KUALA LUMPUR, Dec 19 — Financial cooperation and progress were the key message shared between the three heads of state gracing the Kuala Lumpur Summit 2019 today.
Prime Minister of Turkey Recep Tayyip Erdogan had urged for trade between Muslim nations to be made using national currencies instead of the US dollar.
He elaborated that a new transaction system should be created for the Islamic world as this can be more resistant to economic and financial shocks and manipulation.
“It is important to talk about the issues but it is more important is to find solutions. I think we have to focus on what we can do. As you know we have been talking for some time now to agree on bilateral trade due to foreign exchange pressure.
“Instead of doing trade using foreign currency, we would like to trade with our own national currencies. Financial markets are fragile to shocks and manipulation. To avoid this, we should try to create new transaction systems.
“As trade war is a problem today, issues on trade must take priority. We have to make Islamic finance part of our agenda and Malaysia has already started pioneering the role of having an alternative Islamic finance,” said Erdogan.
Iran’s president Hassan Rouhani shared some of Erdogan’s views, particularly on using national currency instead of the US dollar for trade among Muslim countries.
However, he elaborated that Muslim nations should come up with its own cryptocurrency, saying that Malaysia’s Prime Minister Tun Dr Mahathir Mohamad’s previous dream of utilising the Islamic dinar for trade can come true with the digital coin.
“With new blockchain technology, we would be able to introduce a united cryptocurrency to Muslim states with the cooperation of our central banks.
“In the past, Dr Mahathir had wanted to introduce the Islamic dinar. With such technology underway, we can set up a new currency for the Muslim world. The benefit of cryptocurrency is that it can cut through bureaucratic and market fluctuations,” said Hassan.
He added that utilising cryptocurrency or national currency for trade among Muslim nations can allow these countries to further independence from over-reliance on the US dollar.
Hassan also outlined five cooperative measures for Muslim nations that are in the financial industry including banking; the sharing of technologies; trade and commerce; transnational transit and transportation and finally; on tourism.
Dr Mahathir, on the other hand, acknowledged that the Muslim world’s inability to keep up with progress and development have left its nations in a lurch.
This has led to suffering among Muslims worldwide who are also dependent on the mercy and charity of non-Muslims.
“One of the biggest challenge we face while drawing up development plans and strategies in dealing with the disruption caused by technological advancement.
“The rapid pace of these technological advancements threatens to make obsolete some of the strategies and plans we chart today within a few years.
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“We are today witnessing almost daily, how some cutting-edge technology and advanced economic ventures which are merely a few years old had been made inconsequential and that had led to some segments of our workforce being made irrelevant.
“In that context, our challenge becomes two-pronged — firstly, to come up with development strategies and secondly, to make sure they are continuously upgraded so as not to be irrelevant when new technologies emerge,” said Dr Mahathir.
He added that unless Muslims begin developing its own technology, it will forever play catch up with the Western civilisations.
