The Islamic Finance Working Party Annual Reception 2023, returning after five years, was successfully concluded yesterday (23 November). The event, organised by the Law Society’s Islamic Finance Working Party, was themed “Moving Into the New Phase: The Islamic Market is Not Future. It is Here Now.” This theme reflects the dynamic landscape of Islamic finance, which has firmly established its presence in the global market.

The recent panel discussion on Islamic Finance, led by President Lawsoc Mr C M Chan and VP Lawsoc Mr Amirali Nasir, VP Mr Tong and Secretary General Ms Heidi Chui, brought together experts and stakeholders to explore the opportunities and prospects of this growing sector. The Chief Imam of Kowloon Mosque, Mr. Muhammad Arshad, and Mr.ALI From TYC Finance were also invited to attend and participate in the discussion. The discussion highlighted Malaysia's significant contributions and principles in Islamic finance, emphasising the encouragement of Islamic investment for individuals attending Hajj. 

Mr Yazrin Syakhairi Mahlan, Trade Commissioner of MATRADE Hong Kong, shed light on various aspects of Islamic finance, including sukuk, representing a substantial segment. Surprisingly, 40% of customers in this field are non-Muslims, demonstrating the appeal and inclusivity of Islamic finance in a multicultural society. Malaysia emerged as the largest sukuk issuer, and the benefits of this investment avenue were emphasised for all subscribers. 

Robert Lee, a Legco Member representing the financial services sector in Hong Kong, acknowledged the presence of sukuk in Hong Kong, highlighted past successes in fundraising for companies compliant with Islamic finance and emphasised the need for a comprehensive policy approach from a macro perspective. 

The discussion also touched upon integrating Shariah principles into the legal system, with Mr Yazrin highlighting Malaysia's adoption of the common law legal system. The longstanding presence of halal certification in Hong Kong and its positive impact on businesses, such as KFC, was an example to learn from. 

The focus was identifying and capitalising on opportunities to promote Islamic banking products in Hong Kong. 

The panellists also highlighted the significance of diversification and new market opportunities. Robert Lee emphasised the need to consider geopolitical factors and broader financial intermediaries to foster growth and attract investment from the Middle East and Malaysia. 

Meanwhile, Robert Lee emphasised the importance of diversification and legislation changes to support the development of takafuls in Hong Kong. 

The panel discussion concluded with a call for collaboration between legal professionals and the government to explore and promote Islamic finance. The president of Lawsoc expressed the commitment of the legal society to diversifying their work and unlocking the full potential of Islamic finance in Hong Kong. The expansion of legal services and provision of legal support for Islamic products were critical drivers for sustainable growth in this sector. 

In summary, the panel discussion on Islamic finance provided valuable insights into Malaysia's contributions, the inclusive nature of Islamic finance, the potential for growth in Hong Kong, and the importance of collaboration between legal professionals and the government. With ongoing efforts to promote awareness and understanding through upcoming seminars and conferences, the future of Islamic finance in Hong Kong looks promising.