BSP, ADB Urge Malaysia, Indonesia to Invest in Philippine Islamic Finance

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The Bangko Sentral ng Pilipinas (BSP) and the Asian Development Bank (ADB) called on Indonesian and Malaysian business sectors to invest in the Philippine Islamic finance industry.

The appeal was made during roadshows held in Kuala Lumpur from Sept. 23 to 25 and in Jakarta from Sept. 17 to 19.

The BSP and ADB emphasized the Philippines’ readiness to foster Islamic finance investments.

The BSP has introduced regulatory reforms to attract local and foreign banks into Islamic banking.

The central bank supports new entrants in the sector to boost financial inclusion and drive economic growth, especially in the Bangsamoro Autonomous Region in Muslim Mindanao.

BSP Deputy Governor Chuchi G. Fonacier said in Kuala Lumpur 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.”

BSP Assistant Governor Arifa A. Ala, addressing the Indonesian Chamber of Commerce and Industry, stated 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 presented key insights from the ADB report, “Unlocking the Potential of Islamic Finance in the Philippines: A Market Analysis and Landscape Report.”

Around 100 senior executives from Islamic banks, fintech companies, industry groups, legislators, standard-setting bodies, and regulators attended the roadshows.

Separate meetings showcased the Philippines’ positive economic outlook, highlighting the government’s measured approach to developing its Islamic finance industry.

In Jakarta, bilateral discussions included the Association of Indonesian Sharia Banks and institutions such as Bank BJB Syariah, Bank Mega Syariah, and Panin Dubai Syariah Bank.

The BSP and ADB also met with leaders in Kuala Lumpur, including HSBC Amanah Malaysia Berhad and CIMB Islamic Bank Berhad.

These engagements underscored the Philippines’ commitment to expanding its Islamic finance sector through partnerships and international collaboration.