The 1st Annual World Islamic Banking Conference: Asia Summit 2010 - “Seeking New Growth Horizons” opened its inaugural Asia Summit on Monday.

Addressing international delegates at the conference, Singapore Minister for Trade and Industry Lim Hng Kiang said that by strengthening linkages at all levels, the Middle East and Asia can complement each other’s development and seek out growth areas for mutual benefit.
He outlined that the financial crisis has not diminished the Asian growth story; in fact Asia has emerged even more compelling with growing exports and investment spending, for which Singapore is well-positioned to be the launch pad for the Persian Gulf Cooperation Council businesses entering and investing in Asia.
He indicated that the general outlook for Islamic finance remains positive despite the negative spill over from the financial crisis, adding that “uncertainty and fear” from the global financial crisis have abated, though risks remain..
And Singapore, as a financial center offering a full suite of financial services, stands ready to play a wider developmental role in promoting Islamic finance in response to rising regional demand for Shariah-compliant products and services.
He added that with greater awareness and adoption in more financial centers, Islamic finance is poised to play a bigger and more central role in global finance.
Mr Lim, who’s also deputy chairman of the Monetary Authority of Singapore, said the Islamic finance industry is expected to continue to grow at twice the pace of its conventional counterpart.
He said some surveys estimate that the sector will soon cross the $1 trillion mark in total assets.
He noted that the Middle East and Asia can complement each other’s development and explore new growth areas for mutual benefit. But he cautioned that the Islamic finance industry needs to mindful of the lessons learned from the financial crisis two years ago.
It also needs to pay greater attention to issues related to capital adequacy, market liquidity and risk management, he said.
Mr Lim said overcoming these challenges will require strong cooperation within the industry and across the different jurisdictions.
The World Islamic Banking Conference has been held successfully in Bahrain for the past 16 years.
The WIBC Asian Summit will now be an annual event anchored in Singapore and will become an important event on the Islamic finance calendar over time and catalyze even greater engagement between the Middle East and Asia.
(Source: Dispatches)