Banks, Govt Told To Back MMEs
By Sobrina Rosli

Bandar Seri Begawan - The banking sector in Brunei Darussalam - with government support - should strengthen its efforts to accommodate micro and medium-sized enterprises (MMEs).

Salma Abdul Latif, director of UBD's Centre for Islamic Banking, Finance and Management, said the development of these types of enterprises can contribute to the country's economy and help alleviate poverty.

To trigger the development of MMEs, they should be provided access to better banking services, Salma said, adding that to develop a, clear policy for MMEs in Brunei, UBD is to hold a conference. Jointly organised by the UBD and the Islamic Research and Training Institute - a member of the Islamic Development Bank Group from Jeddah. The conference is themed: "Enhancing Islamic financial services for micro and medium-sized enterprises" and will be held between April 17-19, this year.

Salma said that through the conference they hope to help trigger the development of MME's, provide them access to better banking services and develop a clear policy for MMEs in Brunei.

"There is 98 per cent of total business establishments are MMEs, providing 92 per cent of employment in the private sector, business activities which need to be highlighted and supported."

"There needs to be a synergy between the government and' MMEs to develop this sector, as this can become a big contributor to Brunei's' economy," said Salma.

Salma said that the characteristics of Islamic financial instruments fit very nicely in the financial cycle. She gave an example of a person who had a business contract but was unable to develop his business due to financial circumstances.

The system of Bai Al Salam is then used. This term refers to advance payment for goods to be delivered at a later time.

"There is a rising trend of women entrepreneurs in Brunei and banks should have a certain sector just for women," she said.

Speakers from all over the world will present papers at the international conference to be held at The Empire Hotel and Country Club.-- Courtesy of The Brunei Times

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