@Halal May/June 2021 | Page 6

Idea based on online platform can meet liquidity needs within D-8 group
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Foreign News

@ Halal | May-June . 2021

Erdoğan pushes for Islamic ‘ megabank ’

Idea based on online platform can meet liquidity needs within D-8 group

TURKEY ’ S President Recep Tayyip Erdoğan is pushing for a “ megabank ” idea that could meet the liquidity requirements of Islamic financial institutions and financing for infrastructure projects .

“ We believe the idea of an Islamic megabank based on an online platform can be turned into reality . It can meet the liquidity needs of Islamic financial institutions . It can also address the growing infrastructure financing needs of the Muslim geography ,” Erdoğan told a virtual summit of the D-8 group of developing nations .
According to Daily Sabah , the president did not provide further details . He said the D-8 Organisation for Economic Cooperation should be updated to fit current needs . It should also be transformed into a projectand-result-oriented structure and taking steps to speed up decision-making processes .
The D-8 group will start a project that includes the Islamic Development Bank to revitalise regional cooperation and trade within member States , said secretary-general Dato Ku Jaafar Ku Shaari in March .
Erdoğan has voiced support for and negotiated with Turkey ’ s top partners to increase local currency use in commercial transactions , mainly bilateral trade . The president suggests this would minimise forex pressure inherent in US dollar-based trade .
“ To protect our countries from currency risks , it is essential that we focus on trade with local money ,” Erdoğan noted .
The president suggested switching to national currencies would revolutionise trade relations when he made his first call during the summit in Istanbul in 2017 .
“ The developments over the last four years have proven this call ’ s reliability ,” Erdoğan remarked .
He earlier said the dollar ’ s reign on global trade should end , stressing that dependence on the greenback was becoming more of a burden instead of a convenience .
The D-8 was launched in June 1997 after then-Turkish Prime Minister Necmettin Erbakan proposed creating an economic group consisting of eight emerging economies from the Islamic world .
Alongside Turkey , the group includes
We believe the idea of an Islamic megabank based on an online platform can be turned into reality . It can meet the liquidity needs of Islamic financial institutions . It can also address the growing infrastructure financing needs of the Muslim geography .”
— Erdoğan
Indonesia , Bangladesh , Egypt , Iran , Malaysia , Nigeria and Pakistan .
Decennial Road Map for 2020-2030
A statement following the summit said the D-8 bloc adopted a road map , namely the D-8 Decennial Road Map for 2020-2030 and the Dhaka Declaration 2021 .
The nations agreed to enhance trade cooperation and bring their domestic trade volumes to at least 10 per cent of the organisation ’ s total trade in the next 10 years .
The group has an annual trade volume of around US $ 1.6 trillion ( RM6.6 trillion ), of which 6.5 per cent stems from intra-D-8 trade . It represents 4.5 per cent of global trade and 5 per cent of the global Gross Domestic Product ( GDP ).
Yet , Erdoğan said : “ It is of great importance that the D-8 Preferential Trade Agreement is put into effect by all member states at the earliest possible time .”
“ As for Turkey , we have prepared a strategy document to facilitate trade between the D-8 countries and conveyed it to you .”
The bloc has a target of achieving a trading volume of US $ 500 billion by 2023 .
With the road map adopted , the bloc aims to become stronger and more developed . It will support the implementation of relevant strategies and action programmes to help achieve the 2030 sustainability agenda set by the United Nations .

Japanese food companies seek halal certification from JAKIM

SEVERAL Japanese food manufacturers are seeking halal certification from Malaysia ’ s Department of Islamic Development ( JAKIM ) for their products , said Japan ’ s Ambassador to Malaysia Oka Hiroshi .
He said these companies were also keen on making Malaysia their entry point to market their halal products to other destinations .
“ Once they get the halal certification from JAKIM , they hope to start exporting , to make Malaysia as the entry point for their halal products
to other markets ,” he said during his courtesy visit to the Malaysian National News Agency ( Bernama ) headquarters .
Oka added Japan was also interested in exploring new areas of trade cooperation with Malaysia , including in medical devices and technology .
He added that Japan was also working with Malaysia ’ s Health Ministry in combating the Covid-19 pandemic , especially in two areas – namely in medical devices , and assisting and
supporting the cold chain system to transport vaccines .
The ambassador said the plan was on track on the renowned Tsukuba University setting up its first overseas campus in Malaysia . The campus was expected to be opened in 2023 with enrolment to begin next year .
He said this project would be a milestone symbolising future cooperation between Malaysia and Japan as both nations celebrate the 40th anniversary of the Look East Policy next year .