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Wednesday, 21 May 2008

Islamic Financing Scheme For Malaysian Servicemen

KUALA LUMPUR, May 15 (Bernama) –- It is not unusual for distressed debtors to seek bank financing to settle their outstanding debts.

But can their financial predicaments be resolved in this manner? Can they be assured that they would not fall into debt again? Or are they actually digging a bigger hole in order to cover a smaller one?

These are some of the pertinent questions we must ask ourselves whenever we borrow from a bank.

However, Bank Muamalat Malaysia Berhad is now offering an investment-financing scheme that would actually help you manage your financial obligations better.

Through its latest product, the Muamalat Personal Financing - i , the bank offers a financial management financing (PPK) scheme, envisaged to alleviate your financial burden in your retirement years.


Muamalat Personal Financing – i is about having sufficient fund to satisfy all your financial obligations, upon your eventual retirement.

“Our products are not solely profit driven. We are convinced that the Muamalat Personal Financing – i is a workable solution towards addressing our customer’s liquidity problems,” says Awang alias Musran Tawil, Head of Structured Personal Financing Division in the Consumer Business Development Department.

According to Awang, there are some among us who have the habit of falling into debts without taking into consideration whether they can afford to keep up with the monthly repayment installments.

“Invariably, their inability to service their loans would lead them to pecuniary embarrassment. If their problems are not addressed, it would not only ruin their lives but also those dearest to them.

In view of such circumstances, Bank Muamalat has come out with a financial planning scheme to ward off such financial predicament,” he added.

Muamalat Personal Financing-i is a financing scheme that provides access to investment opportunities that would yield handsome returns.

Initially, the scheme is only available to members of the Malaysian Armed Forces (ATM) and the Ministry of Defence (KEMENTAH) staff.

Muamalat Personal Financing-i is especially suitable for fresh army recruits.


According to Awang, of all the groups of civil servants, those from the armed forces generally need financial assistance the most.

The 40-year old retirement age imposed on armed forces personnel -- the lowest among the civil servants -- place them at a financial crossroad at a time when they are still straddled with numerous financial commitments.

“Compared to the other groups who retire at 55, armed forces personnel need to be given special attention as they would have to find new means to support themselves.

These people would be hard pressed to make ends meet if they were to depend only on their monthly pensions. This would hold especially true if they still have debts to settle,” he elaborated.

The bank’s Muamalat Personal Financing-i scheme enables armed forces personnel to defray their debts while they are still in service, in order to avoid financial difficulties when they retire.


The bank endeavour to provide guidance on cash flow management to the target group, on a continuous basis.

“Those who have registered for the scheme must be very clear on the objective of the whole exercise. At the same time, the bank will guide them on how to manage their cash flow position.

Towards this end, our officers will go down to the ground, to guide and provide counseling to our customers on how they should manage their finances,” Awang elaborated.

For maximum benefit, these sessions would be conducted on a continuous basis, to ensure that they do not lapse into further debts, he added.

“Upon their retirement from the force, the unencumbered pension fund and gratuity payment they receive would be more than sufficient to meet their needs,” Awang said.

“We would then provide them with further advice and recommendations on how best to invest their surplus fund to reap attractive returns,” Awang added.

The Syariah based Muamalat Personal Financing – i offer a fixed rate of return on investment of 5.5 percent.

It features a maximum repayment period of 15 years, monthly installments that are quiet affordable and takaful insurance coverage.

Without doubt, customers will find our financing package one of the most competitive in the market.

Our comprehensive first-of-its-kind financing scheme would go a long way towards fulfilling our customers’ financial requirements.


In view of the fact that it is pioneering such personal investment-financing scheme, the bank is well aware of the risk involved in such an undertaking.

“Being a small player in the banking industry, we initially faced a lot of difficulties to ensure the viability of the Muamalat Personal Financing – i.

However, we are pleased to note that although the product has yet to be launched officially, the bank has managed to secure applications from 1,600 armed forces personnel.

We expect to process a lot more applications once the scheme is officially launched in May,” Awang revealed.

“Since this is basically a structured personal financing package, it can be made available to any organisation that wish to provide such facilities to their work force.

However, interested employers must comply with the conditions that the company’s payroll is made through Bank Muamalat and that their Human Resource Department shall authorise the salary deduction for the monthly repayment towards the facility,” Awang clarified.

“Bank Muamalat is confident that the RM360 million targeted for disbursement under this facility could be achieved.

We owe it to ourselves to ensure that those who are willing to sacrifice their lives for the country would not be neglected in their time of need,” Awang commented.

Interested employers can contact the Bank at 03-2698 8787 or refer to our web site at for further details.


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