License To OCBC
By Lyna Mohammad

Bandar Seri Begawan - The proposed merger of the', two Islamic Banks, Islamic Bank of Brunei (IBB) and Islamic Development Bank of Brunei (IDBB) and its Takaful companies, is a further move to strengthen the financial sector, that His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam has consented to, in principle.

The merger will strengthen and enhance efficiency, competitiveness and capacity, thereby enabling them to develop new products and services including investment banking, fund management and corporate and investment advisory. I

"This move will also help them to explore further business opportunities at the regional and international levels both in banking and insurance," said Pehin Orang Kaya Laila Setia Dato Paduka Awg Hj Abd Rahman Hj Ibrahim, Minister of Finance II, at the official opening of the Oversea-Chinese Banking Corporation (OCBC) Ltd inaugural International Islamic Banking Branch.

As the country is now in a position to promote the international growth of Islamic financial service, BIFC welcomes the presence of OCBC whose oversea network will create new opportunities in the nation's banking sector, the minister noted-in his speech.

OCBC has obtained a full international Islamic Banking Licence from Brunei International Finance Centre (BIFC) of Ministry of Finance, which makes it the first foreign bank to be granted the licence.

The decision by OCBC, with encouragement from BIFC to pursue certain of its business objectives from Brunei, underlines several important developments that have occurred in recent years.

Such developments include the growing maturity of Southeast Asia's capital markets; exemplified by the emergence of economies such as Singapore as global players and by OCBC as an important banking institution in the region.

Next is the diversity of Islamic finance using financial instrument that not only satisfy the strict criteria of Islamic investors and borrowers but which also exerts a powerful, positive humanitarian influence on the direction of ' important capital investment.

The issuance of a full international Islamic Banking Licence to OCBC defines the maturity of Brunei's financial services sector, Pehin Awg Hj Abd Rahman said.

He further noted that with the limited human resources here, a dynamic approach has been employed, developing instead specialist financial skills.

Speaking at the official opening of OCBC yesterday at the Sultan Haji Hassanal Bolkiah Foundation Complex, the minister highlights that the accumulated knowledge of

Islamic banking owes much to His Majesty.

His Majesty’s vision ensured its early adoption in the sultanate and whose commitment has made certain of its continuing development at both academic and practical levels, he added.

Singapore and Brunei's common history has been shaped by the sea that separates. both nations yet connects them, linking its people and trading enterprises since the time of the first navigators.

Now, although sea-lanes still carry their merchandise, new forms of trading, using technologies offer fresh commercial opportunities.

"Financial products that were unheard of, when our nations first traded, can now be bought and sold in the world's capital markets, slower to develop, but now rapidly expanding, is a range of Islamic financial instruments".

Such Islamic financial instruments are 'Sukuk', 'Murabaha' and `Ijarah', these of which have met the rigorous compliance standards-of Syariah Law.

He added that the presence of internationally known names such as OCBC is testimony of the growing recognition and confidence of the international community on Brunei's role in global business.

The flexibility to adapt to changing needs of the market is an important feature of BIFC and the recent amendment to the International business Companies Order consented to by His Majesty that was enforced last January provides a good example

The amendment, among others, disclosed the minister, contains a provision which allows residents to hold shares in international business companies.

It is hoped that with this amendment, will enable Brunei residents to reap benefits.

"Likewise, as Brunei Darussalam continues to keep abreast of global developments in securities market, the Securities Order has recently been amended to be in line with testimonial standard. -- Courtesy of Borneo Bulletin

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