ThxPORTAL - My OnlinE InvestmenT ProgresS

SONGKLA (Thailand), July 9 (Bernama) -- Yayasan Pembangunan Islam Malaysia (YaPEIM) or Foundation for Islamic Development Malaysia, will be raising the funds for Ar-Rahnu financing to RM1 billion next year from RM800 million this year.

Its Director General, Datuk Dr. Abd. Malek Awang Kechil, said the move to increase funds was based on the rising demand from traders for the Islamic based mortgage product, particularly from operators of small enterprises.

"YaPEIM's Ar-Rahnu has received encouraging response due to its much lower mortage rates compared with other financial institutions.

"Besides that, the speedier processing time of 15 minutes has also contributed to the rising demand," he said following the launch of a corporate social responsibility programme at the Wittiya San Suksa Religious School here today.

Also present at the event was the founder of the school, Hasan Ali and Principal, Toha Cinda.

A total of RM108,000 in contribution was also given to help upgrade the school's infrastructures and its cooperative business to beef up the school's economic resources.

The contribution was in line with the resolution taken at the 2012 Regional Ar-Rahnu Secretariat Conference, which concluded in Pattani last night, to actively carry out CSR activities towards the well being of the Muslim community.

On the expansion of YaPEIM's Ar-Rahnu branches this year, Abd Malek said the foundation was aiming to open up 24 new branches this year involving an investment of about RM8 million per branch.

However, this would depend on the situation and if there are old branch offices in need of upgrading, they would be given priority rather than opening a new one, he said.

"The cost of investment needed for upgrading a branch would be about the same to building a new branch," he said.

Abd Malek said several franchise outlets will be also opened this year and that the foundation had already identified suitable locations for this.

YaPEIM currently has 256 Ar-Rahnu branches nationwide.

-- BERNAMA