Banks to work with ITFC to boost trade

THREE home-grown financial institutions are keen to collaborate with the International Islamic Trade Finance Corporation (ITFC) in a bid to increase trade volumes among the Organisation of Islamic Cooperation (OIC) economies.

Kuala Lumpur-based Tujuh Keajaiban Group of Companies, which acts as a consultant to the ITFC, said the three financial institutions are currently in preliminary talks regarding the potential tie-up.

The Jeddah-based ITFC is a member of the Islamic Development Bank Group.

Tujoh Keajaiban's chief executive officer Krishnan Ramamurthi yesterday did not name the local banks, except to say that potential areas of trade could involve commodities like rice, palm oil and rubber.

"The parties are now deliberating over the potential collaboration and conducting due diligence and it could take anywhere between three months to six months before anything can be finalised.

"This interest among the local financial institutions for this proposed tie-up came about during a recent trade delegation we facilitated for ITFC to Malaysia from July 16 to 18," he told a press conference here.

Also present was the company's director Zamani Abdul Rahman.

Krishnan said Tujuh Keajaiban, which was set up a year ago, is a trade advisory and consultation service provider.

"The recent visit by ITFC to Malaysia," he noted, "included roundtable discussions with Pelaburan Mara Bhd, Malaysian Investment Development Authority and leading home-grown financial institutions on going about advancing trade and bilateral cooperation in the field of Islamic Finance."

Krishnan said his company is in discussions with potential customers such as Malaysian companies engaged in import and export activities such as those importing coal from Indonesia and a firm that imports fertilisers and resells them domestically.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed in May had said that trade between Malaysia and the OIC states is expected to grow in double-digits this year, and there is potential to increase trade and attract investment from Islamic countries, notably from the Middle East to Malaysia.

He had also stated that IDB will provide an important platform to promote Malaysia overseas and in turn, provide Malaysian businessmen access to OIC states.