Abdul Halim Ismail, pioneer of Islamic finance in Malaysia - Bank Islam CEO

KUALA LUMPUR - The Father of Islamic Banking in Malaysia, the late Datuk Dr Abdul Halim Ismail, played a significant role in pioneering and expanding the Islamic financial system in Malaysia, said Bank Islam Malaysia Bhd chief executive officer Datuk Mohd Muazzam Mohamed.

Abdul Halim, who was at the forefront of the Islamic finance industry for over three decades, passed away yesterday morning at the age of 85.

Mohd Muazzam said the last time he met Abdul Halim was on June 26 last year.

"Despite his frail condition, he was very enthusiastic when sharing stories about the early days of Bank Islam, the challenges faced, and his advice to us who now bear the responsibility of steering the bank.

"We deeply feel the loss at Bank Islam. May Allah grant him the best of rewards and place his soul among the righteous," he told Bernama.

He added that when Bank Islam was established as the first full-fledged Islamic bank in Malaysia back in 1983, the concept of an interest-free banking system was new and unexplored in the region.

"Under Abdul Halim's leadership, Bank Islam successfully overcame early challenges by introducing Shariah-compliant financial products and services that strictly adhered to Islamic principles.

"Abdul Halim's influence extended beyond Bank Islam itself; he played a key role in shaping the legal framework for Islamic finance in Malaysia.

"Today, Malaysia is globally recognised as a leader in Islamic finance, a remarkable achievement born from his vision and commitment," he said.

As president of the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), Mohd Muazzam noted that the late Abdul Halim introduced the 'Sadaqah House' concept, a platform that gathers Sadaqah, Waqf, and Hibah from the private sector and public to be distributed to those in need.

"We were inspired by his vision and developed it into Bank Islam’s Sadaqa House in 2018," he said.

Additionally, he said Abdul Halim’s achievements were not only in implementing modern banking structures that integrated Shariah contracts into commercial transactions or mu’amalah, but also in founding Syarikat Takaful Malaysia Bhd as an alternative to conventional insurance and Islamic stockbroking.

Born on Jan 28, 1939, in Kedah, Abdul Halim received his early education at Sekolah Melayu Simpang Empat. He continued his studies at Al-Maahad Al-Mahmud (Mahmud College) in Kedah.

He later attended Sultan Abdul Hamid College (SAHC) for his Form Six education from 1960-1961 before pursuing his studies at the University of Malaya, where he earned a Bachelor of Arts in Economics in 1965.

In 1966, he furthered his studies at Oxford University, where he obtained a PhD in Economics, according to the Merdeka Award Trust.

A key milestone in Abdul Halim’s career was in 1983 when he was appointed as the first managing director of Bank Islam, a pioneering Islamic bank in Malaysia.

Among the accolades he received were the Merdeka Award for Education and Community (2017); the Royal Award for Islamic Finance (2014); the 'Outstanding Figure in Islamic Finance' Award from the Association of Islamic Banking in Malaysia; the National Maal Hijrah Figure Award 1425H from the Malaysian government (2004); and Honorary Doctorates in Economics from Universiti Kebangsaan Malaysia and Universiti Utara Malaysia (1995). - BERNAMA