Thai Islamic finance market bid faces hurdles
By Orathai Sriring
BANGKOK, June 26 (Reuters) - Thailand faces many obstacles to developing an Islamic finance market to compete for Middle East funds seeking to invest in Southeast Asian economies, officials said on Thursday.
The predominately Buddhist country, home to 6 million Muslims, still lacks a legal and regulatory framework to comply with Islamic law, Finance Ministry deputy permanent secretary Sathit Limpongpan told an Islamic finance conference in Bangkok.
"Thailand has every intention to develop an Islamic banking system, but there is a long way to go," he said.
Thailand lags far behind its Muslim majority neighbour, Malaysia, which accounts for about two-thirds of global issues of Islamic bonds, called sukuk.
Islamic bonds do not pay interest, which is banned as usury under Islamic law, and are structured as profit-sharing or rental agreements underpinned by physical assets.
Sathit said a working group was studying ways to adapt Thailand's financial reporting, accounting and tax systems. Another goal was to develop a secondary market.
"We are still at an early stage, but we can benefit from the experience of those who have travelled the path ahead of us," Sathit said, noting Malaysia's expertise in Islamic fund management and insurance.
The value of assets currently under Islamic finance is estimated at $1 trillion and growing at an estimated rate of 10-15 percent a year, according to the Asian Development Bank. Continued...
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India during the Reuters India Investment Summit in Mumbai and Bangalore. Full Coverage | Blog
An icon bows to changing times
With his Playboy Enterprises in talks to be sold for about $300 million, the 83 year-old Hugh Hefner will be giving up control over the iconic adult entertainment empire he founded that was instrumental in shaping society's opinions on nudity, sex and free speech. Full Article





India
US
UK









