22nd February 2011, Malaysia Hall, London — The 2nd installment of the UKEC-MACFIS Career Talk Series was a talk given by Mr Mohammad Faiz Azmi, a Senior Partner at Pricewaterhouse Coopers (PwC) Malaysia. The guest speaker addressed Malaysian students with his presentation titled “A short introduction on Islamic Finance and the accounting issues in Islamic Finance’’.
The event started with a welcoming speech by Tai Zee How, the Deputy Chairman of UKEC who emphasized on the importance of collaboration between UKEC and MACFIS in organizing many more events for students in the future. After that, Mohammad Izzuddean, the President of Malaysian Accounting and Finance Society (MACFIS) talked about benefits that MACFIS can offer to students.
Mr Faiz started off his session by stressing that Islamic finance is just economic transaction (muamalat),and not to be confused with the ritual act of worships (ibadat). The distinction is important according to him, because the principle in all matters involving ibadat is that they are not susceptible to change. In muamalat, however, there is room for development and the law can be changed to facilitate human interaction and to promote justice.
Later, he continued by explaining the Islamic Financial System structures, which consist of Islamic banking, Islamic capital market, Islamic asset management and Islamic insurance (takaful).
He further elaborated on the differences between Islamic and conventional banking, where he said that Islamic finance modes are based on profit and loss sharing because of interest (riba) prohibition. Mr Faiz also shared the interesting fact that the practice of Islamic banking in Malaysia, which has been in place since 10 years ago, is currently being followed by other banks in the Middle East. Finally, he urged the students to learn more about the system as we have an important task to be the role model for others.
Report Prepared by:
Ahmad Syawal Hafriz bin Abdullah