Introduction

Following the brilliant 15Malaysia short clip “Potong Saga” in which characters in the film joked about Islamic finance, we can see that there are often misunderstandings about what Islamic finance is really all about. As KL Management has written, practiced and helped many companies/individuals over the years on Islamic finance, it’s probably time to place another gentle reminder on the difference between politically correct terms used in finance – Islamic & conventional.

To Islamic Finance

Shariah (also spelled Syariah, Sharia, Syaria, etc.) principles is the ultimate foundation and concoction of what Islamic finance is really all about. The promise delivered here is that Islamic finance expresses a lot of financial needs and interests of individuals and companies with much integrity, honest, trustworthy and equitable finance management/distribution in the subject of speech.

What makes Islamic finance a growing alternative for financial dealings is that good corporate governance, fairness and transparency in all of finance combines as a single package: Think of it as more consumer-focused, fair and justifiable approach to mutual sharing of risks and rewards.

Islamic finance features

Mutual risks and rewards – Profit and risk sharing. Because financial dealings with both parties (or more) has to be clear of any uncertainties, dealings adopt strong due diligence and much transparency.

If you need more information on Islamic finance, please schedule an appointment with one of our financial consultants.