Human resource key to Islamic finance growth

HUMAN resource development is a key factor in helping boost Brunei's Islamic finance sector.

This was the collective conclusion from speakers at the International Conference on Islamic Finance organised by the Sultan Sharif Ali Islamic University (Unissa).

"If Brunei wants to develop the Islamic finance sector, they have to have the talent. Human resource is very important ... (but) doesn't necessarily have to be Bruneians," said Dr Zohra Jabeen, assistant professor from the Institute of Management Studies in Pakistan, who was a presenter at the conference. She added that a competitive environment has to be developed in order to attract the right talent.

She said Brunei has a plus point, because the government specifically wants to develop the sector and that there is a drive in this development.

"Brunei and Pakistan could work together and collaborate on many things, we have a population of about 16 million people and we have a very competitive environment in Pakistan for Islamic finance, and the Islamic banks in Pakistan could work with Brunei on a bank-to-bank basis to come up with some collaborative programmes," said Dr Zohra.

"Unissa offers a Bachelor Degree programme on Islamic Finance, to introduce Islamic finance to the workforce, and Brunei can also bring in people from all over the world, because now we are staying in a global environment and not just a small village, so we can exchange goods and services as well as knowledge," said Dr Mohamed Sharif Bashir, the dean of the Faculty of Business and Management Sciences from Unissa.

One of the recommendations from the keynote speaker, Dr Abdul Ghafar Ismail, a professor of Banking, Financial Economics at University Kebangsaan Malaysia (UKM), is to have institutions set up in Brunei offering programmes on specific jobs in Islamic finance comprising legal experts, risk managers and so on.

"If you want to improve your products or services, you need experts in Islamic finance, and from there you need to know how to translate your products into a legal document, so there needs to be a legal expert. You also need an expert in risk management, because contracts involve risks. So we need bankers who can deal with these issues from the products or the services that differ from conventional ones," he said.

One of the examples he gave was an institution that was developed in Malaysia to specifically concentrate on human resources within the Islamic Finance sector.

Dr Abdul Ghafar said that he also works as a research fellow for the International Syariah Research Academy for Islamic Finance in Malaysia, and they work closely with the industry.

"We work closely to synergise with the industry to contribute to the development of the Malaysian Islamic finance sector but also to help with all parts of the world," he said. He added that this not only helps with the development of the global financial sector but also to help disseminate knowledge by working with other countries.

He added that the regulatory body also would need to work closely with the industry and develop a partnership system to further grow the sector.

"Generally, you need experts in the field to help grow an industry, and you also have to make sure that those in charge have good skills, which is the main thing," said Ibrahim Bulushi, a graduate research assistant from International Islamic University Malaysia (IIUM), who is also doing his doctorate in Islamic finance.

He added that Brunei does not have to go far to bring in expertise from other countries as neighbouring countries like Malaysia and Singapore can also provide the skills needed.

The Brunei Times