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