Kuala Lumpur, 29 August 2016 – The 12th World Islamic Economic Forum (WIEF), which was held in Jakarta from 2 to 4 August 2016, saw developments that bolstered regional cooperation and business ties among nations and businesses in the region. Bilateral meetings among country leaders that were held and 10 memoranda of understanding that were exchanged have created a momentum to further accelerate economic growth in both the Muslim and non-Muslim economies.
At the Forum, the country leaders highlighted that growing inequality continues to defy solutions for inclusive development and that centralised development tends to overlook or even marginalise large sections of society in many countries. They also pointed out that the unintended consequence of innovative technology often was the enrichment of a few; that the potential of the young population of the developing world has not been effectively utilised; and that enhancing media strategy to improve global perception of Islamic world investments and business potentials is important.
Sri Mulyani Indrawati, Minister of Finance of the Republic of Indonesia affirmed that WIEF recognises these challenges through its theme of “Decentralising Growth, Empowering Future Business”, and a tailor-made Forum programme. The Forum, while focused on the development of micro, small and medium enterprises (MSMEs), also discussed topics relating to the expansion of the global halal ecosystem, enhancing the inclusiveness of Islamic finance, the support of startups and the development of the creative industry.
In addressing the issues of decentralisation to enable inclusive economic growth, the 12th WIEF made notable recommendations that included: 1) promoting and supporting an enabling environment including access to finance, for the development and corporatisation of MSMEs and cooperatives to address job creation, income generation and to unlock economic opportunities in rural communities; 2) harnessing the use of innovative training to provide youth with modern skills to enhance their economic exchange value as well as to infuse Corporate Social Responsibility for promoting wider social benefit from the application of innovative technology; 3) expanding the use of Islamic Finance to grow the halal ecosystem, modest fashion industry, infrastructure development and social finance; 4) harnessing the use of disruptive technologies for the wider benefit of a more inclusive society; and 5) developing strategies to enhance the potential of creative industries to spread economic growth.
The positive outcome of the 12th WIEF will be further strengthened by the implementation of the 10 projects for which memoranda of understanding were signed and exchanged. Totalling US$899.6 million, the 10 memoranda involving 13 Malaysian, eight Indonesian and two Japanese corporations will have a significant impact on the economy of ASEAN and neighbouring regions.
Malaysian property developers Sime Darby Berhad, SP Setia (Indonesia) Sdn Bhd and I&P Group Sdn Bhd signed an agreement worth US$862 million with Indonesia’s PT Hanson International to jointly develop affordable housing in the Maja area in West Jakarta, Indonesia.
Another significant collaboration was the tri-partite agreement amounting to USD12 million made between Kumpulan Perubatan Johor Sdn Bhd and two Japanese companies, Sojitz Corporation and Capital Media Co. Ltd, for the setting up of an Oncology Centre at Rumah Sakit Medika Bumi Serpong Damai in Tangerang, Indonesia.
Malaysia’s Majlis Agama Islam Negeri Johor (MAINJ) signed an agreement with UMLand J-Biotech Park Sdn Bhd to spearhead the development of Johor Halal Park, envisioned to become the first premium bio-halal industrial park in Malaysia with world-class facilities and halal eco-system.
In the field of education, Brainy Bunch Sdn Bhd inked an agreement with PT Brainy Bunch Indonesia giving the Indonesian company the rights to set up Brainy Brunch Islamic Montessori pre-schools in Indonesia.
Bursa Malaysia and Indonesia Stock Exchange signed a pact to develop Islamic capital markets in both countries with the goal of establishing Malaysia and Indonesia as a leading Islamic capital market hub in the world.
These developments are certainly in keeping with what Prime Minister Dato’ Sri Najib Razak said at the 12th WIEF, “We look forward to opportunities to collaborate with other jurisdictions, as well as with industry and academia, to expand international connectivity, strengthen talent and capabilities, and grow the global Islamic capital market for the benefit of all.”
In closing, the Chairman of WIEF Foundation, Tun Musa Hitam stated that the agreements between national and regional corporations proved that WIEF has been a strategic platform for important business and economic collaborations to strengthen and connect the Muslim nations with their regional and global counterparts. “This reflects our confidence, courage and decisiveness in responding to our current economic challenges, in which collaborative model that enables joint value creation is important and necessary in order to create a levelled playing field between the Muslim and non-Muslim world.”
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About the World Islamic Economic Forum (WIEF)
The WIEF Foundation, a not-for-profit organisation based in Kuala Lumpur, organises the annual World Islamic Economic Forum, a world-class business platform showcasing business opportunities in the Muslim world, and runs programmes of the various initiatives of the Foundation that strengthen people partnership and knowledge exchange between Muslim and non-Muslim communities across the globe.
The WIEF has previously held forums in Malaysia, Kazakhstan, Indonesia, Kuwait and
Pakistan, the United Kingdom and United Arab Emirates and aims to bring together Muslim and non-Muslim communities through the common language of business.
The 12th WIEF was held at the Jakarta Convention Centre from August 2 – 4, 2016.
More information about WIEF: http://wief.org/
For media queries, kindly contact:
• Fiscal Policy Agency Ministry of Finance : ikp@fiskal.depkeu.go.id
• Wai Fai Lo : waifai@wief.org or +6012 209 0068
