The Department of Trade and Industry (DTI) sees a broader range of financing products and services becoming available to the Filipino Muslim community, following the launch of Maybank Philippines’ first Islamic banking unit in Zamboanga on August 14.
Maybank Philippines has set a precedent by being the first to open an Islamic banking window in the country.
Maybank Philippines is the first to open an Islamic banking window, marking a major step forward for the country’s financial sector. The launch is expected to provide access to financial services for the Filipino Muslim community and promote inclusive economic growth.
Aleem Sidiqui Guiapal, program manager of the DTI Halal Industry Development office, expressed optimism that this will lead to a rise in the number of banks offering Islamic banking services.
Guiapal emphasized that the availability of financing is crucial to expanding the Philippine halal ecosystem, with the goal of turning it into a P230-billion industry and creating 120,000 jobs between 2023 and 2028.
With more financing options, the Philippines could also see a 20 percent annual increase in its current halal output, which consists of 3,000 certified products, establishments, and restaurants.
“Funds are not the problem because the banks have the capacity. But there is limited access since we only have two Islamic banks—CARD Bank in Cotabato and Maybank Islamic in Zamboanga—as addition to Al Amanah Islamic Bank,” Guiapal said in a report on Malaya.
The initiative began in 2013 when Islamic Finance was introduced to national leaders, sparking interest in creating a framework for Islamic banking.
By 2015, a bill was filed in Congress to establish a national regulatory framework, which eventually led to the passage of RA 11439 in 2019.
The Bangko Sentral ng Pilipinas (BSP) played a crucial role in drafting the law, with former Deputy Governor Nestor Espenilla overseeing the creation of the regulatory framework.
As provided under Republic Act 11439, Islamic banking business refers to a banking business with objectives and operations that do not involve interest as prohibited by the Shari’ah and which conducts its business transactions in accordance with the principles of the Shari’ah.
