Answer for Oral Question PL110

QUESTION

Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim

YANG BERHORMAT PEHIN ORANG KAYA LAILA SETIA DATO SERI SETIA AWANG HAJI ABD. RAHMAN BIN HAJI IBRAHIM requested the MENTERI DI JABATAN PERDANA MENTERI DAN MENTERI KEWANGAN DAN EKONOMI II to state the measures taken by the Ministry to strengthen the capacity of Islamic Finance industry players, including in regulatory harmonisation, financial innovation and knowledge enhancement, to ensure resilience and competitiveness, as well as to produce more local financial experts.

ANSWER

Yang Berhormat Menteri di Jabatan Perdana Menteri dan Menteri Kewangan dan Ekonomi II

In strengthening the capacity of Islamic Finance industry players, the Ministry, through the Brunei Darussalam Central Bank (BDCB), adopts an integrated approach through strengthening the regulatory framework, driving innovation and developing human capital.

From a regulatory perspective, emphasis is placed on the harmonisation of Shariah standards and governance to ensure that the industry operates in a stable, transparent and resilient environment. This approach is important to enhance market confidence and strengthen the competitiveness of Islamic financial institutions at the domestic and regional levels.

BDCB has also organised the Muzakarah of the Shariah Financial Supervisory Board four times since it was introduced in 2020. This Muzakarah serves as an ongoing dialogue platform between the regulator and industry for exchanging views, sharing issues and harmonising understanding on matters relating to Shariah. This approach promotes consistency in the implementation of Shariah governance across the industry.

In terms of innovation, various platforms and research initiatives have been established to encourage the exploration of new areas such as the digitalisation of Islamic Finance. BDCB has issued several Shariah guidelines intended to serve as references in structuring Islamic financial products. Through the FinTech Regulatory Sandbox established in 2017, FinTech companies or FinTech start-ups may also test digital Islamic financial products in a flexible regulatory environment, within the stipulated timeframe and parameters. Initiatives such as the Call-for-Papers, organised jointly with the Brunei Darussalam Islamic Finance (BDIF) Symposium, serve as catalysts for strategic dialogue among industry players, academia and policymakers, thereby strengthening a sustainable innovation ecosystem.

In terms of capacity development, focus is placed on enhancing professional competencies through certification programmes and specialised training in the fields of fiqh muamalat, sukuk and Islamic financial planning offered by the Brunei Institute of Leadership & Islamic Finance (BILIF), the training arm of BDCB, as well as by overseas training centres. This approach aims to produce more local Islamic Finance experts who possess not only technical qualifications, but are also capable of leading innovation and industry development.

In addition, in August 2025, BDCB issued the Draft Shariah Adviser Competency Framework as a key component of the Shariah Adviser Development Strategy. This framework outlines the training and competency requirements for Shariah Advisers and serves as a reference for Islamic financial institutions in the appointment, performance evaluation, training development and succession planning of Shariah Advisory Bodies.

Since Islamic Finance was first introduced in 1991, a total of 40 individuals have been appointed as members of Shariah Advisory Bodies in Negara Brunei Darussalam. Of this number, 25 remain active in carrying out their duties as members of Shariah Advisory Bodies in the local Islamic Finance industry and at the level of the Shariah Financial Supervisory Board. Their role is crucial in ensuring that the implementation of the Islamic financial system complies with Shariah.

Overall, these efforts are undertaken to ensure that the country’s Islamic Finance industry remains resilient and competitive, and is able to contribute significantly to the country’s economic development in line with the aspirations of Wawasan 2035.