In the Name of Allah, The Most Gracious, The Most Merciful

THE BANGSAMORO: IMPROVING THE INVESTMENT AND BUSINESS CLIMATE - WORKSHOP SERIES

Islamic Banking and Finance Workshop

11-12 March 2014, Manila, Philippines.

Vision Statement

by

Dr. Saffrullah M. Dipatuan, Chairman of the Bangsamoro Development Agency

Honorable Central Bank Governor Amando Tetangco, Your Excellencies Dr. Cesar Virata and Dr. Cayetano Paderanga, Miss Amina Rasul, representatives from embassies and aid agencies, partners from the private sector and civil society, friends and colleagues from the Bangsamoro Transition Commission, Bangsamoro Development Agency (BDA) and Regional Government of the Autonomous Region in Muslim Mindanao, Distinguished Guests, Ladies and Gentlemen,

Good Morning and Assalamo alaikom wa rahmatollahi wa barakatoho.

We are gathered today for discussions on an extremely important subject of Islamic Banking and Finance. The topic, for obvious reasons, is very close to the hearts of the Bangsamoro people as it touches the many facets of business and society not only in the Muslim world but in non-Muslim countries as well.

The principles involving the use of finance and banking system as a whole indeed form part of the overall concept of Halaal in Islam. These principles are expected to be practiced by all Muslims around the World, as they are enshrined in our sacred book – The Holy Quran.

And yet we have faced many challenges globally in the past to make ourselves better knowledgeable, and also make others better appreciate and understand, the basic tenets and rationale for Islamic banking and finance. It is pleasing to note that in recent years, however, our understanding of the subject has indeed deepened and the merits of Islamic ways and systems have become clearer to many in both the Eastern and Western worlds. In fact, it is well-known that during the 9^th World Islamic Economic Forum held in Excel. London last year, the PM of United Kingdom declared that UK will be the largest non-Muslim country in the world that will be opening windows of Islamic Banking and Finance.

Here in the Philippines, our Bangsamoro people have longed to do business in the Halaal way. In the past we have faced our own set of unique challenges in pushing forward with Islamic financing schemes. It appears that now with the ongoing success of the peace process between the Government of the Philippines (GPH) and the Moro Islamic Liberation Front (MILF), renewed hope has opened up the prospects for a Halaal way of managing our daily business or, for that matter, living our daily lives.

The new generation of Bangsamoro are just lucky that we have now an incumbent President with a strong will and a pure heart, in the person of the President, His Excellency President Benigno Simeon C. Aquino III who has no qualms in declaring that the ARMM is a failed experiment, hence, the status quo must be altered in order to rectify the mistakes of the past.

On the other hand, the MILF, under the leadership of our Honorable Chairman Al-Haj Murad Ebrahim, has adequately demonstrated its firm determination and commitment to end the perennial conflict in Mindanao. Our chosen way to do this is through a negotiated political settlement as we believe that is the most civilized and democratic means of resolving the centuries-old Bangsamoro question.

The openness and sincerity of both parties, GPH and MILF, has made possible the unprecedented breakthroughs in the peace process leading to the historic signing of the Framework Agreement on the Bangsamoro, its four annexes and Addendum on Bangsamoro Waters. The parties are now poised to sign the Comprehensive Agreement on the Bangsamoro (CAB) before the end of this month – InshaAllah! Hopefully, this comprehensive peace agreement will serve as a means of transportation, a cab, which will bring and transform the Bangsamoro Homeland, the most backward and conflict-prone region in the country, into a haven of peace, progress and prosperity.

As Chairman of the BDA, I have been tasked with the responsibility for galvanizing support for the preparations of the Bangsamoro Development Plan (BDP) covering the period, 2014 – 2020. In this context, I am delighted to see the organization of this workshop on a critical topic which will help to augment the content and quality of the plan.

The plan will serve as a blueprint of the massive reconstruction and development efforts that we intend to implement in the Bangsamoro areas comprising communities ravaged by several decades of armed conflict and government neglect. Certainly, the plan, which is anchored on the right to self-determination of the Bangsamoro, is a major boost to our unending quest for lasting peace and sustainable development.

As we have clearly stated in our concept note, the plan will identify development strategies for the Bangsamoro communities as well as investments and programs that will emancipate our people from the vicious cycle of conflict and poverty through the promotion of inclusive growth, stability and job creation in the Bangsamoro areas. Clearly, Islamic banking and finance will play a key role in the preparation and implementation of private sector driven investments as well as public sector financed development projects.

This plan should be, and must be, different from other existing plans in the country for at least the following three reasons: 1. The area has been mired in armed conflict for several decades. The area must be viewed holistically thru a peacebuilding lens, and with a strong focus on governance and human development in order to ensure long-term sustainability. 2. The backwardness of the region which can easily span a generation necessitates the need for a catch-up strategy. 3. The area is predominantly populated by the Bangsamoro people, whose culture and way of life is unique and distinct from the rest of the country.

It is a good thing that the MILF, in the context of the FAB, and later the CAB, decided to remain with this country provided that in pursuance of our right to self-determination we are given the genuine and meaningful choice and opportunity to live as Muslims and develop as Muslims, in letter and spirit.

The BDA, the development arm of the MILF, is now spearheading the formulation of this plan. We are thankful to all our development partners for the trust and confidence they have bestowed upon BDA and accompany us in this difficult and challenging journey.

I would like to inform our partners that we are now in the midst of our community visioning and consultations. We are already through with our community visioning in Central Mindanao, Southern Mindanao, Zamboanga peninsula, the island province of Basilan, the provinces of Lanao del Sur and Lanao del Norte and the Davao areas. Community consultations will take place in the island provinces of Sulu and Tawi Tawi before the end of this month.

Through these extensive consultations, the BDP will set the strategic direction for the new Bangsamoro government by identifying potential areas for investment, private sector promotion, and cooperation with other regions in the country. Clearly, Islamic Banking and Finance will be vital for undertaking such activities. We are delighted, indeed, by the prospects of gaining insights from the output of this workshop.

I am excited to bring the good news to our friends in the private and business sector that last week, together with our partners in GPH and international aid agencies, we conducted a successful media launch for the plan which was well received, both locally and internationally.

I wish to acknowledge with a sense of gratitude the timely organization of this workshop by the Foundation for Economic Freedom and the Philippine Center for Islam and Democracy, with financial support from the Australian Government.

Finally, I am also very pleased to see the Bangko Sentral ng Pilipinas as the host for this workshop which, we hope is an indication of their strong support for developing the Islamic Finance and Banking Industry in the Bangsamoro and the Philippines.

Thank you for your kind attention.

Good Morning and Assalamo alaikom wa rahmatollahi wa barakatoho.