Manila, MINA – Philippines House of Representatives will prioritize Islamic Banking Law in order to encourage investment to this country, especially Muslim Region.
The Leyte District Representative of the Philippines, Henry Ong, expressed hope that the Senate would follow the House of Representatives in passing this step to provide an Islamic banking framework in the country.
“To improve the economy of the Bangsamoro Autonomous Region in Muslim Mindanao. I am as one of the authors of the Bangsamoro Organic Law and Chair of the House Committee on Banks and Financial Intermediaries, expressed hope that the proposed Islamic Banking law will be prioritized as soon as Congress recovers post-May elections, “He said in a statement, reported in the Manila Bulletin on Monday.
The Philippine House of Representatives approved the third reading of the Bill 8281 or “Law that provides Islamic Bank Regulations and Organizations” on November 20, 2018.
The Senate has not released a committee report on the proposed law. The draft bills in the Senate are Senators Sherwin Gatchalian and Paolo Benign Aquino IV.
Apart from the support of the national budget and foreign grants, said Ong, new investments are needed in North Mindanao and BARMM.
“Having more investment flows through Islamic banks and expanding financial inclusion will further spur economic activity,” Ong said.
Ong explained, Islamic banks would also allow private and government investors in the Middle East, Southeast Asia, and parts of Africa to engage with Philippine businesses with Islamic banks as financial channels, advisers and depository institutions.
This to help attract private investment in the Bangsamoro region and promote greater financial inclusion, especially for underserved Muslim populations.
“The promulgation of the Islamic Bank Act will pave the way for more Islamic banks in this country when Mindanao starts a new chapter in its history now, because the Bangsamoro Organic Law has been ratified and the Bangsamoro Transitional Authority already exists,” Ong said. (T/Sj/P2)
Mi’raj News Agency (MINA)