KUALA LUMPUR: The government has introduced a pilot programme on Greening Halal Businesses aimed at assisting halal businesses in Malaysia to transition to greener and sustainable practices.
Prime Minister Datuk Seri Anwar Ibrahim in announcing the programme, said it would be implemented by providing technical capacity building tools to measure and report greenhouse gas emissions, and transition financing including certifications.
"Today, I wish to reiterate the Malaysian government's commitment towards this innovation through partnerships and announce a commitment of RM100 million to seed more such innovations," he said in his keynote address at the Global Forum on Islamic Economics and Finance (GFIEF).
Anwar, who is also finance minister, announced Project Hassan, a collaboration between Lembaga Zakat Negeri Kedah (LZNK), MIFC Leadership Council (MLC), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) and INCEIF University to upscale zakat initiatives to elevate the socio- economic conditions of the asnaf in Kedah.
Through this collaboration, he said RM10 million was targeted not only to strengthen the asnaf community but also to improve the direct benefits for padi farmers.
He reiterated the need to innovate and leverage on the concept of waqf, citing among others the RM100 million grant establishment of a Mara waqf endowment fund, which was announced in March.
He said the government had also extended tax incentives to cover stock-based waqf initiatives, building on the model already implemented under Wakaf Amanah Saham Nasional Bhd, as well as allocating RM500 million of loan financing for the development of property developments on waqaf land under the 2024 Budget.
Anwar said the Securities Commission Malaysia (SC) would introduce fundraising for waqf developments through P2P financing and equity crowdfunding platforms, with the government providing matching funding through MyCIF at zero per cent financing rate.
Earlier in his speech, he said the principles of Islamic economics and finance remained even more relevant to resolve the core conundrums which the world was facing, including lifting abject poverty, ensuring food security and enabling equal opportunity to comprehensive education.
"This is why we have to embark on a holistic 'islah', a reform agenda for positive change and a force for good in the global economy.
"The time has come to chart a reinvigorated and reformed course within the Islamic economy towards a future defined by greater inclusivity, equality, opportunity, and shared prosperity.
"One which no longer accedes to archaic economic orthodoxies, which prioritises growth and material pursuits over quality of life, while glorifying profit maximisation and treating labour as a commodity rather than with compassion."
Anwar said that the Islamic finance ecosystem must evolve progressively, focusing on value-based finance rather than merely profit-driven motives.
Advocating for a higher purpose where wealth was not just accumulated by a few but was circulated to uplift communities, he also highlighted the importance of ensuring that investments promised balanced prosperity, benefitting a broader section of society and fostering inclusive economic growth.
"In light of this, it is imperative that we work together to address common challenges and create opportunities for economic participation and upward mobility.
"By promoting micro, small and medium business development as well as access to finance for underserved and unserved populations, we can reduce disparities and foster shared prosperity.
"Through global integration and effective use of Islamic social finance instruments, we can bridge the gap between the haves and the have-nots and promote shared societal cohesion."
Anwar said the government would continue to steadfastly support Islamic social finance initiatives in Malaysia, including iTEKAD championed by Bank Negara.
He said the partnership of Islamic financial institutions with micro entrepreneurs was aimed at empowering them through blended finance programmes, combining seed capital, training grants and loans funded, with an allocation of RM10 million that he approved last year to further scale up iTEKAD.
Themed "Shaping a Resilient Global Islamic Economy Through Values-based Reforms", GFIEF sees policymakers, business leaders, and financial service providers from all around the world gathered to engage in discussion and collaborate to build a future where Islamic economics and finance can play a pivotal role in fostering shared prosperity and equity.