NATIONAL Commission on Muslim Filipinos

THE NATIONAL Commission on Muslim Filipinos (NCMF) got a joint declaration of support from the Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), Securities and  Exchange Commission (SEC), and global thinktanks in promoting Islamic finance not only among Muslim Filipinos but also to non-Muslims for financial inclusion and ethical investing. 

“As regulators and policymakers, our shared responsibility is to ensure that Islamic finance remains faithful to its ethical foundations while meeting the highest standards of prudential regulation, risk management, and governance,” NCMF Secretary Sabuddin N. Abdurahim said during the “5th International Islamic Finance Conference” at Shangri-La The Fort, Manila, Bonifacio Global City, Taguig City. 

The two-day conference on February 2-3, organized by the NCMF Bureau of Muslim  Economic Affairs (BMEA), concluded with the signing of a Joint Declaration of  Strengthening the Philippine Islamic Finance Ecosystem on Tuesday, which gathered around 300 local and international participants, including policymakers, regulators,  financial institutions, development partners, academicians, bank industry practitioners,  and members of the diplomatic corps. 

Department of Finance (DOF) Secretary Frederick D. Go said, “This year, the Philippines, as ASEAN (Association of Southeast Asian Nations) Chair, has a unique opportunity to deepen regional integration, attract investments, and expand access to finance… And so, I encourage the NCMF to further advance its Islamic finance initiatives and capitalize on this  opportunity to strengthen the country’s position in the regional Islamic finance landscape.” 

He said that in 2024, the Insurance Commission (IC) issued the first takaful operator’s licenses, marking another significant milestone for Islamic finance in the Philippines.  

“The IC has so far issued licenses to Pru Life, Etiqa, Stronghold Insurance Company, Inc., and  CARD Mutual Benefit Association, Inc. What’s great about this is that takaful opens the door to ethical, cooperative insurance solutions that are available to all Filipinos,” Go added. 

BSP Senior Assistant Governor Atty. Arifa A. Ala said that BSP established the Islamic  Finance Coordination Forum, chaired by BSP, to bring together all key agencies and build a unified ecosystem. This whole-of-government approach ensures sustainability,  competitiveness, and full integration into the Philippine financial system. 

“The results speak for themselves. From a single Islamic bank before 2019, we now have two more Islamic banks and multiple takaful operators,” she said.  

“Islamic finance is not about loans alone. It is about restoring choice, dignity, and belonging.  And this is the Philippines we are building, one where inclusion is not promised, but practiced,” she added.  

Tapping the untapped market 

SEC chairperson and CEO Atty. Francisco Ed Lim emphasized the huge potential for  Islamic finance in the Philippines.  

“I think this was validated when the government issued the first-ever Shari’ah bond (Sukuk).  I think it was five times oversubscribed, about a billion dollars. From that alone, you can see the potential, coupled with the fact that almost 10% of our nearly 120 million population comes from the Muslim community. So just those two things combined really demonstrate that Islamic finance is an untapped potential for the Philippine capital markets,” he said during the 5^th IIFC.  

“Shari’ah and Islamic finance equities and bond trading will really make our capital markets more active and vibrant, and hopefully it will benefit more Filipinos, not only the investors but also the corporates. Our corporates need sources of funding to expand their businesses, and I think Islamic finance, as was demonstrated by that five-times oversubscribed government issuance, can be an excellent source for business expansion.  We’re really serious about this,” he added. 

“Since I assumed the Chairmanship of the SEC, integrity is the invisible currency of our capital markets, and we should also uphold that in Islamic finance guidelines for the markets,” he urged.  

“We’ve been working with the BSP and other players, like the PDEx (Philippine Dealing  Exchange), which is the exchange for bonds and field ratings, and with the support of the  ADB (Asian Development Bank), I don’t see any reason why we should not progress—at least double or triple the pace we have achieved in the recent past,” he said.

IIFC’s importance to ASEAN prosperity  

Meanwhile, Undersecretary for Local Government Marlo L. Iringan, delivered the message of Department of the Interior and Local Government Secretary Juanito Victor C.  Remulla, which read, “We thank the NCMF led by Secretary Abdurahim for reviving this conference. The 5th IIFC should give us renewed purpose and a renewed commitment to shared prosperity. With the NCMF as one of the Department’s attached agencies, the DILG  remains committed to institutionalizing reforms. This conference also serves as a valuable  preparation for the Philippines ASEAN Chairmanship as we strengthen regional  cooperation in advancing forward-looking policies for inclusive growth.” 

NCMF BMEA director Saleha P. Sacar underscored that the holding of the 5^th IIFC, under the Department of Foreign Affairs’ International Commitment Fund (ICF), reflects the  Commission’s strong commitment to advancing Muslim Filipinos’ economic empowerment. She described the 5th IIFC as a “clear and concrete manifestation of NCMF BMEA’s seriousness and resilience in promoting the economic interests of Muslim Filipinos.”