Indonesia, Malaysia Invited To Explore Islamic Finance Opportunities In The Philippines

The Bangko Sentral ng Pilipinas (BSP) and the Asian Development Bank (ADB) invited Indonesian and Malaysian business representatives to explore opportunities in the Philippines' growing Islamic finance sector.

Around 100 senior executives from Islamic banks, fintech companies, industry associations, lawmakers, and regulatory authorities attended the roadshows. I Image: Bangko Sentral ng Pilipinas

At roadshows in Kuala Lumpur from September 23 to 25 and in Jakarta from September 17 to 19, the BSP and ADB highlighted the Philippines’ readiness to attract investments in Islamic finance.

The BSP has introduced regulatory reforms to encourage participation in Islamic banking by domestic and foreign banks, aiming to enhance financial inclusion and economic development, particularly in the Bangsamoro Autonomous Region in Muslim Mindanao.

During the Kuala Lumpur engagement, BSP Deputy Governor Chuchi G. Fonacier stated, “Our vision extends to building a comprehensive Islamic financial system that provides ethical financial solutions benefiting everyone, regardless of faith.”

BSP Assistant Governor Arifa A. Ala informed the Indonesian Chamber of Commerce and Industry that "the Philippines is ready and fully committed to building a vibrant Islamic finance ecosystem, and together, we can unlock its full potential for expanded financial inclusion."

ADB senior counsel Maria Cecilia T. Sicangco and finance specialist Mohammad Farrukh Raza presented Islamic finance opportunities from the ADB-commissioned 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 associations, lawmakers, and regulatory authorities attended the roadshows.

Separate meetings were held to showcase the Philippines’ positive economic outlook, which supports the government's calibrated approach to growing the Islamic finance industry.

The roadshows were complemented by earlier bilateral meetings in Jakarta with the Association of Indonesian Sharia Banks and in Kuala Lumpur with institutions like HSBC Amanah Malaysia Berhad, RHB Islamic Bank Berhad, and CIMB Islamic Bank Berhad.