Brunei’s Islamic financial assets represent 57.9 per cent of the country’s total financial services market share in the fourth quarter of 2023, said Minister at the Prime Minister’s Office and Second Minister of Finance and Economy.
Yang Berhormat Dato Seri Setia Dr Haji Mohd Amin Liew Abdullah in his speech at the 16th IFSB Summit said that deposit-taking institutions played a pivotal role in the growth of the Islamic financial services industry, contributing 95.2 per cent to the total Islamic finance assets and 4.8 per cent to takaful entities.
“Islamic finance strives to promote economic prosperity, achieve socio-economic equality and create socio-economic justice. These fundamental attributes bolster its resilience against financial downturns, climate risks, digital disruptions, and geopolitical tensions,” he said.
The minister further said that the financial industry has also made significant contributions towards advancing Islamic finance.
These include pledging $2 billion by a local Islamic bank towards sustainability efforts; the introduction of digital solutions for takaful products; the offering of Islamic investment products and the milestone of a local Islamic asset manager becoming a signatory to the United Nations Principles for Responsible Investment.
The country’s Islamic finance sector’s adoption of digitalisation initiatives has altered traditional financial practices with cutting-edge technology tailored to Islamic principles.
“Beyond the financial sector, other industry players, such as FinTech and telecommunication companies, have played their parts in the progress of Islamic finance in Brunei,” said the minister.
He added: “We have seen the introduction of e-Zakat payment gateways and crowdfunding platforms for MSMEs – initiatives that have also contributed to the realisation of the country’s vision to become a smart nation.”
The implementation of digital transformation such as digital signatures and digital contracts enhances the ability to offer customers greater convenience, security and accessibility to financial services.
“With this transformation, we aim to foster inclusivity and ensure our continued adaptability in an increasingly digitalised banking industry,” said YB Dato Dr Amin.
Brunei is committed to addressing climate change issues at the national and global stages with the submission of Nationally Determined Contributions (NDCs) to the United Nations Framework Convention on Climate Change (UNFCCC).
“As we convene at this summit, let us prioritise sustainable growth, innovation and financial inclusion,” said the minister.
THE BRUNEIAN | BANDAR SERI BEGAWAN
