Abdul Rasheed Ghaffour: Welcoming remarks - Global Forum on
Islamic Economics and Finance
Welcoming remarks by Mr Abdul Rasheed Ghaffour, Governor of the Central Bank of
Malaysia (Bank Negara Malaysia), at the Global Forum on Islamic Economics and
Finance, Kuala Lumpur, 28 May 2024.
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It is with immense pleasure and gratitude that I welcome you to the Global Forum on
Islamic Economics and Finance or GFIEF. GFIEF is a continuation from the 15th
International Conference on Islamic Economics and Finance, that was held in February
this year. The discussions and research papers presented earlier have laid the
groundwork for fostering a sustainable and humane economic framework, which we
hope to advance today.
There is a myriad of opportunities and challenges facing the global economy. Global
trade is expected to strengthen, inflation is moderating, and positive labour market
conditions continue to support global growth. Nevertheless, downside risks remain as
the threat of further escalation of geopolitical tensions persists, and
higher-thananticipated inflation outturns might contribute to further volatility in the global financial
markets.
The climate crisis and environmental degradation also looms large, not only wreaking
havoc in our physical world, but also threatening the lives and livelihoods of many. It is
estimated that if no mitigating actions are taken, climate change could slice off up to
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18% of global GDP by 2050 . These headwinds will no doubt aggravate economic
inequality - widening disparities not only across, but within, countries.
The principles of Islamic economics and finance hold the promise of driving
valuebased growth, beyond mere profit goals - one that is balanced, progressive,
sustainable and inclusive. Aligned with the objectives of Shariah, we are called to foster
shared prosperity.
Throughout the history of Islamic civilisation, we have observed that the adoption of
Shariah principles as the guiding light has coincided with periods of unparalleled
societal advancement, marked by diminishing poverty and robust economic prosperity.
As remarked by Ibnu Al-Qayyim, "in its entirety, Shariah is justice, mercy, benefit, and
wisdom". Indeed, the fundamental values of Islamic economics and finance offer a way
forward to reflect and rethink our approaches in addressing challenges facing the global
economy.
As we reflect upon our duty as vicegerents (khalifah) in this world towards "Shaping a
Resilient Global Islamic Economy through Values-based Reforms" - which is the theme
of our forum - let's ponder on three questions:
How can we more effectively apply the principles of Islamic economics and
finance to tackle pressing global challenges facing our world today?
Second, how can we ensure that Islamic finance remains grounded in its
principles and values in an evolving financial landscape characterised by
innovation and technological advancement?
Third, what steps are needed to enhance our economic, financial and monetary
system that will further embody, both in form and substance, the fundamental
principles of Islamic economics and finance?
It is our hope that these questions can guide us along this journey, urging us to reflect,
engage, and collaborate to seek practical solutions "via values-based reforms" towards
a shared vision of a more resilient global Islamic economy.
I believe that there will be many enlightening discussions over the next two days. But
allow me to share very briefly some propositions for consideration:
(a) Firstly, embodying Maqasid al-Shariah in economic and sustainable structural
reforms;
(b) Secondly, advancing innovation in tijari (trade) and waqf as catalysts to
reinforce an inclusive and resilient socio-economic model, where Islamic finance
plays a greater role in delivering value-based solutions; and
(c) Thirdly, strengthening global integration to propel mutual economic development
and shared prosperity among Islamic nations, including through increased
intratrade within the OIC.
We look forward to the efforts that will support these propositions. This includes closer
engagements with multilateral institutions and investors, as well as initiatives to
enhance the regulatory environment to facilitate the application of a more diverse range
of Shariah contracts.
Ladies and gentlemen,
To conclude, GFIEF represents a significant collaboration, bringing together over 2,300
delegates from 75 countries. The forum is made possible through the patronage of the
Ministry of Finance Malaysia, and the strong support of all our partners. Thank you to all
who have made this forum a reality and success.
My deepest thanks also go out to the honourable PM for gracing our event today, our
esteemed speakers and participants. As we engage in meaningful dialogues, let us
harness our creativity to challenge and question the status quo, contributing ideas and
solutions based on Islamic economics and finance to address economic and social
challenges.
On that note, thank you.
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Source: This is How Climate Change Could Impact The Global Economy | World
Economic Forum (weforum.org)