progressing. Some of the
online platforms have recently started the
initiative announced in Penjana. Lazada
Malaysia has teamed up with TnG digital to
launch an RM6 million programme named
#KitaBantuKita to accelerate spending
among Malaysian consumers on local products.
I am positive that this campaign will
benefit our local businesses and help them
to recover from this crisis.