Malaysia plans Islamic Digital Economy Framework

Reported by: |Updated: December 27, 2017

Malaysia said it is proposing to launch ‘Islamic Digital Economy Framework’ by March 2018 intended as a growth backbone for its entire halal industry. The framework is expected to provide a digital platform for cooperation in areas such as funding and financing of Islamic business endeavors, halal and Shariah compliance, Islamic digital economy regulations and the incubation of halal business operations, including Islamic banking and finance. The framework is designed to attract investors and venture capital to fund halal businesses and to conduct their transactions and investments in compliance with Shariah laws and regulations. Malaysia has finalized a framework for conventional startup funding and venture capital deals. The driving force behind the Islamic digital initiative is the Malaysian Digital Economy Corp, or MDEC, a government-backed entity which is seeking to create a growth ecosystem for the Islamic economy in Malaysia in accordance with the government’s national strategy to tap the potential of both the Islamic and the digital economy. MDEC is cooperating with Jabatan Kemajuan Islam Malaysia (the government’s Department of Islamic Development) and Hall Amanie, an independent Shariah advisory firm, to set up the framework.