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Enhancing Sustainability of Global Businesses: Role of the Islamic Capital Market

Registration closed
Date: 15 - 17 August 2016
Venue: Conference Hall 2, Securities Commission Malaysia
Accreditation: SIDC-CPE Approved: 10 CPE points

 

Introduction

The Malaysian capital market recognises the need to incorporate environmental, social and governance (ESG) values in addition to the financial performance of global businesses, in order to enhance its long-term value and sustainability of global businesses. Sustainability encompasses the quality of interaction and the impact this brings to a company and its environment, its society and its corporate governance practices, while still ensuring the endurance of its business, particularly during periods of global uncertainty and volatility.

The awareness of ESG responsibility itself has grown over the years and the advancement of the ESG agenda has continued through development and facilitation by regulators and the industry. Over the years, it has progressively strived forward in realisation of the purpose of this responsibility – and the expansion of this is evidenced by companies issuing products with returns that conserve the ESG aspect of their business. 

Islamic Capital Market in Malaysia

The Islamic capital market has the potential to seamlessly link and integrate ESG practices with the sustainable development agenda. Reflecting a rise in ESG consciousness, the FTSE4Good Bursa Malaysia Index – the first ESG index launched in December 2014 has shown a considerable increase of 42% in the past year in its number of constituents. Significantly, 74% of the total constituents in the same index, and 47% of total constituents in the FTSE4Good ASEAN 5 index are Shariah-compliant respectively. On a broader perspective, more than 70% of listed stocks in Malaysia are Shariah-compliant as at November 2015, pointing to the wide acceptance of Islamic products by investors.

In 2015, the size of the Islamic capital market in Malaysia grew 6.7% to RM1.7tril, compared to the previous year. Shariah-compliant securities constituted 73% of the 903 listed securities on Bursa Malaysia. The number of Islamic unit trust funds stood at 193 compared with 188 funds as at end-2014, with net asset value of RM52 billion . Sukuk issuances by government and corporates in 2015 represented 43.57% of total bond issuances.

Faced with rising issues of global poverty, community development and rural-urban economic divide, Malaysia calls upon scholars and policy-makers to work together with regulators around the world and look more closely at ethical and religious-based economic systems in seeking long-term sustainable solutions. 
 

About this programme

This programme will highlight the significant strides that Malaysia has made towards establishing an international Islamic financial centre in pursuing the development agenda of the Islamic capital market. This agenda serves to present and share Malaysian practices and experiences through thematic topics, segregated by specific areas of the capital market and empowered by high profile industry practitioners. We will explore revolutionary business ideas and best market practices promoting convergence of the ESG criteria with Islamic principles that may be used to enhance and drive sustainable development of global businesses.
 

Who Should Attend

Senior regulators, academicians and financial industry practitioners

  • Programme Delivery

    The Programme

    This programme is presented in two parts:

    Day 1:

    • Global Islamic finance outlook
    • Overview of the Islamic capital market in Malaysia
    • Sustainable growth of the Islamic capital markets and ESG
    • Challenges of global standards setting in ICM

    Discussion focus
    The global outlook of Islamic finance. Islamic capital market (ICM) and ESG space, convergence of the two, and integrating them in investments. It explains how important ESG is to investments, and and its potential as key driver for the sustainable development of global businesses around the world. It will discuss the broadening of market access to financial investments and capital that has been receiving increasing attention particularly within the ESG area in the Islamic finance space today.

    Days 2 & 3:

    • Islamic capital market’s evolving products and services
    • Role of industry, investors and regulators in driving the ESG agendas
    • Future direction of Islamic capital markets
    • Strengthening conventional risk management  with ICM risk-sharing solutions

    Discussion focus
    Facilitating and promoting development ideas of ICM market products and services to embrace the wider global market. Widening of financial access to the Islamic capital market, facilitating and encouraging the provision of high-value ethical investment choices that commensurate with investor risk appetite and resonate with their deeper conscience values.

    Learning Outcomes

    Participants will be able to

    • Update themselves with the global market outlook of Islamic finance and capital market development trends
    • Gain unique insights into the regulator’s and industry’s roles in structuring and driving the progressive development of the ICM as well as the ESG agenda
    • Evaluate information with in-depth knowledge of current and new Islamic products and market trends of the ICM industry and ESG environment through highly focused presentations
    • Assess and relate market and developmental issues in ICM by identifying key challenges and opportunities in ESG, through cohesive and interrelated panel discussions
    • Examine and appraise some of the functional issues unique to the ICM and ESG area, and distinguish pertinent information for the ICM industry
    • Verify and exchange views with prominent experts, industry leaders and ICM regulators on current and future developments in ICM
    • Discover and justify alternative ways to overcome sustainability challenges

    Methodology

    The programme is offered in an open learning environment allowing participants to discuss lessons learnt, share insightful experiences and explore thought-provoking ideas by experienced regulators, standard-setters, bankers, lawyers, compliance professionals and industry observers to derive possible development strategies that further the cause of Islamic finance.

  • Programme Outline

    Overview Of The Islamic Capital Market (ICM)
    By the end of the Introductory Workshop, participants will be able to explain the value proposition of Islamic finance, recognise its basic principles and governing framework, and discuss the composition of the Islamic finance ecosystem.

    DAY ONE - Monday, 15 August 2016
    08:45 am Registration
      Introduction to the Islamic Markets Programme 2015 Workshop
    09:00 am Doa' Recital
    09:05 am IMP 2016 Programme Briefing
    09:15 am Welcome Remarks : Islamic Markets Programme 2016
    • Business sustainability and the role of Islamic finance
    • Convergence of Islamic and conventional systems
    • Enhancing growth in ICM with fin-tech solutions and retail market expansion
    • Role of government and regulator in developing the ICM
    • Promoting and facilitating ESG and Shariah compliance
    10:00 am Photography Session and Coffee Break
    10:30 am Global outlook of Islamic finance industry
    • Overview and current trends
    • Opportunities, potentials and growth drivers
    • Key issues and challenges for markets and regulators
    11:30 am ICM industry in Malaysia & development role of the regulator 
    • Overview of the ICM industry and its key components
    • Shariah principles and compliance standards
    • Regulatory and governance framework
    • Facilitating ESG and Shariah compliance
    12:30 pm Lunch
    2:00 pm Challenges of global standards setting for the ICM (panel session)
    • Update on the progress of international regulatory consistency across capital markets
    • Initiatives to encourage uniformity and convergence of practices across different jurisdictions
    • Promoting  ESG compliance in standard setting initiatives
    3:30 pm Coffee Break
    3:45 pm Integrating ESG consciousness into business practices 
    • Stepping up standards in stakeholder value creation
    • Bursa Malaysia and the ESG indices
    • ESG and its parameters
    5:00 pm End of Day 1
    DAY TWO - Tuesday, 16 August 2016
    09:00 am Islamic social values in business practice
    • Social values reflected in Islamic business practices – Case study examples
    • Converging Islamic finance products and services with good ESG practices - Case study examples
    09:45 am Islamic funds, wealth management and ESG
    • Asian outlook -  Trends, opportunities and challenges  
    • ESG funds growth and performance
    • Rise of sustainability-oriented investors
    10:30 am Coffee Break & Networking
    10:45 am Driving the sustainability in agenda
    • Sukuk & Ethical Investment and Waqf Sukuk
    • The trend of SRI Sukuk, Green Sukuk, CSR Sukuk
    • The challenges faced by global players
    • Sukuk Waqf: A New Dawn
    11:45 am Islamic collective investments schemes
    • Trends beyond equity & Sukuk portfolios
    • Current challenges of cross-border ICIS growth
    • Strengthening the ICIS regulatory framework
    12:30 pm Lunch
    2:00 pm Islamic finance as the enabler for Halal industry development
    • The expanding role of Islamic finance in facilitating the growth of the Halal industry
    • Integrating the Halal mindset into Islamic Finance through successful cross-border collaborations
    • Cross border regulatory and market challenges
    3:15 pm Coffee Break
    3:30 pm ICM products, markets and the necessity of a robust but flexible framework
    • Ideas to profile ICM as a convergence of humane values
    • Refining ICM as the alternative channel to realise investment goals of global investors
    • Ease of entry and exit for issuers and investors
    • How industry and regulators can work together in furthering ICM development
    • Strengthening the convergence of ESG values with the Islamic capital market values
    5:00 pm End of Day 2
    DAY THREE – Wednesday, 17 August 2016
    09:00 am
    FinTech "Storm" - Disruptions and Opportunities
    • Global Fintech Investment in the Capital markets
    • Fintech innovation in the Capital Markets Space
    • Fintech influence in ICM development and the challenges
    09:45 am Hedge it or lose it - exploring derivatives hedging in Islamic markets with issues and challenges
    • Hedging concepts and principles
    • Different markets' distinctions on construction, price & value
    • Islamic markets within the spectrum of markets including derivatives hedging markets
    • Shariah issues and challenges
    10:30 am Coffee Break & Networking
    10:45 am Photography Session with all speakers
    10:50 am Managing investments in volatile environments
    • Challenges of appraising market volatility
    • Diversification issues and challenges
    • Managing irrational expectations
    • Balancing investment portfolios
    • Investor protection and risk tolerance
    • Advice to global regulators on enhancing sustainability of global businesses in volatile environments  
    12:30 pm Lunch
    2:00 pm Capital raising and crowdfunding
    • Capital raising opportunities and challenges for ESG projects
    • Role of the private sector
    • Investor protection challenges in crowdfunding
    • Success stories in Shariah capital raising
    2:40 pm Facilitating greater ICM retail participation 
    • Widening market accessibility to retail investors
    • Engaging industry for the development of ICM- ESG products
    • Challenges of educating the retail market through digital platforms
    • The development of Shariah-compliant ESG products
    3:20 pm Coffee Break
    3:30 pm Empowering Investors: SC Malaysia’s InvestSmart initiative
    3:35 pm Raising awareness of social impact investments
    • Developing practical solutions for end-users 
    • Linking investments with the ESG conscious investor
    • Return objectives vs. Social KPIs – Sustainability in global business
    4:10 pm Building “true value” in a changing world: Are we expecting the unexpected?
    • “Capital” in the value creation process
    • Mapping social opportunities
    • Measuring corporate sustainability, maximising stakeholder value
    5:15 pm End of IMP 2016

    The programme for the Islamic Markets Programme (IMP) 2016 is correct at the time of publication. However, the Securities Commission (SC) and the Securities Industry Development Corporation (SIDC) reserve the right to change dates, the programme and speakers without notice as a result of circumstances beyond their control.
  • Programme Fees

    The following packages are available to suit your needs:

    Package Date Fee
    A Local Participants 15 - 17 August 2016 RM 4,770
    B International Participants* 15 - 17 August 2016 USD 1,300

    Fees quoted are inclusive of 6% GST
    *Flight, travel documents and hotel accommodation should be arranged by participants. Any transaction costs with respect to international banking transactions will be borne by the participant.

 

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