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Source:
www.mas.gov.sg |
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Opening Remarks by Mr Ng Nam
Sin, Executive Director, Monetary Authority of Singapore |
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lslamic Finance Asia 2007, 13
Feb 2007, Singapore |
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An Excerpt |
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Singapore as an international financial
centre is keen to play a role in the development of Islamic Finance
through leveraging on its existing critical mass and capabilities in
wealth management, project financing and trade financing. |
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To this end, MAS work with the industry to
constantly review our tax and regulatory framework to ensure a level
playing field between Islamic and conventional financing. |
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This is to support and facilitate
financial institutions who wish to provide a range of Islamic
products and services to meet the needs of their clients and
investors. |
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We have reviewed our policies to
ensure that Islamic finance is not disadvantaged vis-┐-vis
conventional finance. |
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For example, we have waived the double
imposition of stamp duties on real estate financing which have
been structured under Shar'iah law. Concessionary tax treatment
for Sukuks is also similar to what we have done for conventional
bonds. |
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Regulatory wise, we have worked
proactively with Financial Institutions in allowing Islamic
Finance transaction under existing regulation. |
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For example, in 2005, the MAS
announced that banks in Singapore will be able to offer Murabaha
financing in Singapore. |
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This exemption is granted in
recognition of the product's fundamental characteristics as a
financial product, no different from conventional transactions. |
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MAS is also now a full member of the
Islamic Financial Services Board (IFSB) and we are currently part
of the IFSB Supervisory Review Process Working Group as well as
the IFSB Islamic Money Market Taskforce. |
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All these put together, along with
Singapore's open markets, efficient infrastructure and transparent
regulations allow Singapore to further develop itself as an
international financial centre offering Islamic Finance
possibilities. |
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Going forward, the growth of Islamic
finance in Singapore hinges on the commercial viability of such
products. |
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While understanding that there exist
different interpretations of Shar'iah products in the industry,
MAS will prefer to leave it to the internal Shar'iah boards of the
various banks to make this decision. MAS will continue to work
closely with industry players to allow the flourishing of Islamic
Finance within our existing legislation... |
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Full Text of Speech |
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Source:
www.mas.gov.sg News Release 13 Feb
2007 |
Islamic finance in Singapore
