Could you provide a brief journey of how you arrived where you are today?
I joined OCBC’s investment banking division in early 2004. I am quite fortunate to have joined an organization that not only adopts best international practices but also encourages progressive innovation while adhering to strict quality standards. These factors have, in turn, augured well and contributed to the current dynamic and progressive state of the Islamic finance sector.
Prior to OCBC, I served at several other investment banks’ capital markets departments, being responsible primarily for the origination, structuring and execution functions for various funds raising exercises.
What does your role involve?
My current role encompasses developing and implementing business strategies for Islamic investment banking activities and managing the origination, structuring and execution of innovative Shariah compliant corporate and project financing transactions.
What do you consider your greatest achievement to date?
Contributing to the development of the Malaysian Islamic finance industry is an ongoing endeavor which, to a certain extent, also helps to promote the market’s growth on a regional and global scale. I think I have a played at least a small part here.
What are the challenges/obstacles that the Islamic finance industry faces today?
For Islamic finance to progress — in particular its capital market component — all the established and aspiring hubs for Islamic markets need to enhance intra-market connectivity.
Among the key issues which need to be addressed swiftly are the “CCC” infrastructures:
• Credit rating platform. To facilitate a common basis for a rating methodology, the current systems needs to be reviewed as it tends to yield inconsistent ratings in different jurisdictions with a prevalent bias towards the western world’s rating framework. This could hinder significant numbers of creditworthy entities from accessing intra-regional liquidity in a cost competitive manner.
• Currency platform. Currency mismatches and fluctuations need to be addressed. Recent efforts in developing a more widespread application of the “Gold Dinar” may be of relevance in order to anchor the intra-market “bridge building blocks”.
• Code of conduct platform. We need to establish mutually acceptable bases for Shariah, legal, tax and accounting frameworks, among others. The present country-centric jurisdiction framework presents numerous challenges for developing a vibrant cross border multilateral investment flows.
Another challenge relates to achieving the solutions for all the above cost effectively. This is essential to maintaining the price competitiveness of the Islamic instruments.
Where do you see the Islamic finance industry in, say, the next five years?
The future looks bright with the various initiatives being actively pursued worldwide by the relevant stakeholders. These include the setting up of a few mega-sized Islamic institutions, closer collaboration and consolidation of more small/mid-sized entities, and the entry of several major international financial centers. Islamic finance certainly has the potential to grow to a more mature level.
Name one thing you would like to see change in the world of Islamic finance.
Unlike its long established conventional counterparts, the foundation of the Islamic financial system is also highly dependent on the fundamentals of trust. A key lesson that all proponents of Islamic finance can appreciate from the current fiasco plaguing the global financial market is the mega-ramification of “destruction of reputation”.
As there has been a spate of Sukuk downgrades and defaults recently, it is hoped that the parties responsible would resolve these in a transparent and equitable manner that is consistent with international best practices. This would ultimately be for the benefit of reinforcing the trust element which is so essential in the Islamic market specifically and the global financial market as a whole.