Borneo Housing launches range of new Islamic finance products

Abang Johari (third right) receiving a souvenir from Abdul Aziz after the launching ceremony of BHMFB’s new Islamic financing products. — Photo by Mohd Rais Sanusi

KUCHING: In line with the strong demand for Shariah-compliant products in Malaysia, Borneo Housing Mortgage Finance Berhad (BHMFB), a leading housing financing provider in Sabah and Sarawak, has introduced a suite of innovative Islamic products to the market.

The primary objective of the company is to provide home ownership by providing long-term home financing to acceptable qualified individuals.

The host of products – Tawarruq Home Financing-i, Tawarruq Term Deposit-i and Wadiah Savings Account-I, which subscribe to specific Shariah concepts and form BHMFB’s core Islamic financing portfolio, were launched by Chief Minister Datuk Patinggi Abang Johari Tun Openg yesterday.

Tawarruq Home Financing-I, which is a comprehensive and fully Shariah-compliant home financing solution, is aimed to best meet the house buyer’s financing needs with many attractive terms, while Tawarruq Term Deposit-i and Wadiah Savings Account-i are capital guaranteed deposit account and safe custody saving account respectively that allow account holders the flexibility of managing funds according to their short or long term needs.

Speaking at the launch of these products, chairman of the board of BHMFD Tan Sri Datuk Amar Abdul Aziz Husain said Islamic finance had witnessed tremendous growth in the last four decades and its outreach currently spans across the globe, with an asset base of USS1.8 trillion.

“According to estimates, the global Islamic finance industry is likely to grow to US$5 trillion by 2020. Having established itself as a viable alternative during the last financial crises, standard-setting bodies are increasingly viewing Islamic finance as means to promote broad-based, inclusive economic growth.

“Malaysia has long been regarded as a leading country on the global front in Islamic finance after being around for over 30 years. Malaysia is the first country in the world to have a dual system of banking and finance.

“When Banking and Financial Institutions Act 1989 was amended in 1993, most conventional banks in Malaysia started to set up full-fledged Islamic subsidiaries,” he said.

Abdul Aziz noted that being a leading company in financial services, BHMFB would continue to anticipate marketing needs and strive to provide quality services alongside innovative products that create real and lasting value for customers.

He said BHMFB was committed towards creation and innovation in the Housing Finance sectors of its business.

With an enviable track record of uninterrupted profits every single year since its incorporation in 1958, BHMFB has declared total gross dividends of around RM502 million, almost four times its paid-up capital, to its shareholders namely the state governments of Sabah and Sarawak.

With due commitment and integrity, BHMFB aspires to continue to perform well in the future.

Earlier, BHMFB chief executive officer Hwa King Nee said the company’s three new Islamic financial products were what the niche market needs and wants.

He said state civil servants of both Sabah and Sarawak were their main target market group, adding that they have longed for Shariah-compliant financial products and were more and more aware of the necessity for these products.

“Our company, being wholly-owned by the states of Sabah and Sarawak, is the manager for state housing financing schemes.

“Therefore, it is our obligation and responsibility to respond to this demand,” he said.

Hwa stressed that Islamic financial products are not only meant for Muslims.

He said due to the very nature of their transparency, fairness, concept of mutual sharing of risks and profits, these products are appealing to customers from all walks of life, religions and beliefs.

“Therefore, apart from civil servants of Sabah and Sarawak, employees of statutory bodies and state agencies, these three products will also be appealing to members of the public,” he said.

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