S'pore aims to become center for Islamic banking

S'pore aims to become center for Islamic banking

Singapore is launching a drive to become a center for Islamic
financial services as part of attempts to strengthen ties with
the Middle East, former Prime Minister Goh Chok Tong says.

Islamic law forbids the charging of interest. Islamic banking
conforms to this guideline, and appeals to Muslims who don't want
to deal with Western-style institutions.

Singapore already has a major banking and fund management
industry, backed by assiduous government support. The city-state
promotes itself as a regional financial center.

"I want to turn Singapore into a center for Islamic financial
services too," Goh, who is now the central bank governor, said in
a speech late on Friday.

Goh said he wanted to focus on boosting ties with the Middle
East, which he pursued as Singapore's leader. Under his tenure,
Singapore opened free-trade talks with many Arab states.

"I want to enlarge our economic space into the Middle East.
One way to do this is to build up expertise to manage Arab
wealth," Goh said.

Singapore's central bank is already reviewing local
regulations to see if there are any "impediments" to the spread
of Islamic-style financial services.

"We see Islamic financial services as part of the broad range
of financial service capabilities that Singapore, as a financial
center, should provide," the central bank said recently. -- AP