The Bangko Sentral ng Pilipinas (BSP) and the Asian Development Bank (ADB) encouraged representatives from the Indonesian and Malaysian business sectors to take advantage of Islamic finance opportunities in the Philippines.
During roadshows held in Kuala Lumpur (KL) from September 23 to 25 and in Jakarta from September 17 to 19, both the BSP and the ADB highlighted the Philippines’ readiness to accept investments for and grow its Islamic finance sector.
The BSP has earlier introduced regulatory reforms to encourage greater participation in Islamic banking by both domestic and foreign banks. The central bank also supports the entry of new players in the Islamic finance sector as part of its broader commitment to enhance financial inclusion and foster economic development in the country, especially in the Bangsamoro Autonomous Region in Muslim Mindanao.
During the delegation’s engagement in KL, BSP Deputy Governor Chuchi G. Fonacier said that “beyond serving a niche market, our vision extends to building a comprehensive Islamic financial system that provides ethical financial solutions that benefit everyone, regardless of faith.”
Meanwhile, BSP Assistant Governor Arifa A. Ala told the Indonesian Chamber of Commerce and Industry that “the Philippines is ready and fully committed to building a vibrant Islamic finance ecosystem, and together, we can unlock the full potential for expanded financial inclusion.”
ADB senior counsel Maria Cecilia T. Sicangco and finance specialist Mohammad Farrukh Raza[1] presented Islamic finance opportunities in the Philippines from the ADB-commissioned report, “Unlocking the Potential of Islamic Finance in the Philippines: A Market Analysis and Landscape Report.”[2]
Around 100 senior executives from Islamic banks, fintech companies, industry associations, lawmakers, standard-setting bodies, and regulatory authorities attended the roadshows.
Separate meetings were also held to present the Philippines’ positive economic outlook that complements the Government’s proactive and calibrated approach in developing and growing the local Islamic finance industry.
The roadshows benefitted from earlier bilateral meetings in Jakarta with the Association of Indonesian Sharia Banks represented by Bank BJB Syariah, Bank Mega Syariah, Bank Syariah Artha Madani, Bank Syariah Indonesia, and Maybank Syariah; Hijra Islamic Neobank; and Panin Dubai Syariah Bank.
The BSP and ADB also held bilateral meetings in KL with HSBC Amanah Malaysia Berhad, INFOPRO, RHB Islamic Bank Berhad, Hong Leong Islamic Bank and MSIG Takaful Berhad, CIMB Islamic Bank Berhad, MUFG Bank Berhad, Al Rajhi Islamic Banking and Investment Corporation Berhad, AmBank Islamic Berhad, and Bank Islam Malaysia Berhad.