KUALA LUMPUR: Islamic finance has a major role in plugging the gap between long-term sustainability and inclusive growth with the 17 sustainability development goals (SDGs) as a guiding compass.

       Bank Negara Malaysia (BNM) deputy governor Datuk Shaik Abdul Rasheed Abdul Ghaffour said most of the SDGs were aligned with the objectives of Shariah or Maqasid Shariah, making Islamic finance naturally advance and spearhead sustainability goals.

       "This is the case in Malaysia, where sustainability objectives are materialised through the adoption of Value-based Intermediation (VBI) practices. For a few years now, Islamic financial institutions have contributed significantly in pursuing sustainability efforts domestically.

       "We also see many Islamic financial institutions helming sustainability efforts in their respective financial groups, both domestic and foreign,” he said in his keynote address at the Islamic Finance International Conference today.

       Abdul Rasheed said collectively, the Islamic financial institutions in Malaysia have intermediated over RM155.6 billion in VBI-aligned initiatives over the past three years.

       Being a mature system today, he noted that Islamic finance is poised to scale up value-based finance solutions and continues to take the lead in creating a greater impact on the environment, economy and society through several measures including harnessing the power of digitalisation and embracing transformative change.

       "Studies show that an estimated 70 per cent of new value to be created in the economy over the next decade will be based on digitally-enabled platforms, priming conditions for breakthrough innovation to perennial problems,” he said.

       Abdul Rasheed noted that with the right and responsible application, emerging technologies can amplify the impact of Islamic finance in meeting sustainability goals.

       "For example, the infusion of big data, artificial intelligence and machine learning allow a better understanding of the varied and specific needs of the different segments, especially the unserved and underserved,” he said,

       The two-day conference, which began today, was organised by the United Nations Development Programme (UNDP). - Bernama