TITLE: Welcome Remarks by Dr Nurmazilah Dato’ Mahzan, Chief Executive Officer, Malaysian Institute of Accountants at The MIA Islamic Finance Textbook launch

DATE: 17/01/2020






The MIA Islamic Finance Textbook launch

17 January 2020 (Friday), Kuala Lumpur

  • En Mohd Muazzam Mohamed, Chairman, Islamic Finance Committee, Malaysian Institute of Accountants (MIA)
  • Malaysian Accountancy Research and Education Foundation (MAREF) Board of Trustees
  • Members of the MIA Islamic Finance Committee
  • Ladies and Gentlemen
  1. Good morning and welcome to the launch of MIA’s inaugural textbook on accounting for Islamic finance. Thank you all for attending.
  2. Although this textbook is not the first of its kind, we believe that it is comprehensive and thorough in addressing the reporting complexities and challenges facing Islamic financial institutions (IFIs), in order to bridge the knowledge gap in applying Malaysian Financial Reporting Standards (MFRS) for Islamic finance transactions. In brief, the content will encompass assets, liabilities, equity, income and expenses and disclosures in the financial statements of an Islamic bank and takaful entity.
  3. Like many of MIA’s key initiatives which are powered by our collaborative leadership strategy, this textbook is a collaboration between the MIA - through the MIA Islamic Finance (IF) Committee - and the Malaysian Accountancy Research and Education Foundation (MAREF). On behalf of MIA, I would like to thank the Islamic Finance Committee members, MAREF and all who were involved in preparing and completing this textbook, including academics, leading accounting firms, industry experts and MIA’s own team.
  4. MIA is very proud to release this textbook as part of our integrated strategy to help develop competencies and capacity among accountants working in Islamic finance as well as Islamic finance institutions. We trust that this will be a useful reference not only for Islamic finance institutions in Malaysia but also for those in other jurisdictions. This in turn will strengthen Malaysia’s leadership and influence in the global Islamic finance sector.
  5. In addition to this textbook, we are upskilling accountants working in Islamic finance through our Islamic finance mini pupillage programme, which is likewise a successful collaboration between MIA and stakeholders such as audit firms, regulators and industry players. A total of 15 professionals were certified in our first mini pupillage programme held from August 2017 to September 2018 and we are currently conducting the second programme for 2019 - 2020.
  6. The mini pupillage programme features a mix of training and mentoring and requires participants to write case studies. At the end of the first programme, we issued a publication compiling 13 case studies produced by the graduates. In addition, summaries of the case studies produced on waqf, shariah governance and mudharabah to name a few topics were published in MIA’s online knowledge portal – e-AT – and have been shared many times on social media. MIA is delighted to contribute to the increasingly valuable archive of Islamic finance knowledge in order to strengthen the sector and support nation building.
  7. Apart from supporting Malaysia’s efforts to develop competencies and competitiveness in the domestic and global Islamic finance industry, MIA’s intent of upskilling accountants and producing this textbook serves yet another higher purpose – that of promoting Islamic social and environmental finance to drive sustainable development.
  8. Sustainability is at the forefront of global issues now. Sustainability encompasses a wide spectrum of issues that affect ESG – environment, society and governance – which are aligned with the ethics and values of Islamic finance.
  9. This Islamic finance accounting textbook will help improve the transparency and quality of financial reporting. In turn, this disclosure can lead to better actionable insights and decision-making by the leaders of Islamic finance institutions, especially with regards to lending to optimise environmental and social impact, not just for profit maximisation.
  10. At the same time, MIA’s ongoing efforts to upskill accountants on the latest developments in sustainability and Islamic finance can enable them to deploy their expertise for social and economic development that protects and advances communities and the environment.
  11. By looking at the bigger picture of enhancing social and environmental wellbeing, Islamic finance can be a bigger catalyst for sustainable development everywhere. As we move forward, MIA hopes to initiate even more innovative methods of boosting Islamic finance – from advocacy for digital transformation for accountants and finance functions in Islamic finance organisations, to encouraging integrated reporting for Islamic finance institutions to drive ESG.
  12. So, watch this space, and we hope to engage and collaborate with our stakeholders on a bigger scale to achieve even more.

Thank you!