CAGAYAN DE ORO CITY (PIA) — The Ministry of Finance and Budget Management (MFBM) in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) highlighted a growing interest in Islamic finance in the region.
MFBM Chief Financial Management Specialist Farrell Hazsan Usman said the interest is not limited to micro, small, and medium enterprises (MSMEs) but also extends to other sectoral groups.
“When we did our research and public consultation, the general perception of Islamic finance was limited to no interest and zakat. Now, we are seeing more interest in how it can use “takaful” (Islamic insurance) as a social protection mechanism in businesses, as well as for their households,” Usman said during the first day of the 12th ASEAN International Conference on Islamic Finance (AICIF), November 18.
He also noted a rising demand for other Islamic finance products, including those for working capital requirements and project financing.
When asked about the efforts of the Bangsamoro government in fostering the growth of Islamic finance, Usman said the regional government established a technical working group to develop a roadmap for the promotion and development of Islamic finance in the BARMM. Ministry of Agriculture, Fisheries, and Agrarian Reform (MAFAR) Minister Mohammad Yacub chairs the group, with MFBM Minister Ubaida C. Pacasem as vice chair.
He explained that in BARMM’s Islamic Finance Roadmap, Islamic finance is a key pillar of the broader Halal economic system. It also highlights that Islamic finance is not limited to Islamic banking but also Islamic insurance, the Islamic capital market, and the social aspects, including zakah and other charitable institutions.
“In our Islamic finance roadmap, we stress that the development of Islamic finance and banking in BARMM should be market-driven, with the private sector taking the lead,” he said.
Usman also stated that the Bangsamoro Government has outlined strategies to establish a functional and operational Islamic finance system by 2028, guided by the principles of moral governance. These strategies, which have been underway since 2021, focus on strengthening Islamic banking, supporting Islamic microfinance, facilitating the establishment of takaful operations in BARMM, promoting the growth of the Islamic capital market, harnessing the potential of financial technology, and developing human capital.
“To support the main strategies, the Bangsamoro government continues to intensify collaborations with national agencies, such as the Bangko Sentral ng Pilipinas, Insurance Commission, the Philippine Securities and Exchange Commission, the Intergovernmental Fiscal Policy Board, and relevant sectoral groups,” he added.
Usman likewise disclosed that the Bangsamoro Government has already institutionalized initiatives to integrate Islamic finance programs across various ministries. Among these ministries are the MAFAR, the Ministry of Human Settlements and Development, and the Bangsamoro Women Commission. These agencies have begun offering Islamic finance-related services, with the Bangsamoro Women Commission extending interest-free microcredit to women’s cooperatives. (APB/PIA-10 Lanao del Sur)
