Bursa Malaysia Bhd plans to launch the Commodity Murabahah House (CMH), an international spot commodity platform which operates under Shariah requirements, by middle of this year.
"Currently, Islamic financial institutions are using commodities which are traded on the London Metal Exchange (LME). So, we are creating an alternative platform for Islamic banks," Bursa's chief executive officer Datuk Yusli Mohamed Yusoff said on Mar 12.
He was speaking at a press conference at the 20th Annual Palm and Lauric Oils Conference and Exhibition 2009: Price Outlook 2009/2010 which ended in Kuala Lumpur.
The CMH infrastructure will be developed as a spot commodity market that uses crude palm oil (CPO) as the underlying commodity to facilitate Islamic financing based on the Murabahah concept. Yusli said the commodity-based Murabahah transactions would be the first for Malaysia that used CPO-based contracts.
"It has never been done and we are creating it here. We are combining Islamic finance and commodity which are our areas of strength in Malaysia," he said.
According to Yusli, CMH has received good support from palm oil producers who have committed substantial value of crude palm oil to be used as the underlying commodity. — Bernama
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