Orix Expects Shariah-compliant Products To Boost Volume, Revenue

SHAH ALAM, Nov 30 (Bernama) —  ORIX Leading Malaysia Bhd expects the Shariah-compliant products it launched today ” i-Rental, i-Lease and i-Hire Purchase ” will boost its business volume and revenue.

Its Chief Executive Officer, Hiroshi Inui, said the products, which offered a wide scope of financial services to the customers, were launched in line with the strong demand for shariah products in Malaysia.

“Close to 80 per cent of our customers are from the small and medium industry and the demand for the products in this sector has been evident for a while,” he told reporters after the launch of the products by Deputy Finance Minister, Datuk Lee Chee Leong, here today.

Also present was ORIX Chairman, Tunku Naquiyuddin Tuanku Jaafar.

Inui said with the launch of these products, the company’s revenue was expected to grow by five per cent within the first year and double-digit moving forward.

Meanwhile,  Lee said, the launch of the three shariah-compliant products was apt at a time when Malaysia\’s Islamic finance marketplace was experiencing a significant growth.

“The Islamic finance segment registered double-digit growth in the past decade despite challenging circumstances globally.

“Our presence in the global Islamic finance system has made its mark largely in the global sukuk market, where we have sustained our position as the market leader with market share of over 50 per cent over the last 10 years. “Currently, Malaysia is the largest sukuk market in the world with 50.7 per cent share of global sukuk outstanding, of which 48.2 per cent were corporate sukuk,” he said.         i- Rental, which is based on the concept of Operating Ijarah, is applicable for the rental of equipment (information and communications technology, test and measurement, medical and office automation equipment) offered to business enterprises.

Whereelse i-Lease is offered to business enterprises for leasing of equipment for commercial purposes  and applicable under the concept of Al Ijarah Muntahiya Bi Tamleek.

i-Hire Purchase, which is based on the concept of Al Ijarah Thumma al Bay, is offered to both consumers and business enterprises to finance the purchase of goods.


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