Financial, Investment, Corporate & Industrial Views in Global Media
Prof. Dr. Mohd. Ma'sum Billah
Prof. Dr. Mohd. Ma'sum Billah
Thursday, November 15, 2012
Wednesday, November 14, 2012
My Corporate / Professional Lecture Series
CORPORATE / PROFESSIONAL LECTURE SERIES
By:
Prof. Dr. Mohd. Ma'sum Billah:
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APPLIED ISLAMIC, MODERN & COMPARATIVE SUBJECTS OF:
Finance, Banking, Capital Market, Money, Bond, e-Commerce, Insurance, Takaful, Shares, Investment, Public finance, Financial reform, Government financial & investment strategies and Policies, Privatization, Industrialization, BOT, Investment cooperation, Wealth & Asset management, Business, Petroleum trade & finance, Barter trade, International trade, Company, Cyber law, Entrepreneurship, Cooperative Micro-finance, Contract & other applied corporate / professional / industrial subjects.
My Books
PUBLISHED BOOKS Prof. Dr. Mohd. Ma'sum Billah
Finance, Banking, Money, e-Commerce, Insurance, Takaful, Shares, Investment, Wealth, Business & other applied corporate subjects:
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Monday, October 22, 2012
Cooperative Micro-finance (CMF): A Debt-free Mechanism to Create an Enterprising Nation
The world of today had been suffering un-repairable damages due
to debt-based economy with risk transferring techniques, which give one an
opportunity to gain at the expense of others by diminishing the spirit of
eco-democracy thus, fails to guarantee an eco-peace in today’s world of
humanity. Such a debt-based mechanism enriches the riches with opportunities
while closing the door of poor by depriving them from enjoying with true
eco-democracy.
To rescue the world humanity from an unjust treatment through
debt-based economy CMF a debt-free asset based mechanism with risk
sharing technique is timely, which may be among the right alternative moves to
day to facilitate a sustainable “Debt-free 3rd World Development with true
democracy to peace for all” with result oriented achievement by creating an
enterprising and entrepreneur based Nation aiming to have the chance to be self-reliant,
matured, esteemed and proud leading to eco-Peace, Progressive and Prosperous in
the Contemporary World of advanced socio-economic reality.
The mechanism of
operation of CMF shall be adapted based on the micro-democratic arrangement
with holistic spirit of mutual cooperation, brotherhood and solidarity in view
of targeting socio-economic prosperity and peace among all humanity with no
issue of one’s religion, race, status, gender or nationality.
Harmonizing Modern Financial System With Shari'ah Standard: Possible Mechanisms
The modern financial system had been serving both Muslim and non-Muslim with common benefits. Though some aspects of the Modern financial system are contrary to the principles and spirit of Shari’ah, but several technicalities of it are indeed in harmony with the Shari’ah standard. Because of some issues of modern system contradict the spirit of Shari’ah it may be unfair to generalise the Modern financial system as un-Islamic.
Shari’ah standard of financial system is purely based on the Divine rulings, which do not in reality reject the practicality of some issues or procedures of Modern financial system, so long one is in harmony with the spirit and principles of Divine standard.
Islamic financial system in the contemporary practicality is an able alternative parallel solution provider for global industrial needs acceptable to both Muslim and non-Muslim environments whilst modern financial system stands on its own platform with its standard and services.
Despite this dual system is greatly appreciated and acceptable in the global environment respectively, but leaves some questions and confusions haunting in the mind of generals on the issues justifiably are proven to be non-contradicted. To reduce such queries while creating friendlier movement in the financial industry a 3rd position may additionally be suggested and that is, “Harmonized System”.
The harmonizing of modern financial system to Shari’ah standard can only be recognized on those issues or aspects, which are justifiably proven not contrary to the Divine spirit and the Shari’ah principles per se. Thus, the burden of proof shall be on the modern financial system to ensure its subject matter is in total compliance with the Shari’ah standard. While the Shari’ah justification of such harmonization is on the basis of the principles of Masaleh al-Mursalah (public interest) so long the fact in issue is not contrary to the Divine spirit and standard.
Shari’ah standard of financial system is purely based on the Divine rulings, which do not in reality reject the practicality of some issues or procedures of Modern financial system, so long one is in harmony with the spirit and principles of Divine standard.
Islamic financial system in the contemporary practicality is an able alternative parallel solution provider for global industrial needs acceptable to both Muslim and non-Muslim environments whilst modern financial system stands on its own platform with its standard and services.
Despite this dual system is greatly appreciated and acceptable in the global environment respectively, but leaves some questions and confusions haunting in the mind of generals on the issues justifiably are proven to be non-contradicted. To reduce such queries while creating friendlier movement in the financial industry a 3rd position may additionally be suggested and that is, “Harmonized System”.
The harmonizing of modern financial system to Shari’ah standard can only be recognized on those issues or aspects, which are justifiably proven not contrary to the Divine spirit and the Shari’ah principles per se. Thus, the burden of proof shall be on the modern financial system to ensure its subject matter is in total compliance with the Shari’ah standard. While the Shari’ah justification of such harmonization is on the basis of the principles of Masaleh al-Mursalah (public interest) so long the fact in issue is not contrary to the Divine spirit and standard.
Saturday, September 22, 2012
3rd World Development Strategy? 'Cooperative Micro-bond (Sukuk)' may be a discovered-solution
History witnesses that, the World had been dominated by debt-based economy with risk transferring mechanisms. Factually, today the debt-based economy failed to rescue the world with material self-reliant and prosperity. Alternatively, an asset-based economy with risk sharing techniques may be a guaranteed platform to direct the world with economic prosperity ahead.
It is had been a common culture of any nation particularly among the 3rd world countries, relying on borrowing habits towards any form of development be one either private or government’s project, resulting the nation carry the life-long debt curse, which eventually compels the nation and its citizens tying their necks in to paying the price of liability and thus, darkens the future of the nation as an ultimate destine.
To rescue the nation and its people of 3rd world countries, Cooperative Micro-bond is among the right rescuer platforms to discover a way ahead towards creating a debt-free developed nation in the wake of globalization.
A Cooperative Micro-bond scheme is also justified under the broad principle of Shari’ah as a holistic mechanism based on mutual cooperation, brotherhood and solidarity in view of noble achievement and common good for all humanity and creatures as enshrined in the holy Qur’an: “… cooperate amongst you in righteousness and piety….” (5:2).
Cooperative Micro-bond is a discovered strategic mechanism, which enables any nation develops its major sectors by having a debt-free financial power through a holistic cooperative micro-spirit with sharing and caring culture in view of creating a nation self-reliant, progressive, prosperous and proud in this advanced tech-era.
The rational outlook of Cooperative Micro-bond is to make a nation enjoy with a debt-free fund solution required for any project development within the spirit of mutual cooperation, maturity and common sensitivity towards creating a self-reliant nation visioning prosperity. This is among the sustainable promising mechanisms, which may ease the nation from undesirable dependency and debt while moving forward to create an enterprising and entrepreneur based nation as the way ahead in today’s socio-economic and political reality.
In the model and structure of a Cooperative Micro-bond where the government or the private sector shall first identify a sound project requires financing in its development. The project then shall be listed in the project index with accrual value (justifiable required project financing). The total project-financing shall be packaged with shares at a minimum per value affordable to all levels of citizen so to enable them to participate full-heartedly in the national development plan within the holistic spirit of mutual cooperation, solidarity and brotherhood towards common goal of national prosperity. Such move eventually makes them proud through having the profit oriented micro-stake in the national projects. The shares shall be ultimately opened for public for subscription as per one’s ability with affordable equity financing in view of profit making. The shareholders shall hold the opportunity to participate in the secondary market.
In the total management with successful outcome in a Cooperative Micro-bond shall be facilitated by a team force where the government undertake the appropriate policies, securities and effective enforcement. A Project central body shall be positioned in project related decision making. The Project management office, which shall be responsible for the total management and duly operation of the project. The central bank shall be assigned in issuance of ordinary bond (profit-sharing in equity financing) with limited liability as per the central guidelines while a credible bank shall be authorized to manage the total project funds besides managing the share certificates issued in the name of the central bank as per project directives.
An audit and compliance unit shall be established at both central as well as management levels to ensure the total compliance in all aspects of the policies, project, funds and the management. A special unit shall also be established comprising of several experts to advise the project board so to facilitate them in making appropriate policies and decision. There shall other vital units be established under the management office, among them are intelligence unit, which shall undertake the total risk management and attractive income oriented business plan of the project. The project management office (PMO) shall be designed under the management office, which shall be responsible for the total development of the project with successful result. For the continuing maintenance of the entire components of the completed project a project maintenance unit shall be established under the management office.
In other word, the total discipline, management and operation in a Cooperative Micro-bond arrangement shall be centralized with regulatory action, but with separation of power, assignment and due accountability.
The issuer of Cooperative Micro-bond shall be the Central bank in terms of capital guarantee (in its capacity as the fund guarantor) to the subscribers while the fund management bank shall hold the total accountability (in its capacity as the fund manager) to the Central bank for the fund release as per the Central bank’s guidelines and subsequently the Project board shall be the end accountable (as the Principal liability) for the right management of the fund.
The total investment in the Cooperative Micro-bond scheme shall be treated as conservative Public fund by empowering neither capacity for the government nor any party to influence over or misuse the fund, which shall be strictly regulated by the standard policy and be closely audited by the Audit and Compliance Unit at both Central as well as Micro-levels.
To protect the subscribers against any unexpected risk on their fund shall be ensured by a compulsory project Insurance policy to be purchased in the name of the Project board.
Among the sectors may potential be included for development with the funding facilities under the Cooperative Micro-bond scheme are public, private or semi-government projects namely: highways, bridges, power plants, water supplies, gas supply, mono-rail, industrialization, digitalization, refineries, tourism spots and other commercial oriented mega projects.
Subscribers in the Cooperative Micro-bond scheme may be any one regardless of one’s status, background, gender, nationality or religion so long one participates with the share price at per value. The per value of shares shall be nominal affordable to all categories of people so to give an opportunity to participate in the national development mission besides having the chance to participate in the share market in view of possible legitimate money making. The shares shall be allowed to be traded in both the primary as well as in the secondary markets so to enable the Project to be rated highly with gradual effect.
The total net income of the project under Cooperative Micro-bond scheme may be suggested to be distributed as: 60% for the shareholders as dividends; 20% shall be allocated for the continuing maintenance of the project; 10% shall be reserved in a special security fund (SSF) in view of contributing to the settlement of the national debts and; 10% shall be reserved in to a project foundation account (PFA) for the possible humanitarian services.
Among the general benefits for the government in the Cooperative Micro-bond scheme are: the sustainable support to the national development scheme, all categories of standard taxes to be imposed over the project income at its all components, creating a nation with utmost cooperation and maturity, political gain through a smart government’s policy and; internally popular for moving towards a debt-free self-reliant developing nation with smart planning.
It is indeed submitted that, a Cooperative Micro-bond scheme is a new dimension designed in view of rescuing the 3rd world in particular from being hanged with debt, while discovering a way ahead to develop the nation with debt-free cooperative micro-bond based on holistic principles of cooperation, utmost care and concern leading to make the nation self-reliant, peace, harmony, progress, prosperity and proud in the modern reality.
It is had been a common culture of any nation particularly among the 3rd world countries, relying on borrowing habits towards any form of development be one either private or government’s project, resulting the nation carry the life-long debt curse, which eventually compels the nation and its citizens tying their necks in to paying the price of liability and thus, darkens the future of the nation as an ultimate destine.
To rescue the nation and its people of 3rd world countries, Cooperative Micro-bond is among the right rescuer platforms to discover a way ahead towards creating a debt-free developed nation in the wake of globalization.
A Cooperative Micro-bond scheme is also justified under the broad principle of Shari’ah as a holistic mechanism based on mutual cooperation, brotherhood and solidarity in view of noble achievement and common good for all humanity and creatures as enshrined in the holy Qur’an: “… cooperate amongst you in righteousness and piety….” (5:2).
Cooperative Micro-bond is a discovered strategic mechanism, which enables any nation develops its major sectors by having a debt-free financial power through a holistic cooperative micro-spirit with sharing and caring culture in view of creating a nation self-reliant, progressive, prosperous and proud in this advanced tech-era.
The rational outlook of Cooperative Micro-bond is to make a nation enjoy with a debt-free fund solution required for any project development within the spirit of mutual cooperation, maturity and common sensitivity towards creating a self-reliant nation visioning prosperity. This is among the sustainable promising mechanisms, which may ease the nation from undesirable dependency and debt while moving forward to create an enterprising and entrepreneur based nation as the way ahead in today’s socio-economic and political reality.
In the model and structure of a Cooperative Micro-bond where the government or the private sector shall first identify a sound project requires financing in its development. The project then shall be listed in the project index with accrual value (justifiable required project financing). The total project-financing shall be packaged with shares at a minimum per value affordable to all levels of citizen so to enable them to participate full-heartedly in the national development plan within the holistic spirit of mutual cooperation, solidarity and brotherhood towards common goal of national prosperity. Such move eventually makes them proud through having the profit oriented micro-stake in the national projects. The shares shall be ultimately opened for public for subscription as per one’s ability with affordable equity financing in view of profit making. The shareholders shall hold the opportunity to participate in the secondary market.
In the total management with successful outcome in a Cooperative Micro-bond shall be facilitated by a team force where the government undertake the appropriate policies, securities and effective enforcement. A Project central body shall be positioned in project related decision making. The Project management office, which shall be responsible for the total management and duly operation of the project. The central bank shall be assigned in issuance of ordinary bond (profit-sharing in equity financing) with limited liability as per the central guidelines while a credible bank shall be authorized to manage the total project funds besides managing the share certificates issued in the name of the central bank as per project directives.
An audit and compliance unit shall be established at both central as well as management levels to ensure the total compliance in all aspects of the policies, project, funds and the management. A special unit shall also be established comprising of several experts to advise the project board so to facilitate them in making appropriate policies and decision. There shall other vital units be established under the management office, among them are intelligence unit, which shall undertake the total risk management and attractive income oriented business plan of the project. The project management office (PMO) shall be designed under the management office, which shall be responsible for the total development of the project with successful result. For the continuing maintenance of the entire components of the completed project a project maintenance unit shall be established under the management office.
In other word, the total discipline, management and operation in a Cooperative Micro-bond arrangement shall be centralized with regulatory action, but with separation of power, assignment and due accountability.
The issuer of Cooperative Micro-bond shall be the Central bank in terms of capital guarantee (in its capacity as the fund guarantor) to the subscribers while the fund management bank shall hold the total accountability (in its capacity as the fund manager) to the Central bank for the fund release as per the Central bank’s guidelines and subsequently the Project board shall be the end accountable (as the Principal liability) for the right management of the fund.
The total investment in the Cooperative Micro-bond scheme shall be treated as conservative Public fund by empowering neither capacity for the government nor any party to influence over or misuse the fund, which shall be strictly regulated by the standard policy and be closely audited by the Audit and Compliance Unit at both Central as well as Micro-levels.
To protect the subscribers against any unexpected risk on their fund shall be ensured by a compulsory project Insurance policy to be purchased in the name of the Project board.
Among the sectors may potential be included for development with the funding facilities under the Cooperative Micro-bond scheme are public, private or semi-government projects namely: highways, bridges, power plants, water supplies, gas supply, mono-rail, industrialization, digitalization, refineries, tourism spots and other commercial oriented mega projects.
Subscribers in the Cooperative Micro-bond scheme may be any one regardless of one’s status, background, gender, nationality or religion so long one participates with the share price at per value. The per value of shares shall be nominal affordable to all categories of people so to give an opportunity to participate in the national development mission besides having the chance to participate in the share market in view of possible legitimate money making. The shares shall be allowed to be traded in both the primary as well as in the secondary markets so to enable the Project to be rated highly with gradual effect.
The total net income of the project under Cooperative Micro-bond scheme may be suggested to be distributed as: 60% for the shareholders as dividends; 20% shall be allocated for the continuing maintenance of the project; 10% shall be reserved in a special security fund (SSF) in view of contributing to the settlement of the national debts and; 10% shall be reserved in to a project foundation account (PFA) for the possible humanitarian services.
Among the general benefits for the government in the Cooperative Micro-bond scheme are: the sustainable support to the national development scheme, all categories of standard taxes to be imposed over the project income at its all components, creating a nation with utmost cooperation and maturity, political gain through a smart government’s policy and; internally popular for moving towards a debt-free self-reliant developing nation with smart planning.
It is indeed submitted that, a Cooperative Micro-bond scheme is a new dimension designed in view of rescuing the 3rd world in particular from being hanged with debt, while discovering a way ahead to develop the nation with debt-free cooperative micro-bond based on holistic principles of cooperation, utmost care and concern leading to make the nation self-reliant, peace, harmony, progress, prosperity and proud in the modern reality.
Tuesday, July 31, 2012
3rd WORLD DEVELOPMENT STRATEGIES? a "Debt-Free Mechanism".
"Cooperative Micro-finance" & "Cooperative Micro-Bond"
may be among the right alternative Moves to facilitate a Sustainable “Debt-free
3rd World National Development” with result oriented achievement by
creating the Nation and it’s People Self-reliant, Matured, Esteemed, Peace,
Proud, Progressive and Prosperous in the Contemporary World of advanced
Socio-economic Reality.
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