The last Quarter of 2011 was an interesting one from this Blog's Weltanschauung!
Ever since, a Content Advisory mandate for an Islamic Finance programme were accepted by AHM CREATES for a media company...members of the IF industry would just divulge more info to a certain Consultant Producer than what is normally revealed during "normal" conversation.
In November, the 5th International Islamic Capital Market Forum was held at Lanai Kijang, KL. What was interesting was the wordings in the Forum's flyers - "....., where much of its product structures essentially replicates that of conventional finance. These structures have been based on debt-based contracts and leverage; and are further exposed to the fractional reserve banking system. ........"
Read 2nd Page, 4th Para:-
To the uninitiated, Islamic Finance purists had slowly but surely over the years put forward the argument that debt-based contracts is NOT the way forward for IF but rather equity-based contracts. The purists had also indicated that Fractional Reserve Banking is " BACKDOOR RIBA" !!!
A week later, the Tun Ismail Ali Chair Public Lecture was held at Sasana Kijang, KL. The topic for the lecture was "Conceptual & Analytical Issues on IF from the Perspective of Conventional Economic ".
Not mincing his words, Prof.Emeritus Ajit Singh said during the Press Conference - "....it is difficult to differentiate between speculative and non-speculative elements in the share market. Hence, close down the market(s) and let the banks step in......."
It might just be a coincidence and critics would accuse the writer of making a mountain out of a mole hill BUT, to the keen observer....this academic banter sure sounds like "shadow play" between the regulators. Add to the grapevines that representations have been made to the powers that be to have a nominee from the Central Bank to head the SC once the existing Chairman's tenure is over and one can see why the fireplace is starting to smoke!!!
On another matter, it's sad that someone's ego gets in the way of propagating Islamic Finance and ultimately Islam. This was what happened when a person of authority cancelled an interview which was supposed to publicise the respective institution Islamic Finance courses and ultimately Islam itself!
HIKMAH DiRHAM, Launched in Tg. Malim-PERAK
7 months ago