SINGAPORE (22 July 2022) – Launched last month CGS-CIMB Securities’ Shariah-compliant trading account iCash is a boon for Muslim investors keen to trade securities in line with Shariah principles.
While such accounts are already available elsewhere in the region, it is Singapore’s very first of such account introduced by a major brokerage house, marking a milestone in Singapore’s Shariah securities trading scene.
The account allows investors direct access to listed securities on five exchanges. The Shariah status of the securities – stocks, REITs and ETFs – will be flagged, eliminating the need for iCash trading account holders to carry out their own screening for Shariah compliance, or incur charges for a screening solution services.
“iCash is developed to be an end-to-end Shariah-compliant account free from any non-Shariah elements such as riba (interest), gharar (ambiguity) and maysir (gambling),” said Mr Syed Muhamad Alsagoff, CGS-CIMB Securities, Singapore Head of Shariah Investment Services.
Mr Syed Muhamad is an ARS-certified religious teacher, a certification issued by the Singapore Islamic Council (MUIS). Before joining CGS-CIMB he served at Pergas (Singapore Religious Scholars Association) Investment Holdings and FSAC Singapore, where he worked on a range of Shariah investment-related projects. He holds a degree in Islamic Jurisprudence from Malaysia’s International Islamic University and a Masters in Islamic Finance from the International Centre for Education in Islamic Finance.
Through iCash, investors could access the universe of Shariah-compliant securities on the Singapore Exchange (SGX); Hong Kong Exchange (HKEX); New York Stock Exchange (NYSE); NASDAQ and American Exchange (AMEX).
In line with Shariah principles, the trading account does not allow an investor to carry out contra trading activities nor short-selling activities. An investor could only sell securities using iCash if there are stocks in his investment portfolio.
iTradeSyariah Account For Indonesia’s Mammoth Market
Recognising Southeast Asia’s exponential growth in Shariah-compliant investing and in its efforts to ride on the growth, CGS-CIMB also launched a Shariah-compliant trading account for the Indonesian retail market.
iTradeSyariah trading account allows Indonesian investors direct access to Shariah-compliant stocks listed on the Indonesia Stock Exchange (IDX). CGS-CIMB, through iTradeSyariah, aims to tap especially the Indonesian millennials market -– investors who are below 40 years old. The millennials form 78.9% of the country’s retail market, or some 2.083 million investors, according to its launch announcement, citing a publication by Universitas Gadjah Mada.
CGS-CIMB said the launch of the trading accounts was timely as the global Shariah-compliant funds market has grown by more than 300% to reach USD 200 billion in Assets Under Management (AUM) in under a decade, citing figures from fitchratings.com. In Southeast Asia, Shariah-compliant investments have surpassed 20% in the share of the region’s mutual fund AUM, said CGS-CIMB quoting wealthadviser.co.
The launch of the trading accounts “signify CGS-CIMB Securities’ foray into the world of Shariah-compliant investing,” according to the brokerage’s launch announcement.
“Shariah investing will be an integral part of our regional retail portfolio,” said Ms Ruzi Ajith, CGS-CIMB Securities Malaysia CEO and Group Head of Shariah Investment Services. “As we march on with our aspirations to become Asia’s leaders in Shariah stockbroking, we are committed to developing a highly dedicated team that is focused on elevating our group’s Shariah-compliant products and services.”
CGS-CIMB also aims to bridge the divide between retail investors’ needs and product innovation. Notwithstanding the growing appetite for Shariah-compliant investments in the region, the brokerage said there has been limited innovation in product offerings.
The launch of the trading accounts is part of the brokerage’s five-year strategic plan launched in 2021, with a mission to champion Socially Responsible Investing.
CGS-CIMB Securities is a joint-venture between China Galaxy International Financial Holdings Limited, a wholly owned subsidiary of China Galaxy Securities and Malaysia’s CIMB Group. An integrated financial services group, it offers a suite of investment and financial solutions including online broking, equities research and wealth management.
As part of its promotion to kickstart iCash trading account, CGS-CIMB Securities is offering its new and existing clients a reduced commission rate of 0.09% for three months starting 1 July 2022.-/- www.halaluniverse.net
